When it comes to loyalty programmes, Chen Peng, the Chief Executive Officer of minden.ai, is a seasoned expert. With over 20 years in the industry, his career has been dedicated to building and refining loyalty programmes across Southeast Asia.
His journey began in 2003 when he worked on a coalition loyalty programme in Singapore—a challenging project that unfortunately didn’t make it to launch due to the complexities of aligning four large organisations from different industries.
Despite this initial setback, Chen’s passion for loyalty programmes only grew. “Back in 2015 to 2017, I flew in and out of Hong Kong almost every week to initiate a coalition loyalty programme with the DFI Retail Group,” he told Vulcan Post.
DFI Retail Group is a Hong Kong-based company that owns and operates retailers such as Cold Storage, Giant, and 7-Eleven in Singapore.
Fast forward to 2020, he launched yuu Rewards Club, which is the product of minden.ai in Hong Kong.
This success set the stage for the expansion of yuu Rewards Club into Singapore, where it officially launched in 2022, and Chen stepped into the CEO role in 2023.
The yuu concept
At first glance, the yuu Rewards Club may seem like just another loyalty programme aiming to unify a scattered rewards landscape.
However, Chen asserted that it leverages AI to create a “hyper-personalised consumer experience” and claims to be unmatched in Singapore regarding its strength, appeal, and customer value.
He added that the Singapore programme wasn’t just a branch of its Hong Kong counterpart; it was designed from the ground up, incorporating lessons from successful coalition loyalty programmes worldwide.
Building a coalition loyalty programme, as Chen describes, is like marriage—you need the right partners to come together at the right time, with supportive parents in the form of aligned goals and shared visions.
Singaporeans have shown a strong affinity for loyalty programmes, with 70% of consumers being enthusiastic about them, said Chen. This interest is partly driven by the rising cost of living and inflation, prompting consumers to find ways to save money.
According to data from YouGov Profiles, around 70% of consumers in Singapore have taken steps to reduce their spending, with the use of loyalty programmes emerging as one of the most popular methods.
The loyalty landscape in Singapore
Singapore is a competitive market for loyalty programmes, with the average consumer participating in 16.6 different programmes. However, this fragmentation poses a challenge, as it spreads consumers’ points thin across multiple platforms and increases the risk of data breaches.
yuu Rewards Club aims to simplify this experience by consolidating a multitude of loyalty programmes from popular brands into a single, unified currency—yuu Points. This allows consumers to accumulate meaningful rewards and reduces the clutter of having to manage multiple loyalty programmes.
From the consumer’s perspective, it streamlines the loyalty experience, allowing them to earn and redeem points across a variety of brands using one app or card.
“Imagine trying to manage 20 different loyalty programmes—you’d have 20 apps, 20 sets of points, and 20 different ways to redeem rewards. yuu Rewards Club eliminates this hassle, creating a more enjoyable and efficient loyalty experience,” he shared.
For brands, the coalition model is cost-effective. This is because starting a loyalty programme independently is expensive, often requiring significant investment in technology, marketing, and operations.
Additionally, the coalition model enables brands to increase sales and customer touchpoints by being part of a larger, more attractive network.
Setting a new standard for loyalty in Singapore
With over 1.7 million registered members and more than 3 billion yuu Points earned, the programme has quickly become a favourite among consumers.
According to Chen, it was even awarded “Best Everyday App” by Google Play in 2023, a testament to its success in integrating seamlessly into the lives of Singaporeans.
One of the standout features of yuu Rewards Club is the DBS yuu Card, which offers consumers the opportunity to earn up to 18% cash rebates (or 36x yuu Points) on their spending.
This makes it one of the most attractive cashback cards on the market, especially for consumers looking to maximise their rewards.
The programme also offers “Super Duper Rewards,” which give members over 50% off on rewards, effectively doubling the value of their points. For example, members can spend 1,000 points—half the usual amount—for a $10 Gojek Cash Voucher, making their points go further.
Since its launch, yuu Rewards Club in Singapore has grown rapidly, now boasting over 20 partner brands, with more being added every month.
The programme’s success lies in its ability to deliver value to both consumers and brands, striking a delicate balance between offering meaningful rewards to consumers without hurting the margins of participating brands.
The coalition loyalty programme also benefits from its strategic partnerships with essential spending categories like groceries, telco, food, and transportation. These partnerships provide a strong foundation for the programme, ensuring that consumers can earn and redeem points on everyday purchases.
Navigating the challenges
Chen has seen the loyalty industry evolve over the years. The first wave of loyalty programmes in the 1970s focused purely on points and rewards.
“About 15 years ago, as the phrase ‘data is the new oil’ gained popularity, brands started running loyalty programmes to collect data and drive personalisation.”
“In recent years, digitalisation has become the frontier of loyalty competition, with points, cashback, payment, and offers businesses converging into the same space,” he noted.
Today, the loyalty industry is undergoing a wave of consolidation, with closed-loop programmes losing popularity and more loyalty programmes integrating into broader ecosystems to enhance their value propositions.
Looking ahead, Chen believes that AI will be the next big disruptor in the loyalty space, offering hyper-personalised experiences.
At yuu Rewards Club, AI already plays a pivotal role in enhancing the consumer experience. The programme uses AI to deliver personalised offers and rewards based on individual preferences and behaviours, making the shopping experience more relevant and engaging.
By bringing together everyday consumer brands on a common platform, yuu Rewards Club can engage consumers in a more granular fashion, helping brands understand their customers better and deliver greater value.
Expanding the yuu ecosystem
As yuu Rewards Club continues to grow, the focus remains on delivering meaningful savings to consumers and expanding the programme’s reach. While the current focus is on Singapore, the aspiration is to bring yuu’s benefits to consumers across the entire Southeast Asia region.
Chen and his team are following developments in AI and digitalisation closely, preparing for the next wave of innovation in the loyalty industry.
As the coalition continues to grow and evolve, it’s clear that yuu Rewards Club is a lifestyle choice for savvy consumers looking to make the most of their spending.
Featured Image Credit: minden.ai