Weak Customer Retention Programs in the Philippine Market

("Personalize/Humanize the loyalty experience—build stories, create memorable experiences, and promote genuine advocacy.") 

Weak Customer Retention Programs in the Philippine Market

In the Philippine business scene, many companies still prioritize acquiring new customers over nurturing the loyalty of those they already have. It's common to see reactive loyalty tactics, like offering discounts only after complaints or launching last-minute promos when the competition is already making moves. This approach often results in high customer churn, especially in highly competitive areas like telecom, retail, and digital services. A report by Kantar Philippines emphasizes that only 38% of Filipino consumers feel that brands genuinely understand and reward their loyalty. This indicates a clear gap in effective retention strategies—companies tend to wait too long before showing appreciation or personalizing the customer experience. As a result, customers are more likely to switch to competitors who offer more engaging and customized experiences. As one study puts it, “In the Philippines, consumers go beyond looking for points—they are looking for connection.”

Insight: Retention is More Cost-Effective than Acquisition

Research from the Harvard Business Review, supported by local experts like the Philippine Marketing Association, shows that acquiring a new customer can cost anywhere from 5 to 25 times more than retaining an existing one. Despite this, many local marketers continue to rely on generic loyalty cards or one-size-fits-all promotions. Instead, businesses should consider investing in tools like predictive analytics, customer segmentation, and emotional branding. Creating genuine connections—where customers feel seen, heard, and appreciated—has been proven to boost repeat purchases and overall customer lifetime value. A prime example is Globe Telecom. They shifted their loyalty program from simple point systems to more experience-driven engagement, such as providing access to GMovies and lifestyle perks through their Globe Rewards app. This change boosted app activity and helped keep customers loyal, even when the market was crowded. In contrast, smaller businesses and those with outdated, purely transactional loyalty programs often face high churn rates, especially as Gen Z and millennial Filipinos now expect more personalized, authentic brand interactions. 

To improve retention, companies should consider the following steps: 

1. Focus on beyond rewards—prioritize personalization, timely engagement, and listening to customer feedback. 

2. Invest in technology—use advanced CRM and data analytics to monitor and anticipate customer behavior. 

3. Personalize/Humanize the loyalty experience—build stories, create memorable experiences, and promote genuine advocacy. 

4. Regularly track ROI—compare the costs of retention strategies against acquisition to ensure efficiency. By adopting these approaches, brands can promote deeper connections and long-term loyalty in the Philippine market.

Citations

• Kantar Philippines (2023). Loyalty & Engagement Study.

• Harvard Business Review (Reichheld & Sasser). The Economics of Customer Retention.

• Philippine Marketing Association (2024). Trends in Filipino Consumer Behavior.

• Globe Telecom Press Release (2022). How Globe Rewards Reinvented Customer Loyalty in the Digital Age.