Customer reward programs: what benefits are most attractive to consumers in Singapore?
June 18th, 2024, Samuel Tan

Customer reward programs: what benefits are most attractive to consumers in Singapore?

ShopBack and CapitaStar – two popular customer rewards platforms we identified in our earlier article on top loyalty programs in Singapore – are collaborating on a two-month long campaign to encourage shoppers to spend more at Capitaland malls.

From 20 May to 17 July, visitors to participating malls who accumulate purchases of $250 or more using ShopBack-linked payment methods, stand a chance to win between $25 to $250 of cashback. Top spenders will also receive CapitaStar reward points (STAR$) worth up to SGD 1,000.

But what kind of loyalty program rewards – from cashback to interest-free instalments, to extended warranty and free delivery – do consumers in Singapore find most attractive? Do the rewards that shoppers find most appealing depend on the products and services they are buying, or are the most appreciated customer rewards consistent across all retail categories?

Which loyalty program rewards are most popular among Singaporeans overall?

Latest YouGov Surveys research shows that customer rewards involving cost savings enjoy the widest popularity in Singapore. Cashback, is the most popular reward type overall, followed by percentage-off and dollar-off discounts.

Free samples and free delivery are the next most attractive rewards, ahead of extended warranty / free repairs that lengthen the durability of purchased products.

Rewards that allow consumers to save on future purchases follow after – such as bundle discounts (bringing forward future purchases for a bulk discount) and points accumulation (for redeeming future product/service units) – just before interest-free instalments provided by Buy Now Pay Later (BNPL) providers.

Meanwhile, product / service customisation as well as miles accumulation for flight discounts/redemption are the jointly tenth most popular customer reward among Singaporeans overall.

How do the most popular customer rewards vary across different retail categories?

When consumers were asked about the loyalty program rewards they find most attractive when purchasing various products/services, cashback emerged as the top choice in 14 out of 17 categories polled.

Free delivery, however, is the most attractive customer reward to consumers when purchasing Large household appliances and bulky Furniture and Home Furnishings – and is among the top five preferred rewards for Groceries, Toiletries and Household products, Fashion & Apparel, Hobbies & Leisure products, Personal Electronics and Small household appliances.

Extended warranty / free repairs is the most attractive customer reward to consumers when purchasing Automotive products – and is also among the top five preferred rewards for Personal Electronics, Large and Small household appliances, as well as Furniture and Home Furnishings.

When it comes to discounts, percentage-off typically ranks ahead of dollar-off then bundle discounts – except for Groceries where dollar-off discounts are more preferred and Toiletries and Household products where bundle discounts are more popular.

Free samples are especially attractive to consumers when purchasing Makeup & Cosmetics, and are also among the top five preferred rewards for Haircare products and Health & Beauty products.

Additionally, points accumulation for product/service redemption is among the top five preferred rewards for Travel services, Wellness services, Digital subscription services and Dining & takeaway services.

Get the full picture on which customer rewards most excite Singaporeans across different generations and other demographic segments.Learn More

Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in May 2024, with a nationally representative sample of 1,025 adults (aged 18+ years) in Singapore, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, and ethnicity to be representative of all adults in Singapore (18 years or older), and reflect the latest Singapore Department of Statistics (DOS) estimates. Learn more about YouGov Surveys: Serviced.

Cover image by Oksana Sazhnieva