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Best in Class Loyalty Mini Program on WeChat : Swatch Example

Posted in E-commerce on November 2nd 2020

What are Loyalty programs ?

What is CRM?

A Customer Relationship Management (CRM) refers to an array of applications that a company deploys to organize customer data, evaluate customer interactions, obtain the most significant customer data in real-time, and deploy this data to modernize and enhance customer relationship methods each time the company accumulates data. These CRM systems are created to widely organize customer data over multiple communication channels. Take for example looking up or purchasing a watch on Swatch. Swatch China’s CRM will take note of this and re-display pertinent info to the proper segments of buyers or users when they use the relevant social media platforms.

The great value that CRM offers to a brand is essential as a burgeoning number of customers are usually on and often connected. As digital shopping continues to be on the rise, one can only imagine the mammoth number of digitally-influenced deals to surge.

How does a loyalty program work on WeChat?

Designing and planning a loyalty program is a crucial hallmark of any company. CRM strategies and applications are important to the success of any business, and therefore, it is important to know how a loyalty program functions on WeChat.

WeChat Mini Programs and Loyalty Programs

First, it’s important to be aware that most brands use the WeChat Mini Program to get in touch with their customers with cost-cutting mediums for users to get services, access content, as well as purchase products. Definitely, in a time like this when internet marketing has taken over, the procurement price is great and there are not many fresh or recent users. In a bid to tackle this challenge of user growth, brands began to snow dive into the possibilities of present customers and give greater attention to user retention. As a result, a loyalty program on WeChat is becoming more and more appreciated and adopted.

In line with ​a clinical market report by China Internet Watch, the leading Mini Program structures are led by WeChat, Alipay, and Baidu. To estimate the financial transactions on WeChat Mini Programs, a total of over 800B Yuan (US$ 115 bn) was recorded in 2019. And according to an official statement at the WeChat Open Class PRO occasion in Guangzhou, this formed an increase of 160% year over year. Moreover, the rate of WeChat’s Monthly Active Users (MAU) peaked over 1.2 billion in 2020 Q2. All these stat reports go a long way to show that WeChat Mini Program does so well when it comes to creating more opportunities for financial growth. Moreover, brands can always use the WeChat Mini Program to pull traffic from China’s largest social traffic puddle.

A loyalty program works well on WeChat by aiming to enroll and re-engage users via account binding, enrollment, points redemption, and of course, improving the complete experience for the membership.

Why Do Loyalty Programs matter?

A brand’s loyalty program is bound to do well if new users are enrolled and if the members are bound from pre-existing users to the digital app. A workable experience is created or customers to register and link their physical card, bringing about immediate registration. On a rather technical view, a loyalty program readily means differences and a challenge to clean the data. The system constructed is made to be elastic enough so as to work on incomplete membership information as it delivers top-quality data for new users.

With an emphasis on a mobile design, the WeChat Mini Program is created to assess membership status, convert points, and track down a store with just a click. In sum, the membership card features include immediate enrollments, account management, transaction history, points redemption on item catalog, advisor booking arrangement, membership points management such as balance, validation dates, redemption, and so on.

With a loyalty program, members can get rewarded or get points, obtain, and redeem e-vouchers all in an instant. A brand can also create their e-vouchers giveaways. Or, as an alternative, they can import third party e-vouchers to be a part of their e-voucher catalog. Some companies also go as far as designing campaigns for festive periods or birthdays or exceptional events to additionally reward their customers.

Different Types of Loyalty Programs

Partnering with a skilled and trained web like such in IT Consultis, will help a company to establish their entire loyalty program on WeChat. To bring about a seamless O2O (offline-to-online) experience, WeChat Mini Programs helps companies reward points or gift out vouchers to their brand’s users.

Let’s briefly consider a variety of rewards companies can use to pull customers.

 

Coupons

Coupon rewards are discount coupons or a cash ticket that a brand can deduct from the next purchase of their customer.

