Header image

How Agile Development Influences Developer And QA Tool Choices

17/11/2022

1.53k

On the surface, it might seem like the Agile methodology is simply about reimagining waterfall development by keeping an open mind. However, this approach has far-reaching implications for people, tools and processes.

That said, let’s dissect the major Agile development characteristics that affect developer and quality assurance (QA) tool choices and talk about some great examples of Agile development tools:

Increased Collaboration

Agile development pushes for greater synergy amongst teams. It’s hard to release higher-quality products faster if many of the people involved aren’t openly communicating with each other about challenges. For example, a developer working alone can easily store, manage and reuse code using one machine.

However, things get trickier once a project needs more hands and numerous software units are being created. You’ll need a space where everyone’s work can be converged, with changes indicated coherently.

Increased Collaboration

Photo by Tim van der Kuip on Unsplash 

This is where tools like GitHub come in. GitHub will enable developers to combine their code into modules and easily perform version control. More importantly, developers can do all this remotely since it’s cloud-based. It’s also worth noting that GitHub isn’t the only code hosting/management solution out there.

You can always try others like TaraVault, AWS CodeCommit, Bitbucket, SourceForge, and many more.

By the way, collaboration doesn’t begin only when the team has been formed. It’s an ethos that can be applied even when building the team and responding to talent departure or unavailability. With tools like Crowdsource.io, you can set up a project folder, post your needs and respond to interested developers. This social approach simplifies recruitment, especially during emergencies.

Continuous Testing

In continuous testing, teams don’t have to wait for all units to be ready before they start. Instead, they endeavor to test whatever small piece is ready as others are prepared. By doing so, they are less likely to be blindsided by complex problems in the software that delay a release as the team tries to fix them.

This approach often means the testing workload will fluctuate as the project progresses, so quality assurance teams will have to be swifter at scaling testing capacity accordingly. One of the best ways to achieve this is by using test automation tools.

Continuous Testing

Photo by freestocks on Unsplash

More specifically, you’ll need user-friendly test automation tools if teams are to quickly add new automations in response to changes in the testing workload. They should also facilitate reusability and easily plug into your CI/CD pipelines, which is what tools like Leapwork are good at.

Additionally, an Agile testing team needs robust tracking and reporting capabilities to excel at continuous testing. This is where tools like JIRA and nTask Issue Tracker shine. They’ll offer features tailored to defect tracking while also helping you analyze QA team performance in real time so you can know how to increase efficiency and remain on schedule.

Value-Driven Development

You can only offer so much value if you aren’t listening and responding to users. So to get better at value-driven development, you must create a smoother path for user feedback to be absorbed into the development lifecycle promptly.

Value-Driven Development

Photo by krakenimages on Unsplash

One critical piece in this area is the usability testing tools you rely on. They should have functionality that speaks to agility, such as;

  • Recruiting participants remotely
  • A/B testing
  • Integration with various tools like prototyping solutions, design tools, productivity tools and more.

These are some of the crucial functions needed because:

  • You want to be able to start user feedback collection from anywhere as soon as you get the green light. In that sense, participant recruitment should involve as little bureaucracy as possible and be easier to manage as you conduct more tests down the road.
  • Testers should be able to compare feature variations side-by-side instead of testing one, then trying another later. So through A/B testing, you shorten the time it takes to discover whether a slight tweak in a feature caused a significant improvement in usability.
  • Once you have user opinions and usability metrics, there shouldn’t be that many error-prone processes to link the data to the concerned parties and the different tools they use to respond to the feedback. Whoever is going to modify a product should be able to quickly see how their previous contribution fared.

The other leaders who have to sign off on additional changes should also be able to view this information simultaneously, so there isn’t much sitting and waiting.

Tools like UserZoom, Loop11, UsabilityHub, Userlytics and Maze will go a long way in helping you increase the customer value realized with each iteration.

