MEMBER.ID, a rewards and loyalty platform, has secured an undisclosed amount of seed funding in a round led by East Ventures. Ismaya Group also backed the round.
The investment will enable MEMBER.ID – a platform for converting various loyalty points to various miles and redemption schemes – help Indonesian companies increase consumer retention via a tailored loyalty program solution.
It operates as an intermediary for both businesses and members of its customers base, acting as an end-to-end solution for businesses, providing consulting services to programme design to building and operating a business’ loyalty program.
This helps turn cost centres into profit centres and drives an increase in repeat sales. The Ismaya Group is the first corporate client of the company, with MEMBER.ID currently working to build out their loyalty program across various sectors.
Marianne Rumantir, CEO and co-founder of MEMBER.ID states, “Retaining customers is 5 to 10 times less expensive than acquiring a new one. Customers in Indonesia have a tendency to be loyal to discounts instead of being loyal to a brand because most businesses are pressured to focus on making quick sales. They don’t realise this can be an issue in retaining customers and will actually cost them even more in the long run.”
Currently, Indonesian consumers are geared towards cost savings, with existing loyalty programs being both complicated and failing to meet customer needs. For Indonesian brands to achieve long-term customer loyalty through value provision, they require better insights into evolving customer behaviour.
According to a media release, ever since MEMBER.ID took over and redesigned Ismaya Lifestyle Card Loyalty Program in late 2016, its members have grown by over 300 per cent in a 6-month period after introducing a tier-based points system which created real benefits for their members.
Willson Cuaca, Managing Partner of East Ventures added, ”It’s been difficult to find a loyalty platform with a holistic approach in Indonesia. Every merchant is in their own silo and consumers struggle to remember every loyalty program’s benefits. We hope to change this and MEMBER.ID’s team is in the right position to do so.”