In times of economic uncertainty, retaining customer loyalty is critical for startups. As inflation rises and interest rates fluctuate, maintaining a solid client base can provide stability when other aspects of the business may be volatile. Leveraging consumer insight is crucial to enhance patronage and drive long-term success. 

Explore eight ways startup companies can utilise customer data to strengthen their loyalty programs during challenging economic periods.

Segment customers for targeted engagement

Customer segmentation is a powerful tool for building loyalty, particularly during tough economic times. Startups can use existing consumer data to categorise their audience into specific groups based on behaviour, purchase history and demographics. This strategy allows businesses to send personalised messages that resonate with each segment.

For instance, a startup in Indonesia offering digital services can analyse purchasing behaviour and target high-frequency users with exclusive discounts or rewards. On the other hand, shoppers who engage less frequently may benefit from loyalty incentives that encourage more consistent interaction. Tailored messaging can work wonders and make patrons feel valued, driving continued patronage despite tight budgets.

Monitor shifts in customer spending patterns

Economic challenges often result in changes in consumer spending habits. Startup businesses can stay ahead by monitoring purchasing behaviour shifts and making informed company decisions through data analytics. They can adjust their loyalty strategies by understanding how these trends impact spending. 

Ensuring data entry accuracy is crucial during this process, as errors in data entry can lead to incorrect customer insights and misguided strategies. Investing in tools and an adequate number of qualified personnel to maintain accurate data can prevent costly mistakes.

For example, during periods of inflation, buyers may be more price-sensitive and reduce spending on non-essential items. A Philippine e-commerce startup selling luxury goods could use this data to adjust its loyalty program, offering more budget-friendly options and exclusive offers to retain price-conscious clients. 

Leveraging purchasing data can help brands ensure their efforts remain relevant and attractive to their target audience, even when customer priorities shift.

Use predictive analytics to anticipate customer needs

Predictive analytics can be a game-changer for startup companies looking to strengthen consumer loyalty. Using customer data, predictive models can anticipate future behaviour, helping businesses stay one step ahead of their shoppers’ needs.

A Malaysian fintech startup, for instance, could use historical data to predict which buyers are likely to scale back on certain services due to rising interest rates. With this insight, the company can offer personalised retention campaigns — such as discounts or enhanced features — to keep clients engaged and loyal.

Also Read: Why fintech companies should learn about customer retention from e-commerce companies

A proactive approach can reduce churn and increase customer satisfaction, especially during economic uncertainty when patronage may waver.

Enhance personalisation for stronger emotional connections

Personal connections often play a significant role in business relationships. Startups can leverage shopper data to create more personalised and meaningful interactions, fostering stronger emotional ties with buyers.

For example, a Thai beauty shop could use purchase history and preferences to offer personalised product recommendations, early access to new collections or even customised loyalty rewards based on past behaviour. Personalisation shows clients that the brand understands their individual needs, which enhances emotional connection and patronage.

Strong connections can be the difference between retaining or losing a customer in challenging economic times. When consumers feel a genuine relationship with a business, they are more likely to stay loyal, even when their spending ability is affected.

Leverage social listening and customer feedback

Understanding what shoppers say about your products or services on social media and through direct feedback can offer valuable insights that improve your loyalty campaign. Startup companies can determine and track buyer sentiment by monitoring social media platforms, online reviews and customer support interactions.

A Vietnamese tech startup, for example, might notice through social listening that many of its users are dissatisfied with its current reward offerings. This feedback can be used to adjust rewards and introduce new features that align with consumers’ expectations to ensure they feel heard and appreciated.

Additionally, integrating shopper feedback loops into loyalty programs — through mechanisms like surveys or rewards for reviews — can give patrons a greater sense of involvement, ultimately fostering stronger loyalty.

Optimise rewards to match current consumer priorities

Economic conditions can significantly impact what clients value in reward systems. By analysing data on customer preferences, brands can refine their loyalty strategies to better meet buyer needs during tough economic times.

A Singaporean retail startup, for instance, may find that consumers prefer practical rewards, such as discounts or cashback, over luxury perks. Based on this insight, the business can shift its loyalty efforts to emphasise cost-saving rewards that appeal to financially-conscious patrons.

