Why Businesses in Malaysia Keep Asking You to Join Their Loyalty Club? Smart Strategy or Just Another Gimmick?
Why Businesses in Malaysia Keep Asking You to Join Their Loyalty Club? Smart Strategy or Just Another Gimmick?
Blog Article
Nowadays, every time you go shopping, makan at a restaurant, or even book a hotel, sure got one question they will ask you—"Want to join our loyalty club ah?" Whether it’s a supermarket, fashion store, online platform, or even a bubble tea shop, everyone is pushing their loyalty program. Some offer points, cashback, discounts, or even free gifts just to get you to sign up.
But why ah? Why are businesses in Malaysia so obsessed with loyalty clubs? Is it really to reward customers, or is there something bigger behind it? Let’s break it down in Malaysian style, and see whether it’s actually good for customers or just another marketing trick.
1. Businesses Want to Keep You Coming Back
The number one reason for loyalty programs? Customer retention. It’s cheaper for businesses to keep existing customers than to find new ones. So, if you already signed up for their club, got points inside, and can get rewards, confirm you will come back, right?
- Example: You go to Tealive, they give you a loyalty card—buy 10 drinks, get 1 free. Now, instead of randomly buying from any bubble tea shop, you will think, "Aiya, better buy from Tealive, almost reach my free drink already!"
- Same with supermarkets. If you have AEON Member Card or Lotus’s loyalty points, you will automatically prefer to shop there, even if another supermarket is nearer.
Basically, loyalty clubs work like a “soft trap”—not forcing you to spend, but subtly making you stick to one brand.
2. Collecting Customer Data = More Sales Strategy
One big reason why businesses push loyalty programs so hard is data collection. When you sign up, they get your:
✅ Name & age – So they know what age group shops there.
✅ Phone number & email – So they can spam you with promos.
✅ Shopping habits – They track what you buy, when you buy, and how often.
Once they have this data, they can target you better with personalized promotions. For example:
- If you always buy baby products, suddenly you will start getting emails like "Special baby milk powder promo just for you!"
- If you buy skincare, suddenly got Watsons SMS with a 20% voucher for your favorite brand.
It’s all about making you spend more without you realizing. Smart marketing strategy, but also a bit sneaky, lah!
3. Encourages You to Spend More to “Earn More”
Loyalty programs often make you feel like, "If I don’t use this, I’m wasting a good deal." But in reality, it makes you spend more than necessary.
- Example: Some brands give double points or bonus cashback if you spend above RM100. So instead of spending RM80 as planned, you think "Might as well top up RM20 more to get extra rewards."
- Airlines & hotels do this a lot. Got loyalty tiers (silver, gold, platinum), so people keep spending just to maintain their status and enjoy perks like lounge access or free upgrades.
It’s a mind trick—you think you’re getting extra rewards, but actually, you’re spending more than usual just to reach the “better deal.”
4. Creates Brand Loyalty (Even When Competitors Are Cheaper)
Once you’re in a loyalty club, you tend to ignore other brands, even if they offer better prices. Why? Because you already invested in collecting points or rewards.
- Example:
- You have Petron Miles card—even if Shell offers cheaper petrol today, you still pump at Petron because your points will “go to waste.”
- You are a GrabRewards Gold member—even if AirAsia ride-hailing is cheaper, you still use Grab because you want to maintain your status.
See the trick? Loyalty game club make you emotionally attached to the brand. Even if competitors give better deals, you hesitate to switch because you feel like you will “lose” your progress.
5. Encourages Word-of-Mouth Marketing
Another reason why businesses love loyalty clubs is because happy customers will bring in new customers.
- If you’re getting cashback or free gifts, you will naturally tell your friends and family, "Eh, sign up lah, got free RM10 credit inside."
- Some programs offer referral bonuses—like Shopee and Lazada, where you get extra discounts for referring friends.
Without realizing, you are helping the brand promote for free. Instead of spending money on ads, they use you to spread the word.
So, Is Joining a Loyalty Club Worth It?
Honestly, yes and no. If you know how to use it wisely, loyalty programs can save you money. But if you blindly follow the system, you might end up spending more than planned.
✅ When It’s Worth It:
✔ If it’s free to join and gives instant rewards (e.g., free shipping, welcome bonus).
✔ If you already shop there regularly, so points and cashback actually benefit you.
✔ If the program gives real value, like priority service, better discounts, or exclusive deals.
❌ When It’s Not Worth It:
❌ If you have to pay a high membership fee but hardly use the service.
❌ If it makes you overspend just to chase points.
❌ If the rewards are so slow to accumulate that you need to spend thousands before getting anything.
Final Thoughts – Businesses Are Smart, But Customers Can Be Smarter!
At the end of the day, businesses push loyalty clubs because it benefits them—it locks in customers, collects data, and increases sales. But that doesn’t mean it’s bad for us. If you use it smartly, you can actually enjoy savings, discounts, and rewards without falling into marketing traps.
Just be aware of your spending habits, don’t let points and promotions control your shopping decisions, and always compare prices before making a purchase. In Malaysia, almost every business has a loyalty program now, so the power is in your hands. Use it wisely, and you win. Follow it blindly, and they win.
So next time someone asks, "Want to join our loyalty club ah?"—think carefully before saying yes! Report this page