Was founded in 2019, OttoPoint aims to help business owners increase customer loyalty while attracting new customers. The platform offers a variety of loyalty program services aimed at companies in improving marketing programs.

OttoPoint and OttoPay are part of the fintech division under OttoDigital Group.

OttoPoint CEO James Hamdani revealed to DailySocial, in Indonesia, loyalty programs is rapidly growing. In the past few years, many brands started to offer discounts to keep consumers using their products or services.

“However, companies have started to apply various forms of other loyalty programs, such as cashback, points, stamps, gamification, etc. This means that business competition is getting tougher to attract consumers in Indonesia,” James said.

To begin with, OttoPoint focused on coalition-based customer loyalty programs by cooperating with various brands and companies to be in a more efficient and profitable ecosystem.

This program is applied in the form of points and reward catalogs. It provides brands with advantage, as they don’t have to build a loyalty system from scratch. You don’t even need to acquire partners one by one to bring rewards to consumers.

“For approximately a year in Indonesia, on average, our issuer partners have succeeded in increasing transaction frequency by 25% and transaction volume by 35% within three months. In addition, more than 300 thousand users have experienced the benefits of OttoPoint until June 2021,” James added.

Leading features

One of the loyalty programs that is considered to be the right type for the brand is coalition. Several brands join the same loyalty ecosystem. Business players can make integration and no longer have to bother building a system from scratch.

“In general, all types of business definitely need consumers to support the continuity of its company. Of the various types of consumers, the most potential and profitable type for companies is loyal consumers. It is not only because they will regularly contribute to sales. However, as they also the ones who will potentially recommend the company’s brand to their closest circle,” James said.

As a one-stop solution for loyalty program service providers in Indonesia, OttoPoint claims to have a significant difference with other platforms. Other providers will usually focus on only one type of service, such as reward points or stamps only. OttoPoint provides a variety of service solutions, ranging from coalition loyalty programs, OttoStamp, to OttoGifts.

“In addition, OttoPoint also provides a choice of loyalty program services that can be customized (white label). For large corporate groups who want to implement a loyalty program and align it with the specific needs of the various brands in the group. This service can be the best answer to help companies to apply point rewards with a close-loop,” James explained.

Loyalty program

As a form of marketing strategy that is sustainable and long-term oriented, it is predicted that loyalty programs will grow even more in the future. One of the reasons is that, as long as there is a commercial business going on, they will need a loyalty program to build loyal customer base that are profitable for the company. On the other hand, through the loyalty program, the company can also find out more in-depth customer insights.

In a research released by Wirecard revealed, 75% of customers finally decide to make a repurchase, after getting a reward from a certain brand. For James, it indicates that the potential for rewards from the loyalty program is highly effective.

“Especially in the current pandemic situation and with regulations to reduce the number of consumers who can come to the store. In order for the business to continue, companies must maximize their loyal customer database to support the company’s income,” James said.

The research also revealed that the rewards will trigger them to make more purchases. Almost all respondents said that after having a good loyalty program experience, they are more willing to receive offers and notifications from the brand. They are also willing to follow the brand’s social media accounts, after receiving positive rewards from the brand.

An interesting note found in the research is that most customers use apps and web apps for incentives, and many say that apps can help simplify the way they manage rewards. It is crucial, indeed, for the platform to have tools that function well and work seamlessly, therefore, customers can manage and monitor reward points.

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Original article is in Indonesian, translated by Kristin Siagian