Also Read: Why a customer-centric digital marketing strategy is the way to go?

Optimising rewards based on real-time data ensures that your loyalty program remains relevant and appealing, even as client priorities evolve in response to economic challenges.

Track customer lifetime value (CLV) to prioritise high-value customers

Customer lifetime value (CLV) is a metric companies can use to identify their most valuable clients. During economic downturns, retaining high-value shoppers becomes even more important as these individuals will likely provide the most revenue over time.

Businesses can use CLV data to prioritise these patrons in their loyalty campaigns by offering exclusive rewards, personalised offers or priority access to new products. For example, a Vietnamese food delivery startup may identify its top consumers and offer them exclusive promotions or early access to limited-time menu items, strengthening their connection to the brand.

By focusing on high-value clients, businesses can ensure that their loyalty strategies deliver maximum returns during times of economic uncertainty.

Adjust marketing channels based on customer data insights

Shopper data can also inform which marketing channels are most effective for communicating loyalty programs. Some organisations may find that certain platforms, like Facebook or WhatsApp, drive higher engagement than others. This insight can be critical since social media platforms are integral to everyday communication.

For instance, a startup in Indonesia may discover that its buyers engage more on Instagram than email. The business can then improve participation rates and deepen client relationships by shifting its communication efforts to Instagram.

Optimising your marketing channels based on data ensures that your loyalty efforts reach the right customers at the right time on their preferred platforms.

Strengthen loyalty through data-driven insights

Retaining loyal clients is essential for startup resilience in economic uncertainty. By leveraging shopper data, businesses can fine-tune their loyalty strategies to meet evolving buyer needs, build stronger emotional connections and anticipate future behaviours. Whether through segmentation, personalisation or predictive analytics, data-driven insights enable brands to adapt quickly and stay ahead in challenging times.

By prioritising customer loyalty, startups across Southeast Asia can build a solid foundation for long-term success, even when facing economic challenges.

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South Asia secured the top spot in Asia with the most significant potential for fintech lending, followed closely by Southeast Asia, a new analysis by UnaFinancial reveals.

South Asia ranked top with a multivariate average score of 1.152 points, while Southeast Asia secured 0.806 points.

Also Read: AI and automation: Transforming India’s lending landscape

Despite having the lowest digital penetration (37 per cent) of smartphone owners among Internet users and 34 per cent of digital payments users, South Asia benefits from a large share of the young population and strong fintech industry development. The region also stands out with 43 incubators for alternative lending companies and 118 funding rounds in the industry, making it the leading region in fintech investments and startup activity.

Southeast Asia boasts a strong digital infrastructure, with 59 per cent of the population using digital payments, 62 per cent of smartphone owners, and 24 incubators supporting the growth of fintech companies. Although the average income per capita (US$42) and investments in the sector are lower than in other regions, the high digital adoption and many alternative lending companies signal solid future growth prospects.

In comparison, West Asia and East Asia show lower growth potential. West Asia ranked third with a score of 0.773. The region benefits from the highest income per capita (US$66) and strong investment (US$2.31 billion). However, it still lags in establishing fintech companies and incubator support.

East Asia, with a score of 0.698, excels in digital payment usage (93 per cent) and mobile connectivity (124 per 100 people) but faces challenges due to a smaller share of young population and a reliance on traditional financial institutions.

“As fintech lending continues to develop across these regions, we can expect rapid growth driven by digital adoption, increased investment, and the expansion of alternative lending services. South and Southeast Asia are particularly well-positioned to lead this trend, paving the way for a more inclusive financial future,” analysts of UnaFinancial said.

The study used a multivariate average methodology to compare the fintech lending potential across South, Southeast, West, and East Asia. Central Asia was excluded from the comparison due to its emerging stage of fintech lending development.

Also Read: How Generative AI will advance embedded lending

The study ranked regions based on 14 critical factors, including mobile broadband subscriptions, average income, internet usage, smartphone penetration, investment in alternative lending, share of the young population, number of incubators for the alternative lending sector, adoption of digital payments, access to bank accounts, access to formal credit, demand for borrowed funds, number of alternative lending companies and funding rounds.