 

Products

Product rewards are giveaways of models, standard products, or co-branding products.

 

Gifts

When customers purchase items on a special holiday or a birthday they can get additional coupons, tickets, or points too.

 

Experiences

Experience rewards can as well be used to absorb your users whether physically or virtually. As an instance, an invitation to personal offline occasions, beauty treatments or lessons, raffle draws to cash prizes, beta testing...

 

Advantages and Drawbacks of Loyalty Programs

Interestingly, there are also behaviors that brands can reward on WeChat as part of their loyalty programs. These are follow and bind: profile completion, day-to-day check-in, picture posting, comment-making on a broadcasted post and brand tagging on social media sharing of brand events and sharing friends’ invitation to join. These days, loyalty programs are one of the significant parts of an all-inclusive approach to form an enduring relationship with customers. But, as much as their advantages may be, loyalty programs have their drawbacks too. Knowing this will be of help in making the perfect decision when the time comes to launch a loyalty program. Here are some of these advantages and drawbacks.

 

Advantages

 

Improve Customer Retention

Loyalty programs have the power to increase your customer retention capabilities because they are often programmed to make customers feel cherished.

 

Attract fresh Customers

An ingenious loyalty program ordinarily helps a brand to attract fresh customers. Even more, customers who have made purchase decisions with your company tell their friends and family about your brand without any referral program. With this, new customers come on board.

 

Valuable Data

A well-organized loyalty program lets brands acquire important data about customers’ attitude from which they can make well-informed business decisions leading to great business growth and expansion.

 

Enhanced Communication with Customers

By sharing more promotional offers, fresh products or services, and rewards program news, brands can have an enhanced line of communication with their consumers leading to greater brand awareness and loyalty improvement.

 

Drawbacks

 

Market Saturation

Most brands work with identical membership requirements, rewards system, and purchase stipulations. Due to this attitude, they enter into a hot competition which may limit the chances of achieving intended business results. However, working with a loyalty expert company like IT Consultis will give brands the opportunity to create and utilize a unique loyalty program for the best results.

 

Difficulty in Identifying Loyal Customers

Some customers often come again because of the perks you offer. With that, it then becomes difficult to separate them from those coming again due to the impact of the loyalty programs.

Swatch: Brand Presentation

The Swatch Club remains a global hub and a resort for every Swatch lover. It’s somewhere enthusiasts and fans can know more about the Swatch’s past, recent models, and so on. The Swatch Club is everything about people who like to catch fun and make the most of their lives. It’s also for those who can’t but speak about or show their passion for the Swatch brand one way or the other. The members of this unique Club come together from around the globe for special occasions at extremely interesting locations. Over there, they also enjoy the fun part of meeting artists, stellar athletes, and celebrities.

As a space for members, it has a couple of statuses. These statuses rank from Starter to Pioneer. Every member’s status carries its exciting advantages and affords them the advantage of being part of the Swatch Club hub.

What was needed? The Challenge

Before time, even though the Club was running at a global space with a firm, devoted fan base, the experts at Swatch China knew quite well that the top Asian brand is a completely different breed. To be specific, the challenge was that they required a portal that can incorporate well with WeChat and maximize the enormous quantity of engagement and traffic coming from the Swatch Club platform. Interestingly, this challenge was particular to China exclusively.

Notably, the Swatch Club carries out an important part not just in working with their clientele and offerings, but in coming to terms with their attitude as well. And basically, that’s part of their worldwide strategy. By just creating an intimate rapport with the members, Swatch could study them and enhance their offers. As a result, it became important to build a platform created for China and maximize revenues from such a large market.

On top of this, Swatch needed to abide by the China Cybersecurity law and be able to connect with their newly implemented systems in China like CRM System Microsoft Dynamics and others.

