Optimising Loyalty Program for Maximum Impact

Updating Loyalty Program with a gamified challenge based approach

Team:
1 Product Manager, 3 Engineers, 1 Scrum Master, 1 Product Designer

Contribution:
User Research, Prototyping, User Interface Design

Time Frame:
3 Months

THE CHALLENGE

Loyalty Hit a Roadblock

Users do not perceive the current loyalty system's rewards as valuable enough to influence their spending behavior or increase their long-term engagement with the app.

To understand user experience, we conducted a survey with 130 participants. The survey primarily focused on program awareness, satisfaction, and areas for improvement.
These are the core discoveries highlights from user research:

Low Program Awareness: 70% of users were unaware of the existing program, highlighting a need for improved communication and outreach efforts.

Strong Preference for Direct Discounts: 90% of users preferred direct ride discounts, suggesting a potential shift in the reward structure towards simpler and more immediate benefits.

Dissatisfaction with Current Rewards: Less than 20% of users expressed satisfaction with the current rewards program, indicating a need for a more engaging and rewarding system.

Complex Rewards Structure: User feedback revealed a complex rewards structure, making it difficult for users to understand and participate in the program. Simplifying the structure could improve user engagement.

To gain a comprehensive understanding of loyalty programs, we conducted a competitor analysis across various industries. This included:

Direct competitors on Ride-hailing platforms: Grab and Gojek.

Indirect competitors: Foodpanda and Starbucks - which offer one of the world's most successful loyalty programs in the market.

Industry leaders: We looked beyond direct and indirect competitors to identify companies with highly-regarded loyalty programs across different industries (credit card, airline miles, chain hotels). This helped us understand best practices applicable to our own program.

By examining a diverse range of loyalty programs, we aimed to gather insights and identify successful program elements that could be adapted and implemented to enhance our own offering.

THE SOLUTION

Loyalty Gets a Reboot

User feedback told us loud and clear – the old loyalty program wasn't cutting it. We needed a more direct, engaging approach to rewards.

Through collaborative brainstorming and workshops, we identified gamification as a key strategy to enhance user engagement with challenges.

This approach injects fun, clarifies goals, and fosters a sense of progression and friendly competition.

Challenge Gamification: Boosting User Engagement

To maximise the impact of challenge on the debut, we partnered with the leading supermarket in Singapore, Fairprice Group (FPG).

Through intensive collaboration together with FPG's product designers, involving multiple iterations and research, we honed our challenge feature into its best possible form.

THE OUTCOME

Launching with a Bang!

We opted for an MVP strategy, starting with a single, impactful challenge and gradually expanding from there.

Higher user lifetime value

By creating a fun and rewarding experience, users felt more connected to the challenge and the brand. This increased their loyalty and lifetime value.

Understanding your users is critical:
The survey data allowed us to pinpoint the core reasons for low engagement.

Gamification provides an engaging reward loop:
Challenges transformed loyalty into a fun, interactive experience.

Strategic partnerships unlock potential:
Collaboration with Fairprice Group amplified value proposition and user reach.

Increased Loyalty Program Interactions

The challenge provided users with clear goals, a sense of achievement, and friendly competition. This motivated users to interact with the program more frequently to earn rewards and complete challenges.

Increased New User Acquisition

Increased new user acquisition due to loyalty challenge events. The challenge event created a compelling entry point for new users.

Learning Points