Redefining Membership: A Fresh Approach to Loyalty Programs

Duration

2023.06-2023.11

My Role

Product Designer

Responsibility

Product designer, focusing on UI/UX and search logic.

Company

FunNow

Overview

Team Goal

Revamp the membership system to address challenges faced by Platinum members, enhancing loyalty and engagement.


By integrating membership benefits across FUNNOW Group's brands and leveraging rewards for consumption, we aim to strengthen the brand ecosystem, reduce churn, and increase switching costs.

My Role

As a Product Designer, I collaborated with the Product Manager (PM) and User Operations (UO) teams to plan and design the new membership system, enhancing user experience.

Challenges

  1. User Engagement: Ensuring active user participation in the new membership system, including accumulating miles and understanding the perks of different membership levels, presented a challenge in increasing user engagement.

  2. Balancing Offerings: Striking a balance between introducing new perks and retaining popular old ones posed a challenge. Some users expressed nostalgia for certain old perks, which added complexity to the project.

Result and Impact

Resulted in a well-received design overhaul. Improved visuals and engaging features have enhanced user experience and loyalty. The feedback reflects the positive impact on users' interactions with the membership system, even though some nostalgic perks were missed.


Overall, the project achieved its goal of enhancing member perks and user satisfaction.

Background

Through user research and data provided by the data team, it was found that the current FunNow membership system is difficult to manage due to the following factors. We hope to improve member loyalty and stickiness, and increase user switching costs through a revision.

Low Awareness of P Points

P points have low recognition among users, who are often unclear about the accumulation rules and their relevance to platinum membership status, thus failing to stimulate consumer behavior.

Short Validity of Platinum Membership

The one-month validity period of platinum membership fails to align with FunNow's longer member consumption cycle, leading to premature expiration of benefits and user frustration.


Additionally, the system updates membership status on the 1st of each month, causing a delay for users who qualify early.

Ineffective Membership Tiering

The current system has only two levels: regular and platinum memberships.


For users who make only one purchase per month, the threshold for platinum membership is difficult to reach, undermining the purpose of the membership mechanism.

User Reasearch

The search functionality can be categorized into Entry, Pre-input, During Input, In Progress, and Search Results phases.

New user segmentation

The data team and user operations team have classified the membership levels into three tiers based on factors such as user spending amount, frequency of consumption, and the company's operating costs, and have established corresponding spending thresholds.

Questionnaire Research

Goal

Based on existing data, we conducted a survey among users in Taiwan who made at least one purchase in the past year, collecting over 2000 valid responses.

Expected Outcome

  1. Understand managing L2, L3 users with surveys for targeted membership perks.

  2. Attract potential L2, L3 users with strategies for the marketing team.

  3. Identify FunNow's value and increase user engagement for experience improvement.

Insight: User Profile

Insight: Current Platinum Member Feedback

  1. Higher tiers, e.g., L3, find the current membership less attractive, failing to meet their needs.

  2. The NPS for L2 dips, suggesting these members don't perceive many benefits.

  3. Although L1-1 has more 10/10 ratings, they promote less than L1-2, indicating they don't feel more honored or treated specially with higher status.


This aligns with the project's background assumptions.

Insight: Future Membership Benefits Plan

Overall, members desire accommodation benefits → weekday discounts → last-minute free cancellations → specific day FunCoin rewards


  1. Weekday Discounts: Higher among lower tiers, suggesting they're more likely to seek leisure on weekdays.

  2. Last-Minute Free Cancellations: More valued by higher tiers, likely due to their higher time costs and need for flexibility.

  3. Specific Day FunCoin Rewards: Increases with tier, indicating FunCoin rewards stimulate loyalty more effectively.

Problem Define

The current FunNow membership system struggles with low member satisfaction and motivation, risking loyalty and increasing switching costs. We must improve the system to boost satisfaction and motivation, aiming to enhance loyalty and lower switching costs.

  1. Low Member Satisfaction: Members are unaware of and unimpressed by the membership system, unclear on points and benefits, and the system fails to meet their needs.

  2. Low Member Motivation: Platinum membership's short validity and the system's limited levels do not match members' spending habits or incentivize infrequent users.

Establish Hypothesis

Hypothesis 1:
Optimize Membership Upgrades

Improve the mechanism and rules to motivate members to upgrade for more perks and rights.

Hypothesis 2:
Enhance Level Alerts

Boost clarity on advancement with better notifications, increasing member engagement.

Hypothesis 3:
Link Levels and Points

Strengthen the association between levels and points with clear guidelines, encouraging next-level achievement.

