Customer Loyalty Landscape in Indonesia
Get the insights on how brands can increase customer loyalty and brand recall in Indonesia's rapidly changing retail landscape.
· The retail market in Indonesia is fairly organized
· Hypermarkets, supermarkets and other retail chains are replacing the unorganized sector
· Indonesia has a large population
· Credit costs are lower
· The food and beverage (F&B) industry in Indonesia is lucrative and attracts foreign investments into the country
· Indonesia is one of the largest producers in the world for coffee, palm oil, cocoa and fish and the surplus is exported abroad
· There is healthy competition in the retail landscape of the country
· Many retail brands are switching their business online
· The rise in tourism
The COVID-19 Scare
In May 2020, the retail sales index reduced by 20.6%. As per a survey conducted by Bank Indonesia, the sale of clothes, as well as recreational and cultural spending, took a huge nosedive. It was the biggest dip since the year 2008. The Coronavirus pandemic has shaken and shattered the Indonesian economy, even as the above survey says that things will improve in the near future and the economy will open up in the next three to six months.
Customer Loyalty Programs in Indonesia
An interesting scenario is developing in the retail industry landscape in the country. With an increase in the ecommerce business, retailers will find it pretty challenging to engage customers and maintain brand recall. Conversely, new players will find it rather easier to enter the market, given the situation of lower marketing costs. Traditional loyalty programs might not work in the current situation. Here is looking at new customer loyalty and reward program software trends in this sector.
· Omnichannel Program
· Data-driven Reward Programs
· Seamless ecommerce integration
· Gamified loyalty programs
· Engagement-based programs
The good news is that in spite of the pandemic and the threat of recession looming over the retail business horizon, the economic leadership of Indonesia is in safe hands and it would be interesting to see what kind of fiscal reforms will be rolled out to handle the present and future scenarios.
For detailed insights visit https://www.capillarytech.com/