PROPOSED IMPROVEMENTS FOR REWARD PROGRAM OF A DIGITAL WALLET COMPANY

• Main Author: Aryun, Qanitan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77581
• Institution: Institut Teknologi Bandung

In order to compete due to the implementation of QRIS, digital wallets in Indonesia are racing to add values for their merchants and customers. One segment that is not tapped on to is loyalty where it enables merchants to retain their customers and users to re-purchase at their preferred store. However, many merchants don't have enough knowledge on building loyalty strategies. On the other hand, customers who already have good knowledge on loyalty programs, received lack of engagements from the merchants. In this study, authors analyze the phenomenon using external and internal analysis with a case study of DANA Loyalty. The research is done through quantitative methods by spreading questionnaires to respondents. In addition, a qualitative method was added through in depth interviews with business owners regarding their challenges on implementing loyalty strategy. The results show that there is market potential in creating loyalty programs for the FnB category as it is one of the most attractive programs for users, while merchants require a platform for them to explore and automate their loyalty program. The proposed strategy is analyzed using several frameworks, resulting in the innovation of Business Model Canvas where the value propositions will be creating a seamless loyalty platform for users and merchants, a new revenue stream for platform fees, and new customer channel of community engagement for merchants. The strategy can be achieved by delivering products in iteration, increasing brand awareness, research on technology, and doing market expansion.