(Singapore, Jan 22, 2020) Cashback remains one of the most popular strategies for building customer loyalty, according to a report released by Fave, one of Southeast Asia’s major digital merchant platforms.
The report called “2020 retail trends in Singapore: The merchant’s guide to profit-boosting strategies & smarter business growth” shows that the rise in mobile Internet usage, e-wallets, and cashless payments is paving the way for digitally empowered merchants.
An increasing number of offline merchants across various retail segments is recognizing the potential of cashless payments for business growth and is eagerly making the transition to take their business online.
Commenting on the findings, Joel Neoh, Co-Founder and CEO of Fave said, “Our research shows that transformation is occurring across Singapore’s retail in response to changing customer preferences, advancements in technology and the evolution of payment methods. “
The report is based on analytical data compiled from more than 10,000 merchants on Fave’s digital merchant platform, Favebiz between 1 January to 31 December 2019, and is supported with external research on digital payments in Singapore. In line with the country’s transition to a cashless economy, the report delves into the timely topic of empowering offline merchants to recognize the prevalence of digital payments in achieving sustainable growth.
Findings from the research show that cashback remains one of the most popular strategies for building customer loyalty and increasing repeat customers. Research from Fave indicates that cashback drives up to 70% of repeat customers and has the potential to optimize non-peak hours sales figures by up to 2.5x times.
Besides, merchants in Singapore are gradually gaining a competitive edge by becoming more data-driven in their business decisions. They are analyzing sales trends, customers’ spending habits, and devising promotional strategies to optimize their non-peak hours. Ninety-eight percent of merchants on Favebiz found uses for actionable data insights with one in three merchants being able to correlate insights to their marketing spend and strategy, resulting in higher ROI.
The report also finds that at least one in three Food and Beverage (F&B) outlets in Singapore accepts cashless payments. The rise in mobile Internet usage, e-wallets, and cashless payments is paving the way for digitally empowered merchants. An increasing number of offline merchants across various retail segments is recognizing the potential of cashless payments for business growth and is eagerly making the transition to take their business online.
To date, Fave is available across 35 cities in Singapore, Malaysia, and Indonesia with over 30,000 merchants on its platform specializing in F&B, beauty & wellness, retail, services, fitness, travel.