Ideas and Objectives The Solution

The team at IT Consultis worked together with Kinetic, a leading advertising company that has handled the marketing efforts of Swatch China for this project. To develop the project, Swatch China chose the Kinetic/ITC team amongst many others.

In line with the appropriate customer experience that Swatch imagined in the course of the project, a client can visit any store located all over the country, where they can just scan a QR code making use of WeChat. Thereby, they can become the brand’s followers. Making efforts to develop a utility or platform to rightly maximize WeChat’s O2O competency was important as it consolidates the info with prevailing tools at Swatch China. This becomes a medium through which the storage and processing of the information can occur.

Implementation

Technologies used

In implementing the strategies and ideas, the major range of work was to design a portal, capable of connecting with the CRM of Swatch through API. The moment a user scans the QR code, the member can then register on the site. Here, they are able to share their details which when stored would be transferred to the CRM.

Moreover, in a bid to attain that objective, for the backend, the ITC team created a platform making use of Laravel and a headless Drupal. And to support the frontend, we adopted ReactJS for its speed. Concerning this design, the Web Developers at IT Consultis commented that the portal is supported by a headless Drupal CMS which offers API endpoints to a React frontend. The experts also highlighted that these technologies often raise the possibility of navigating very fast in-between pages as it reduces the pressure on backend servers due to the fact that only important data is demanded.

They further stressed that authentication is controlled by a distinct Laravel application which offers a dominant login system with OAuth2 and exclusively devises the main user features (register/login/reset password and edit profile) so as to guarantee a protected system. In addition, all data related to users are from Swatch CRM centered on Microsoft Dynamics such that no user data are saved on any of the web-facing servers.

Design

Teamwork was of course important for the success of this plan as the ITC Team was there to build two different applications each time. Again, the Team needed to connect and work with other suppliers too. We were very excited to realize this by bringing our proficiency and know-how in gatekeeping and project management to bear.

The mobile (for WeChat use) and desktop designs was created to perfectly suit the domestic consumers. The work and coordination achieved amongst the local, global teams as well as stakeholders of this project via diverse workshops and alignments really brought about the difference in producing a seamless local-based utility.

Bringing Results With Loyalty Programs on WeChat Mini Programs

At ITC, we are excited to remark that, courtesy of this portal, the Swatch Club is presently in full force for Swatch China, making the brand know more about their customers in China while promoting engagements and telling great stories. Meanwhile, all watch connoisseurs and enthusiasts can, for an amazing win-win situation, join the club.

According to the timeline, the development process only spanned four (4) months. Indeed, it’s now producing the results Swatch China was looking forward to achieving. Since then, the customers’ responses have been way encouraging - they (customers) have joined in hordes and vigorously engaged with the utility. What’s more, we were excited to take helpful responses in the form of feedback from the CRM units in the HQs.

At IT Consultis, we are excited at having the opportunity to contribute to the development of Swatch China. We do hope that the Club will attain the same level of breakthroughs that it is enjoying all over the world.

Key Takeways

To flourish in China’s ever-growing digital market, it is important to learn the art of adopting cutting-edge loyalty programs as they are incredibly cost-effective to brands. What’s more, they make the total sequence of digital marketing a workable concern. Loyalty programs help companies to know the sort of customer relationships and communications that must be given priority at each time so as to maximize the company’s sales as well as their potential levels of development. No doubt, the advantages of launching loyalty programs outweigh the drawbacks! Swatch China can tell better! Swatch China was able improve on its customer retention objective all along and consequently improved its target profitability.

What About your Mini Program Project ? 

IT Consultis is a digital transformation agency in Shanghai, Singapore and Ho Chi Minh City strongly committed to researching, creating and executing the best digital solutions, ranging from strategic projects to entirely tailor-made web developments, Mini Programs,appse-commerce websites, and in-store experiences.

IT Consultis helps you build excellence in your digital transformation strategy in ChinaContact us to know more.

Send us an email at : aurelien.rigart@it-consultis.com