As Malaysia gears up for its annual Merdeka Day and Malaysia Day celebrations, businesses across the nation find themselves in a prime position to engage with consumers on a deeper, more meaningful level. Merdeka Day, celebrated on August 31st, is steeped in historical importance and national pride, painting an ideal backdrop for businesses and brands to align their messaging with the patriotic sentiments of their customers. Meanwhile, Malaysia Day, observed on September 16th, celebrates unity in diversity, offering businesses a platform to emphasize inclusivity and community cohesion.
It’s easier said than done however; times have changed and merely offering monetary discounts may not suffice in effectively engaging modern consumers, who are increasingly discerning in their purchases. That said, businesses can create a cohesive narrative that appeals to a wide-ranging national audience by crafting a unified campaign that spans both occasions.
Payments innovation could be the key to help Malaysian businesses achieve their potential, and here’s how.
Harnessing Payments Data for Localised Promotional Strategies
American business theorist, economist, and management consultant W. Edwards Demming certainly did not mince his words when he said, “In God we trust. All others must bring data.” In today’s digital age where gluts of data are generated every passing second, businesses that learn how to harness first-party data like payments effectively will be able to build lasting relationships with their customers.
Payments data offers a picture of customers and their purchases in real-time, allowing businesses to investigate their customer segments, understand shopper behavior, and test what works best for the customers. Frameworks like RFM (Recency, Frequency, Monetary value) analysis help businesses to split the customer base to find a frequent visitor segment. Within this segment businesses can start to analyze the average transaction amount online or in stores, or start to catalog what behaviors lead to loyalty. Identifying your valuable customers is the first step to tailoring your strategy.
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In the context of the Merdeka period, businesses can get an accurate sense of their valuable customers’ likes and dislikes in real time and adjust their strategy immediately, e.g. offering tailored discounts on certain homegrown products from local sellers that are popular among their customer base. Retailers can go a step further by integrating themes like the 67th year of independence or iconic milestones such as 1957, which creates a meaningful connection for customers and bolsters customer loyalty.
Personalized rewards are crucial in boosting loyalty, especially in Malaysia. The Adyen Index 2024 reveals that 64% of Malaysian consumers are inclined to download a retailer’s app to access superior loyalty incentives, surpassing the global average of 58% – underscoring the importance of leveraging data to identify and reward loyal customers, creating promotions that not only attract but also retain them.
Turning to Payments Innovation for a Stronger Bottom Line
In the fast-paced world of retail, especially during peak sales periods like Merdeka Day and Malaysia Day, operational efficiency is paramount. A critical aspect of this is ensuring that payment systems are robust enough to handle the high transaction volumes typical of these sales periods. Data-driven insights can support businesses in optimizing their payment processes, reducing cart abandonment, and enhancing the overall shopping experience.
While traditional Point of Sale (POS) terminals remain relevant, innovations like handheld POS devices and Tap to Pay on Android and iPhone are unlocking new efficiencies for retailers. These technologies help minimize checkout queues during peak periods, ensuring a smoother, more enjoyable shopping experience for customers.
Getting the payment method mix right is also essential to optimizing sales. Our research also found that 63% of consumers in Malaysia use mobile wallets for payments – the highest percentage amongst all 26 surveyed markets. Furthermore, 36% of Malaysian consumers say they no longer carry a physical wallet, relying instead on mobile-enabled payment methods. This tells us that offering the right mix of payment options is essential for successful sales.
Empowering Businesses During Merdeka, Malaysia Day, and Beyond
As Malaysia prepares to celebrate Merdeka Day and Malaysia Day, businesses have a golden opportunity to connect with consumers in ways that go beyond mere transactions. By leveraging the power of data, businesses can craft campaigns that increase customer satisfaction, build loyalty, and ensure long term success, while resonating deeply with the national pride and unity these occasions inspire. In doing so, they not only honor the Malaysian spirit, but also contribute to a thriving, customer-centric retail environment in Malaysia.
