ShopBack saw 250% transaction growth in 2018

Singapore startup ShopBack may have little in common with Zappos, a US-based online retailer specializing in shoes. But the leading Asian cashback platform seeks to emulate the shoe retailer’s success in customer service.

“I read a book about Zappos while on a plane that interestingly touched on how they were obsessively focused on customer service to ensure their customers are happy,” recalls Joel Leong, one of the co-founders at ShopBack, who later bought copies of the book Delivering Happiness and gave it to colleagues.

While ShopBack is known for giving good cashback, “we hope to be also known [for] giving good customer service,” continues Leong. “I think very few internet giants in Southeast Asia have captured the space or are known for exceptional customer service.”

The company is placing customer experience as a top priority this year. This comes after ShopBack has extended its foothold at breakneck speed in the past five years, becoming the leading cashback app in the region.

Last year alone, its annualized transaction volume – defined as the sales it brought to partner merchants – reached US$840 million, up 250 percent year-on-year. Number of transactions reached 15 million, up from 6 million in 2017.

However, ShopBack recognizes that it still needs to tackle some of the teething problems customers face before purchasing a product.

It’s rolling out an initiative this year where team members, including the co-founders, would call up customers to understand their pain points.

“It would help us know that our actions have consequences on customer experiences,” Leong points out.

Down under

ShopBack’s growth, though, is a sign that it’s getting many aspects of its customer experience right. The startup has amassed more than 7 million monthly users and 1,500 merchants since its inception in 2014. It currently operates in Singapore, Malaysia, the Philippines, Indonesia, Taiwan, and Thailand, and have recently ventured into Australia in May last year.

To date, Australia has become the firm’s fastest-growing market and holds more opportunities going forward.

“The conditions are favorable for us in Australia,” says Leong. “It’s an exciting market and has exceeded our expectations.”

Australia has one of the highest internet penetration rates of around 84 percent in the region, but trails countries in Southeast Asia like Indonesia and Thailand in terms of app adoption – an area that ShopBack is hoping to capitalize on.

“Merchants there are trying to get into the mobile app space, to drive traffic from online to the app, and that’s where we come in,” Leong explains. ShopBack earns a fee for directing traffic to its partner merchants.

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