, Singapore

3 things driving Singaporean consumers to loyalty programs

7 in 10 participate in loyalty programs.

Singaporeans are always on the lookout for ways to add value to their purchases and they similarly appear to love loyalty programs. According to the latest Nielsen Global Retail Loyalty-Sentiment Survey, 69% of Singaporeans have highlighted that they belonged to one or more retail loyalty programs.

The Nielsen Global Retail Loyalty-Sentiment Survey polled more than 30,000 online respondents in 63 countries, including 353 respondents from Singapore, to understand what drives consumers to participate in retail loyalty programs. It examined self-reported participation rates, the rewards or benefit valued most, and the features that were most appealing in the loyalty programs of the future. It also provided insights into the ways to build and maintain a winning loyalty program.

“Loyalty Programs are designed essentially to drive traffic, increase a retailer’s share of the consumer’s wallet and prompt additional purchases,” said Joan Koh, Managing Director, Nielsen Singapore and Malaysia. “For a loyalty program to be successful, it must be carefully tailored to deliver flexibility, greater value and connect to the needs of the customers.”

In the saturated retail landscape, loyalty programs can help retailers to drive more frequent visits and heavier purchasing. Close to seven in 10 locals (69%), mentioned that they strongly or somewhat agreed that loyalty programs made them more likely to continue doing business with a company. 67% of Singapore consumers also strongly or somewhat agreed that they shopped more frequently and spent more at retailers with loyalty programs, while 66% cited that with all other factors equal, they would buy from a retailer with a loyalty program over one without.

Brick-and-mortar retailers were not the only ones benefiting from loyalty program participation. Seven in 10 Singaporeans (70%) also strongly or somewhat agreed that they would shop more at online retailers if the sellers provided benefits similar to those of traditional in-store retailers.

Flexibility was important to the Singaporean consumer. More than eight in 10 Singaporean loyalty program participants (83%) said that it was very or somewhat appealing to be able to earn rewards regardless of whether a purchase was made in store, on a website or on a mobile device. 80% of locals similarly cited the ability to choose among several types of rewards. Respondents also rated two other benefits highly: personalized discounts or promotional offerings based on past purchasing (74%) and the opportunity to earn bonuses by doing some specified activity (71%). 

Monetary incentives ranked highest among the list of most valued program benefits. 67% of respondents selected rebates or cashbacks was the most valued benefit, while 62% cited that product discounts was the most treasured. More than three in 10 consumers (31%) highlighted that free products was the most valued benefit while 26% placed free shipping as their top ranked benefit.

“A robust loyalty program acts as a unique differentiator to help retailers enhance their competitive advantage by reducing the customer’s likelihood to switch stores,” said Raymond Cheung, Head of Retailer Vertical, Nielsen Singapore. “Also, an Omni channel experience is the new reality for consumers. Retailers have to implement a well-designed loyalty program holistically across online and offline channels to effectively drive customer engagement and increase revenue opportunities.”


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