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Market landscape of Customer Loyalty Programs in Philippines

04/11/24

By:

Andrea Sofia

Customer Loyalty Programs conference

The market landscape for customer loyalty programs in the Philippines is developing rapidly, driven by the digital transformation and increased customer engagement across various sectors. The following are the key points outlining the market:


Market Development Over the Past 5 Years

  1. Growth and Expansion: Over the past five years, loyalty programs have expanded significantly in the retail, food and beverage, and financial services sectors, aligning with increased smartphone usage and e-commerce growth in the Philippines. Companies like supermarkets, banks, and quick-service restaurants have leveraged mobile apps and digital platforms to enhance their loyalty offerings.

  2. Digital Transformation: Loyalty programs have shifted from traditional paper-based systems to digital platforms, integrating with mobile apps, QR codes, and online platforms. This shift has led to more dynamic and real-time engagement with consumers, with data-driven insights allowing for personalized rewards and experiences.

  3. Market Size and Structure: The size of the customer loyalty program market in the Philippines has grown due to the expansion of e-commerce and mobile wallet usage. Major retailers and service providers now view loyalty programs as integral to customer retention strategies.

  4. Key Trends:Personalization: Programs are increasingly focused on tailoring rewards and interactions based on customer preferences and purchasing behaviors.
    Integration with Digital Wallets: Loyalty programs are becoming more integrated with mobile wallets, allowing seamless accumulation and redemption of points.
    Tiered Memberships: Businesses have introduced tiered loyalty programs, offering different levels of benefits depending on customer spending and engagement.
    Data-Driven Insights: Data collection through loyalty programs enables businesses to analyze purchasing patterns and create more effective marketing campaigns.

Top Competitors

  1. SM Advantage (by SM Group): One of the largest loyalty programs in the Philippines, primarily used in retail.

  2. BDO Rewards (by BDO Unibank): A comprehensive rewards program tied to banking transactions.

  3. Robinsons Rewards: A key player in the retail sector, offering points across multiple retail chains.

  4. GrabRewards (by Grab): Focuses on rides and delivery services, but expanding into financial services.

  5. Cebu Pacific GetGo: A frequent flyer loyalty program tied to flight bookings, heavily used in travel-related services.

Top Distributors or Dealers

  • Loyalty program distribution is typically managed internally by companies through their digital apps and stores, but partnerships with mobile wallet providers like GCash and PayMaya also play a role in broadening the reach of these programs.

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Japan

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Indonesia

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Australia

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