Hypothesis 4:
Establishing Clear Management and Standards

Allow simple comparison of current and next level benefits to motivate upgrades.

Hypothesis 5:
Enhance Notifications for Exclusive Benefits

Promote exclusive activities with personalized alerts to increase participation.

Deliverables

New Membership Promotion System

We will add search database fields such as "Program Tags," "Regions and Business Districts," and "Common Keywords" to provide users with richer search options.

Convert P points to FunMiles

Transition from the less brand-associated P points to FunMiles, which are linked to urban enjoyment and traveling footsteps with FunNow, thereby strengthening the connection between points and member accumulation.

Membership Tiers

  • L1: SEEKER, equivalent to the original regular member, can join upon registration.

  • L2: PRO, a newly added membership level, upgrade upon spending TWD 3,000, creating an accessible threshold to boost motivation for upgrading.

  • L3: ELITE, equivalent to the original platinum member, upgrade upon spending TWD 7,200.

Enhancing Membership Level Design for User Clarity

To elevate the member experience, we are focused on improving membership level notifications. Through strategic feature arrangement, vivid block colors, and emphasized level indicators, we aim to create a user-friendly membership journey.

Enhancing the Link Between Membership Levels and FunMiles

As part of our commitment to enhancing user experience, we're making design improvements that bridge the gap between membership levels and accumulated FunMiles. These changes aim to simplify and motivate users on their journey to higher membership tiers. Let's explore these enhancements.

Stimulating Upgrades with Quick Benefit Comparison

As we strive to enhance user satisfaction and engagement, our latest design improvements focus on simplifying the journey to higher membership tiers. With the introduction of next-level benefits and a quick comparison table, we aim to motivate more users to upgrade. Let's explore these enhancements for a more rewarding membership experience.

Strengthening Member Exclusive Perks

In the realm of user-centric design, I've spearheaded transformative changes to enhance member benefits. My focus areas: the Member Exclusive Section and Push Notifications.

Outcome

The membership system was revamped in November 2023, and while we are continuously collecting data to assess the effectiveness of the set metrics, we can now share some preliminary insights.

Questionnaire Research

Goal

We conducted a survey among users in Taiwan who made at least one purchase within the past 3 months, resulting in over 650 valid responses. Based on the feedback, our membership base is composed of 17% ELITE, 25% PRO, and 58% SEEKER members.

Expected Outcome

  1. Satisfaction ratings and trends.

  2. Insights into member comprehension.

  3. Actionable feedback for system improvement.

Membership Satisfaction

43% of users expressed high satisfaction with the new membership system (rated 4 or above), 31% considered it average (rated 3), and 26% indicated dissatisfaction (rated 2 or below).

User Feedback

In summary, the design changes have been well-received with users praising the improved visuals and the new membership card design. Upgrade reminders and perk displays have boosted engagement.


However, there are concerns about the removal of the daily login bonus and a desire for more enticing offers. Overall, positive user feedback highlights the effectiveness of these enhancements.

Next Actions

Following the project's launch, we monitored the search feature's data variations for a quarter and obtained the following detailed outcomes:

Cross-Brand Membership Integration

Extending the membership system to sub-brands like Niceday and eatigo to enhance the FUNNOW Group ecosystem, reduce user churn, and maximize membership benefits.

Task Mechanism

We have observed that the previous task mechanism played a crucial role in stabilizing FunNow's revisit rate. To further enhance revisit and purchase rates, we intend to redesign user-conscious task mechanisms with clear objectives, motivating user engagement and loyalty.

Data Tracking and Analysis

After the rollout of the new membership system, we will continue to collaborate closely with the data team to monitor the performance of key metrics. This will help ensure the effective operation of the system and enable continuous improvements and optimizations based on data feedback.

Thanks for watching.

Next On

Crafting Design Excellence: Building a Robust Design System

Revolutionizing Search Experience: Enhancing User Discovery

Next On

Crafting Design Excellence: Building a Robust Design System

Revolutionizing Search Experience: Enhancing User Discovery

Contact

Hello! I'm here to connect and chat. Don't hesitate to reach out!

2024 Anniie Lee, who is swinging between ESFJ and ISFJ 🧋

Contact

Hello! I'm here to connect and chat. Don't hesitate to reach out!

2024 Anniie Lee, who is swinging between ESFJ and ISFJ 🧋

Contact

Hello! I'm here to connect and chat. Don't hesitate to reach out!

2024 Anniie Lee, who is swinging between ESFJ and ISFJ 🧋