Chapter 4: Personalization and loyalty
Consumers expect tailored experiences; businesses need connected data
Consumers increasingly expect personalized experiences, like tailored recommendations and exclusive discounts. But some still view marketing based on their browsing or purchase history as intrusive. While loyalty programs are appreciated by many, 55% of Malaysian shoppers feel that brands often fall short of their expectations. At the same time, businesses are betting on advanced personalization to drive revenue growth in 2025.
In Malaysia, brands that deliver flexible and personalized promotions across sales channels earn repeat business. 66% of consumers say that they'd be more loyal to a retailer that allows them to buy things online and return them in-store. However, without connected data systems and a unified commerce approach, many will find it difficult to meet shoppers' expectations for consistent, streamlined experiences.
Finding 01
Consumer opinion is divided on personalization
When it comes to personalization, consumers are undecided. They say they want more personalized promotions from retailers, but not product recommendations. They expect tailored offers; but they also find data tracking by retailers, or AI, intrusive. Behind these contradictions is a clear message: Consumers are willing to share their data, as long as there’s something in it for them. This balancing act remains consistent with our research from 2024, where Malaysian consumers also showed a strong desire for personalized discounts (67%) alongside concerns about data usage. Discounts and meaningful promotions make the trade-off feel worthwhile.
Finding 02
Unified commerce businesses connect the data dots
While consumers may be conflicted about data tracking, retailers are clear on its value. Understanding customer behavior and preferences remains a top priority for driving revenue and loyalty in 2025, and payment data plays a key role. In Malaysia, 72% of omnichannel retailers operate with a unified commerce platform, giving them a single view of every customer and enabling flexible transactions across all sales channels. Most businesses already recognize the power of payment data to fuel these insights. In our 2024 report, businesses in Malaysia reported 14% higher revenue growth with unified commerce.
Finding 03
Loyalty is not meeting expectations, yet
Loyalty programs work in theory. Consumers are drawn to brands that offer discounts through a loyalty program, and many are willing to download apps to get rewards. However, in practice, the experience for shoppers is disappointing. Malaysian consumers feel this more deeply than other APAC markets – 58% of shoppers find programs to be more hassle than they're worth and their rewards irrelevant. But there is cause for optimism. While businesses in Malaysia may be slower to adapt to demands of consumers, their commitment to understanding and delivering more relevant experiences to their customers grew two times year on year. So, customers can expect loyalty offerings to improve.
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