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Image credit: 123RF.

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Qarbotech, a Malaysian startup that enhances photosynthesis via advanced carbon quantum dots material, has raised US$1.5 million in funding from 500 Global, Better Bite Ventures, ID Capital, EQT Foundation, and Epic Angels Limited.

The seed extension round will enable Qarbotech to scale its operations in Malaysia, Indonesia, Thailand, and Vietnam, where demand for advanced agritech solutions is surging.

Also Read: Greentech revolution: Catalysing software’s success to drive a sustainable future

“This investment will allow us to ramp up production and bring our patented solutions to more farmers across the region, empowering them to produce more with less environmental impact,” said Amirul Merican, COO of Qarbotech.

As part of its expansion, Qarbotech is opening its first manufacturing facility in Puchong, Malaysia. The facility can produce 100,000 litres of QarboGrow monthly.

Qarbotech is a sustainability and green-tech company. Its flagship product, QarboGrow, is a photosynthesis enhancer that helps farmers increase crop yields by up to 60 per cent while reducing their environmental footprint. Thus, the firm promotes sustainable agriculture solutions that contribute to carbon sequestration.

“Our product QarboGrow is a breakthrough in plant science, using organic, biocompatible carbon quantum dots to dramatically boost light absorption and increase crop yields by up to 60 per cent. This enhancement addresses food security challenges and optimises fertiliser use, reducing the need for excessive fertilisation that could lead to soil degradation and pollution,” Chor Chee Hoe, CEO of Qarbotech, said.

In Indonesia, Qarbotech’s pilot project with PT Iceh Agro Indonesia covering 400 hectares of rice fields demonstrated an increase of up to 1 tonne per hectare in rice yields and a substantial boost to farmer incomes.

Also Read: How AI and automation can shape the future of farms

The firm’s carbon quantum dot technology also addresses carbon sequestration by enabling plants to absorb more carbon dioxide, reducing greenhouse gas emissions.

“Can you imagine the same farmer with the same land, labor and workflow, being able to produce up to 60 per cent more food? Qarbotech’s photosynthesis multiplier does exactly that. We believe their technology will be mission-critical to regions vulnerable to climate change,” shared Khailee Ng, Managing Partner, 500 Global.

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Urban infrastructure is often prone to wear and tear, leading to safety risks and costly repairs if not properly maintained. Traditional inspection methods can be invasive, time-consuming, and inefficient, making it difficult to detect hidden structural issues. Singapore-based WaveScan addresses this challenge by offering a non-destructive, AI-powered inspection solution that enables cities to monitor and manage infrastructure more effectively, ensuring safety, longevity, and sustainability.

A spin-off from A*STAR, WaveScan harnesses electromagnetics-based sensor technology and AI to offer a cutting-edge non-destructive testing (NDT) solution for urban infrastructure. Their approach ensures the safety, resilience, and sustainability of cities by providing data-driven insights for managing and maintaining critical infrastructure.

By focusing on NDT, WaveScan aims to extend the lifespan of infrastructure, enhance safety standards, and promote efficiency in urban development.

Founded by Dr. Kush Agarwal in 2018, WaveScan has benefited from strong support from A*STAR. Senior scientists contributed to the development of its core radar sensor technology and signal processing algorithms. The company has grown through government grants, awards, and a successful SEED funding round in 2021.

Also Read: BuildHub PH: Pioneering the future of construction

Now boasting a team of 11 professionals, WaveScan is at a pivotal point, with recurring revenue contracts and a hybrid business model of equipment sales, leasing, and technology-enabled services. As they expand, the company is ramping up operations to manage its increasing customer base.

Learn more about them in this email interview with Dr. Agarwal. The following is an edited excerpt of the conversation.

What are the problems that you aim to solve with Wavescan, and why is your solution better than the existing alternative?

Today’s built environment industry uses destructive testing to precisely measure embedded or concealed structures, such as metallic rebars inside concrete slabs and brackets holding facade panels. This is mainly because most non-destructive testing (NDT) technologies lack spatial resolution, meaning they cannot scan and image accurate dimensions and conditions of the embedded/concealed structures.

