Customer Story

Challenges

As the fintech expanded its merchant network across Southeast Asia, it struggled to maintain consistent engagement after onboarding. Many merchants completed the initial setup but showed declining activity within weeks. Disconnected systems, manual rewards, and fragmented data made it hard for teams to sustain momentum or identify early signs of churn.

The company realized it needed an automated, scalable, and multi-market solution that could deliver personalized incentives, reduce manual workload, and build long-term partner advocacy.

Key challenges included:

• Manual onboarding rewards: Merchants were rewarded inconsistently, leading to delays, confusion, and reduced participation.
• Limited engagement: Merchant motivation dropped sharply after onboarding, causing early inactivity.
• Fragmented data: CRM, POS, and rewards information lived in separate systems, making performance tracking difficult.
• Low retention: Nearly 30% of merchants stopped transacting within 90 days of onboarding.
• Lack of advocacy: High-performing merchants were not incentivized for referrals or transaction milestones, resulting in missed growth opportunities.

Personas Involved

• Merchant acquisition teams: Managed onboarding, KYC, and early activation workflows.
• Channel and partner managers: Oversaw merchant engagement, tier upgrades, and incentive performance.
• Product and CRM teams: Maintained integrations, segmentation logic, and campaign triggers.
• Marketing and loyalty teams: Designed campaigns, referral programs, and advocacy initiatives.
• Operations and payout teams: Managed reward issuance, validations, and multi-market compliance.
• Regional leadership: Monitored merchant growth, participation metrics, and program ROI.

Platform Setting and Implementation

The fintech implemented Xoxoday’s merchant engagement platform to automate onboarding rewards, drive ongoing participation, and reduce churn across its diverse merchant ecosystem. The rollout was structured to support localization, multi-language needs, and fast adoption across Southeast Asia.

1. Data integration: Connected CRM, onboarding systems, and payment gateways to enable automated milestone triggers and unified data visibility.
2. Merchant segmentation: Classified merchants by transaction value, tenure, and engagement level to power Silver, Gold, and Platinum-tier campaigns.
3. Campaign configuration: Designed region-specific incentives rewarding first transactions, monthly milestones, and verified referrals.
4. Automated rewards engine: Enabled instant cashback, vouchers, or wallet points upon milestone completion using rule-based triggers.
5. Mobile and web accessibility: Allowed merchants to track performance, rewards, and earnings directly through the app or partner portal.
6. Analytics and reporting: Enabled real-time dashboards to measure participation, redemption behavior, and campaign ROI.
7. Multi-language support: Offered the platform in Bahasa Indonesia, Vietnamese, and English for strong cross-market adoption.
8. Tiered campaigns for top performers: Rolled out “Power Merchant” recognition programs featuring exclusive benefits and premium visibility.

The Solution

With the platform fully integrated, the company shifted from manual onboarding incentives to a continuous, behavior-driven engagement model. Merchants received timely recognition, personalized campaigns, and region-specific opportunities to grow — ultimately transforming them into long-term partners and brand advocates.

The solution was designed not only to activate merchants but also to maintain participation, increase revenue, and cultivate loyalty across all markets.

Key components of the solution included:

1. Onboarding activation rewards: Automated incentives for KYC completion, first QR activation, and first transaction milestones to drive strong early adoption.
2. Transaction-based campaigns: Introduced volume-based rewards for merchants maintaining consistent monthly payment throughput.
3. Tiered loyalty program: Created a Silver–Gold–Platinum structure linked to transaction frequency and value, encouraging merchants to climb tiers.
4. Referral recognition: Rewarded merchants for referring new partners or helping expand the regional merchant network.
5. Advocacy and brand alignment: Recognized top merchants as “Power Partners” with visibility in marketing assets and exclusive event invitations.
6. Instant payouts: Enabled real-time delivery of digital vouchers through WhatsApp and email for instant gratification and stronger engagement.
7. Retention triggers: Used inactivity analytics to identify declining merchants and targeted them with tailored reactivation offers.
8. Regional campaigns: Launched festive and seasonal contests aligned with local events to sustain engagement throughout the year.

Impact / ROI

• Merchant activation: 15,000+ merchants onboarded within 90 days; 85% completed their first transaction.
• Retention rate: Merchant retention improved by 42% through continuous engagement.
• Transaction growth: Monthly transaction volume rose by 33% across active merchants.
• Operational efficiency: Automated onboarding and payouts reduced manual workload by 60%.
• Program adoption: 92% of merchants participated in at least one campaign per quarter.
• Reward accuracy: Achieved 99% payout accuracy with automated validation and instant issuance.

Data Points

• $1.8M+ rewards distributed in vouchers and cashback within six months
• 30% reduction in inactive merchants within two quarters
• 10,000+ merchants upgraded to higher tiers
• 85% first-transaction completion rate
• 95% participation rate in regional promotional campaigns

Why Xoxoday

The fintech selected Xoxoday for its ability to support multi-tier merchant ecosystems with automation, localization, and campaign flexibility. Other platforms lacked regional customization, integrated payouts, and behavioral personalization. Xoxoday’s multilingual capabilities and strong channel loyalty expertise made it the ideal partner for large-scale merchant engagement.

Conclusion

With Xoxoday’s merchant engagement platform, the fintech established a connected and continuously motivating ecosystem for its partners. Automated onboarding rewards, behavioral triggers, and locally relevant campaigns helped reduce churn, accelerate transactions, and transform merchants into loyal brand advocates. Within six months, the company achieved stronger retention, higher transaction volume, and a more energized merchant base across Southeast Asia.

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