Loyalty Best Practices
/
Multi-Country Points Earning and Burning
Best Practice #
48

Multi-Country Points Earning and Burning

Description

MARKETPOINT TYPEPOINT EARNINGS$SingaporeQualification1 SGD → 1 ptReward5 SGD → 1 ptRMMalaysiaAll3 MYR → 1 ptNT$TaiwanAll20 TWD → 1 ptHK$Hong KongReward6 HKD → 1 ptPartner12 HKD → 1 pt฿ThailandAll25 THB → 1 ptAdd market or point type

Members do not think about which country they are in. They want their points to work when they travel, and a program that feels fair where they live. The countries think about margin, and about who pays for a reward. Most platforms make you satisfy one at the expense of the other, or run a separate system per country.

You decide the structure instead. One program for every country, a separate program per country, or a mix. Earning and burning can match everywhere or differ in every market, and there is no limit on how many programs, currencies or markets run on one instance. Adding a country is configuration rather than development: the market, its currency and its point earning rules. The member experience, the mobile app and the reporting follow.

Examples of strategic benefits:

  • The structure follows the business: One program, a program per country, or a mix, decided by how the countries actually operate and who funds the rewards
  • Faster country launch: A new country is configuration, so loyalty goes live with the store or the site instead of waiting for a development cycle
  • Local cost control: Each country can set its own earning rules, and rewards can be priced and restricted per market, so a market with thinner margins does not have to carry the economics of a richer one. And because no exchange rate sits in the earning logic, your reward cost does not move when currencies do
  • More than one point type per market: A market can run a qualification point alongside a reward or partner point, each earning at its own rate, without affecting the other markets
  • One customer profile: A member who purchases in more than one country is still recognised as the same person, whichever way you structure the programs

Defining a multi-country loyalty and reward strategy has many parameters, scenarios and member experiences to consider. Memberson’s platform supports all of these combinations, and we can both explain the options open to you and guide you towards the country and currency strategy that fits your business.

Concept

Run one loyalty program across all your countries, a separate program in each country, or a mix of the two, on the same platform. Earning and burning can be identical everywhere or different in every market, and the member keeps one customer profile whichever way you set it up. The right structure comes from how your business operates, not from what the platform allows.

Execution

  1. Decide the program structure: one program across the countries, one program per country, or a mix
  2. Set up each market with its own currency and point earning rules, including more than one point type where the market needs it
  3. Set the cross-border rules for earning and redemption when members purchase outside their home market
  4. Report earning, burning and point liability per market and for the group

NOTE: point burning is not set per market. The point cost sits on the reward, voucher or loyalty item itself, so what a point is worth on redemption follows the item rather than the country.

KPI

  • Reduction in time to launch loyalty in a new country > 50%
  • Increase in member spending outside the home market > 5%

Please contact Memberson for further details about this best practice, examples and details around how to set this up in Memberson Loyalty CRM platform. Our Loyalty consulting experts can guide and help you to design, set up and execute on this best practice.