Over the years, we have developed a high-resolution microwave holographic imaging (MHI) technology that enables the needed spatial resolution for these target use cases to conduct diagnostics imaging rather than pre-screening and minimise destructive testing.

Since our scanning technology is fully contactless, we are automating the inspection processes using robotics, hence also addressing the manpower and safety issues in our Built Environment industry.

Can you tell us about the product development journey at WaveScan?

Since the inception of WaveScan, our core focus while developing the product has been understanding the industry requirements and end-users. Most of our early team members were scientists and researchers, so we had the necessary skills to develop the tech but needed to gain more profound know-how of the Built Environment industry’s pain points.

Also Read: VinFast to soon begin construction of US$500M EV factory in India

Since the start, we have been working closely with the Building Construction Authority (BCA) to learn about these industry technology gaps and Singapore’s regulations around structural and facade inspections and showcase our capabilities to get expert feedback. Once we had a minimum viable product (MVP), we started test-bedding it with various commercial clients for their diverse use cases.

The technology was extensively advanced during those phases before we commercially launched the first generation of our scanner product. Since this electronic hardware system uses electromagnetic waves, the scanner underwent various regulatory compliance tests before achieving the Certificate of Conformity Europe (CE) mark and later Infocomm Media Development Authority (IMDA) registration for registration in Singapore.

Please tell us more about your users or customers!

The built environment industry is fast evolving, and technology is being adopted to address its diverse needs.

Since our MVP stage, we have worked closely with early adopters to test-bed, advance, and sometimes customise our tech solution to meet specific inspection requirements. Our customers comprise private construction, inspection services, facilities management (FM), and professional engineers (PE) firms, to Government agencies such as the Housing Development Board (HDB), all of whom have been incoming requests, meaning we do not do marketing and pre-sales at the moment.

Also Read: VinFast to soon begin construction of US$500M EV factory in India

We actively engage in our Built Environment’s ecosystem and get introduced to these companies via referrals or word of mouth. Our current focus is on scaling up nationally with HDB with ongoing deployments on water leakage detections using our first-of-kind IngressScan tech solution. We also have a few ongoing overseas engagements, such as nuclear power plants and tunnelling works, where end clients are engaging with us for our accuracy in scanning the exact diameters and locations of rebars.

What is your funding history?

At WaveScan, we have been extremely fortunate to receive robust support from Singapore’s government agencies, including non-dilutive grants and startup awards totalling over US$2 million. This enabled us to raise capital selectively until the pre-product was ready and successfully benchmarked and validated by commercial customers.

We raised our SEED Round in 2021, using the funds to clear the regulatory tests, achieve CE marks, and launch the commercial product in early 2022. Over the last two years, we have built our revenue numbers to establish year-on-year growth and break-even revenue last year.

We are fundraising to fuel the company’s growth with a customer base in six countries outside Singapore, including Hong Kong, Japan, India, Australia, China, and Saudi Arabia. Financial prudence is vital to building deep-tech companies, which need longer go-to-market time and break-even and inflexion points in business, and we have followed this principle carefully since the start of WaveScan.

What is your big plan for 2024 and beyond?

We are now at a scale-up stage with established commercial use cases of our technology in the Built Environment industry.

Earlier this year (2024), we started piloting our IngressScan2122, a water leakage detection solution with HDB. We plan to roll it out nationwide next year!

Also Read: Indonesia’s construction-tech startup Gravel secures US$14M

Building upon our successful engagements in Singapore and similarities in industry regulations, we have incorporated our Hong Kong subsidiary. We are working on replicating our use cases with industry stakeholders there.

This year, we have also engaged with major oil and gas companies outside Singapore, particularly in Australia and Saudi Arabia. We have already been working with the top three in Singapore.

Our significant plans for 2024 and beyond are now to scale globally in the strategic target markets and build up ARR clients.

We also look forward to continued BCA support and guidance and events like International Built Environment Week (IBEW) 2024, which help us network and spread the word. While at home, as a Singaporean home-grown construction tech startup, we want to grow nationwide with HDB and help them solve resident’s issues, improving the turn-around time of complaints to address the root causes, enhancing the quality of life in public housing and hence our technology benefiting lives of everyday Singaporeans.

