Challenge

Shiseido’s loyalty program in Thailand was suffering from low member awareness and engagement. Fewer than 20% of members had redeemed points in the prior 12 months, while one quarter were unaware they were even enrolled. Over half of members had no visibility of their tier status, and the brand was perceived as catering to an older demographic i.e., the ‘great grandmother of the beauty world.’ Points lacked strategic purpose, creating complexity and confusion. With 40% points breakage, rewards were largely unachievable, active engagement was limited to once a year, and tiers were top-heavy with the fewest members sitting in the lowest tier. There was no dedicated program P&L and insufficient KPI tracking to measure ROI.

Solution

Loyalty & Reward Co deployed its proprietary Adaptive Loyalty Framework™ to conduct a comprehensive audit of Shiseido Thailand’s loyalty program, evaluating it across four core pillars: program design, economics, operations and governance, and member lifecycle management. The engagement included stakeholder interviews, a review of existing program documentation, quantitative market research via member surveys, competitor analysis, and data analysis. Key recommendations included expanding the bonus points offering, introducing a dedicated rewards store to improve points yield, recalibrating status tiers to align with natural spend patterns, and injecting tangible rewards at lower tiers to drive motivation. At the higher tiers, the focus shifted to exclusivity and emotional stickiness through differentiated ‘x-factor’ elements. L&RC also recommended formalising KPIs, establishing ROI measurement practices, developing a dedicated program P&L, increasing program visibility across stores and digital channels, improving the onboarding process, and laying the groundwork for future personalisation infrastructure.