Empower VIP Customers to Redeem Loyalty Prizes At Ease
[Published: Aug, 2024]1. Background
1.1 Project overview
This project spans 5 quarters and includes 3 sub-projects: the VIP membership page, the Loyalty Point Store, and the Virtual Reward Management feature.
The VIP service expanded from 180+ to over 10K users, increasing membership awareness and resulting in 52-53% of users redeeming rewards.
Year: From 2022 to 2024
My Role: UX Designer and responsible for ideation and user experience design
Contributors: Project Manager, UX & UI Designer, Visual Artist, Engineer.
1.2 Product Vision
When it comes to live stream room, there’s nothing can showcase one’s identity by showing their special badge or phenomenal entrance animation. Users can earn special badges, text frames, and entrance animations through a reward system. By making purchases on the app, users can earn points to get these rewards and even level up their VIP status.
The animation that displayed in the live stream room.
Badges and comment frames can be displayed in chat room for decoration and added attraction.
However, users are complaining that it’s inconvenient to contact customer service every time they want to change their loyalty prizes. And it also creates a significant workload for internal human resources.
We earn approximately 98% of our profit from purchases made by just 1% of users. It's crucial to understand and address their needs
Official Line ID account for users to request redemption.
Glance of the redemption prize.
Full details of the redemption prize.
1.3 Define User Needs
After some digging and observation, we identified the following scenarios and causes:
| Factor | Result |
|---|---|
| Many products, different promotional offers in each country. | Monthly recurring items, low arrival rate of promotional pages, declining purchase desire. |
| Different point purchase channels and rewards. | Lack of unified brand promotion and marketing power. |
| Monthly massive product updates. | No customized content for target users. |
| Users can't change or mange purchased items themselves. | Need to contact customer service, increasing internal workload. |
| Personal needs require contacting customer service. | Different customer service channels in each country, complex customer service content. |
| No user purchase history. | Can't identify users' personal milestones. |
| Can only buy products for oneself. | Can't boost redemption numbers through gift-giving culture. |
1.4 What Problems Are We Solving for Customers?
1.4.1 Repair the crack in customer’s service
Problem 1: Users are unaware of their current VIP ranking.
VIP user don’t know exact their VIP’s benefits and expired date. It makes hard to encourage them to stay or upgrade their VIP ranking.
Problem 2: Users cannot find loyalty prizes within the app
Massive loyalty prizes are updated monthly, but users have to find this information through a special LINE account maintained by staff. VIPs need to leave the app to view a separate webpage for loyalty prize updates. Even worse, VIPs still need to contact staff manually to redeem their prizes.
Problem 3: Users still need staff assistance to customize their loyalty prizes after purchasing.
Users can accumulate many loyalty prizes through a long purchasing history. However, if they want to change any of their loyalty prizes, they need to contact staff via LINE chat or email. This makes it difficult for users to customize their loyalty prizes whenever they want
Problem 4: Users often lose their VIP ranking and complain
Staff often receive complaints from users who have lost their VIP ranking. This usually occurs when users discover they can't access certain VIP benefits. As a result, staff frequently have to offer significant compensation because we fail to provide the necessary information.
Problem 5: Users do not know the exact amount of their loyalty prizes
Some loyal VIPs have accumulated an impressive collection of loyalty prizes. However, they cannot organize their prizes within the app, so staff must handle their change requests. This is inconvenient for both users and staff.
1.4.2 Increase CRM productivity
Problem 1: Team members spend too much time on routine tasks.
Problem 2: Employees often have only a vague idea of which loyalty prizes users want.
Problem 3: Associates cannot recognize users' profiles to provide customized services.
1.5 Target User
VIPs can easily stay informed about their status.
Potential VIPs can be encouraged to make purchases.
VIP services handled by staff can be automation and scaled up.
1.6 What Metrics and Business Outcomes Are We Aiming to Achieve
Path to profitability: Increase X% VIP Purchase
Arrival rate for VIP promotion: Increase VIP page view
Upscale VIP service: Increase request resolution rate by X% with the new service.
2. Design Approach
2.1 Solution for Problem 1 & 4
Customer’s Problem
Unaware of their current VIP ranking.
Users often lose their VIP ranking and complain.
Hypothesis
Provide a unified page to showcase their VIP status availability.
Honor their VIP membership with distinct visual impacts.
Make it easy to find their purchase history.
Metric
Arrival rate for VIP promotion.
Path to profitability.
2.2 Solution for Problem 2
Customer’s Problem
Cannot find loyalty prizes within the app.
Hypothesis
Categorize loyalty prizes by VIP level and type to make browsing easier for users.
Provide the exact expiration time of each prize to encourage purchases.
Clearly state each prize’s purchase qualifications to motivate users to upgrade.
Metric
Arrival rate for VIP promotion
Path to profitability
2.3 Solution for Problem 3 & 5
Customer’s Problem
Users still need staff assistance to customize their loyalty prizes after purchasing.
Users do not know the exact amount of their loyalty prizes.
Hypothesis
Allow users to easily make style changes.
Inform users of prize availability to encourage them to join as VIP members.
Metric
Path to profitability.
Upscale VIP service.
2.4 Solution for Problem 6
User’s Problem
CRM productivity is low
Hypothesis
Automating redemptions could enhance CRM productivity.
Creating user profiles will simplify customization of loyalty prizes.
Tracking redemption rates will provide data and insights for future marketing efforts.
Metric
Upscale VIP service.
3. Impact
Awareness
Higher page view rate of VIP in JP/HK, while in other regions only around 50%.
The VIP membership has higher awareness in JP and HK, leading to a higher number (52-53%) of users redeeming VIP rewards.
Incentivization
After the launch of the loyalty point store, the number of users redeeming loyalty points increased 10% in JP, 77% in TW, 235% in HK, and 149% in US.
The number of users earning loyalty points has grown by 2.5x in JP and 14x in TW, but did not increase significantly in HK and the US.
Admin Effort
VIP service scaled up significantly, from 180+ to 10K+.
Reduce avg. 80% labor effort for VIP teams; VIP team can focus more on high level users’ personal service.