That would be the right way of giving back to Singapore’s taxpayers, as we’ve benefited from various government grants.

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Image Credit: Wavescan

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Imagine you’re dining at a fancy restaurant. The ambience is perfect, and the food looks delicious, but the waiter gets your order wrong, forgets your drink, and you’re left waiting ages for the bill. How would you rate that experience? A solid five-star or a begrudging two?

Now, flip this scenario to your contact centre: every call, chat, or email is a “dining experience” for your customers. And just like in the restaurant, every interaction shapes your customers’ perception of your brand.

This is why tracking Customer Satisfaction (CSAT) is your golden ticket to understanding what’s working, what’s not, and where you can sprinkle a little more magic.

What’s CSAT, and why should you care?

CSAT, or Customer Satisfaction Score, is essentially the “How did we do?” question you ask your customers after they interact with your support team. It’s the equivalent of handing them a feedback card after every service. While it might sound simple, CSAT is the pulse check your contact centre needs to ensure your customers are happy campers. After all, a happy customer is a returning customer, and a returning customer is good for business!

The domino effect of ignoring CSAT

Neglecting CSAT is like ignoring a leaky tap; the trickle might not seem like much, but eventually, it floods your house. Poor CSAT scores can spiral into negative reviews, lost business, and a reputation that’s harder to fix than a dodgy plumbing job. When customers feel unheard, they’re not just leaving; they’re slamming the door behind them and telling everyone about it.

Take Jane, for example. Jane calls your support team about a billing issue. The agent is unhelpful, Jane leaves frustrated, and next thing you know, she’s venting on social media. Now, it’s not just Jane who’s unhappy, but every potential customer who reads her post. This is where tracking CSAT comes into play—it’s your early warning system that things need to change before they escalate.

How can you improve CSAT? Let’s break it down

Personalisation is key

When customers feel like just another ticket number, dissatisfaction isn’t far behind. Use their names, understand their history, and tailor your responses. It’s like adding a personal touch to a handwritten letter—it feels good. One way to get this right is by using tools like CRM integrations that give your agents a full view of the customer’s journey.

Speed up response time

In the age of instant everything, waiting feels like forever. Ensure your agents are equipped to handle queries quickly and accurately. Think of it as being the Usain Bolt of customer support—fast, efficient, and leaving a lasting impression.

Automate support – your secret weapon

Automation isn’t about replacing humans; it’s about making them superhuman. Imagine a world where chatbots handle the repetitive stuff, AI tools assist with suggested responses, and your agents only step in when human touch is truly needed. This frees up your agents’ time to focus on complex queries and build rapport with customers. It’s a win-win; customers get quick responses, and agents get to shine in their areas of expertise.

Also Read: Why fintech companies should learn about customer retention from e-commerce companies

Listen and learn

Use feedback, good or bad, as a roadmap to improvement. If 10 customers say your hold music is annoying, maybe it’s time to change the tune—literally. Continuously tweak your processes based on what customers are saying, and watch your CSAT scores soar.

Automating the path to higher CSAT

Automation is not just a buzzword; it’s the backbone of a modern contact centre. With AI-driven solutions, you can analyse conversations in real time, predict customer sentiment, and even suggest the best next steps for your agents. It’s like having a crystal ball that guides you to deliver exceptional service every time. Automation also helps keep a close eye on those all-important CSAT scores, spotting trends and problem areas faster than any human could.

Plus, automation tools can seamlessly collect CSAT data at the end of each interaction, giving you a constant flow of insights without bothering your agents to chase feedback. It’s like having a 24/7 feedback loop that never sleeps.

CSAT isn’t just a number — it’s your brand’s reputation

Tracking CSAT is your direct line to understanding customer happiness. It’s not just about numbers; it’s about using those insights to fine-tune your contact centre into a well-oiled, customer-pleasing machine. So, don’t treat CSAT as an afterthought; make it your priority. Because when your customers are smiling, your business is winning—and that’s a 5-star scenario we all want to be part of.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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