The glue that holds everything together

While we’ve talked about the Agile QA process and Agile development software, another key aspect is more about the administrative side of an Agile project. When it comes to this area, you’ll hear a lot of buzzwords and office terminology thrown around, like modularity, effective communication and visibility.

But to be clearer about the tenets of organizational agility, here’s what Agile teams should emphasize during the development life cycle:

  • Teams should be able to zoom in on the smallest of processes as this is how they’ll know what’s essential and what isn’t and also what could be improved.
  • Organizations should give more autonomy to the lower ranks so they can do some things at their discretion. If every small move has to first be run up a long chain of command, all in the name of maintaining control and minimizing risk, you can forget about faster releases.
  • Whatever you practice should be incremental. For example, when figuring out how to communicate better, you don’t just set benchmarks and lean back. Instead, you should revisit them to see if they are working and decide whether to maintain, increase, decrease or move sideways.

So how exactly do these principles shape tool choices? Well, you’ll need Agile project management tools that offer features like automated notifications, workflow customization, analytics and recommendations. There are plenty of options to try; Agilean, ProofHub, ActiveCollab, MeisterTask, Axosoft, JIRA and DailyScrum.

Wrapping Up

Ultimately, tools that work for some may not work for you, so it starts with understanding your existing organizational culture and how much you’re willing to alter it in pursuit of agility. That’s when you’ll know where tools are applicable and which functionality they must have. To learn more about how to pick the right developer and QA tools for Agile development, contact us for a free consultation.

Related Blog

nguoi lao wins third place AI hackathon ecommerce AI

AI

AI-assisted development

+0

    AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025

    SupremeTech’s first-ever AI Hackathon was more than just a competition. It was a thrilling test of creativity, focus, and endurance. For 22 hours, teams of passionate innovators raced against time to turn bold ideas into working prototypes that could bring real business value through AI. Among them was team Người Lào, whose project tackled one of the most relevant challenges in modern retail: building an omnichannel e-commerce and loyalty platform supported by AI. The goal was to create a system that connects online shopping, personalized loyalty programs, and in-store interactions into one seamless customer journey.What made Người Lào stand out was their business-driven mindset. Instead of treating the task as a purely technical challenge, they saw it as an opportunity to transform how Vietnamese cosmetic retailers connect with their customers. Their answer was ViEC Beauty, an innovative AI-powered e-commerce solution built on Zalo Mini App, turning a familiar local platform into a powerful tool for digital commerce. Meet The Team Team Người Lào was formed with the simple spirit of having fun, staying friendly, and learning together. Everyone joined with an open mind, ready to give their best once the challenge began. The team brought together members from different backgrounds, covering all key roles in a real project from infrastructure and front-end to back-end, business analysis, and quality control.Phuoc Pham, the team leader, believed great teamwork mattered more than perfect technical skills. What he looked for were people who knew their strengths and were willing to give their all. With that mindset, Người Lào grew into a team built on trust, respect, and laughter, values that ultimately became their greatest strength. When a Familiar Task Became the Toughest Challenge At first, the assignment sounded simple: create a multi-channel e-commerce and loyalty platform for retail stores. Building e-commerce systems was something most members already did in their daily work. But soon they realized that creating a typical shopping app would not stand out. To impress the judges, they needed something fresh, a solution with clear business impact and technical creativity. In just 22 hours, with five members and the support of AI tools, Người Lào had to deliver a product that was practical, scalable, and market-ready. Finding a Small Idea with Big Impact After a few brainstorming sessions, they decided to focus on a small but meaningful niche: the Vietnamese cosmetic retail market. This idea came from observing how many small cosmetic shops in Vietnam were struggling to keep up with the digital shift. While big players like Shopee and TikTok Shop dominate online sales, a large number of small cosmetic stores still lack proper digital tools to compete. These stores serve a loyal base of middle-aged customers who have strong purchasing power but are often left behind in the rush of digital transformation. They do not need complex apps or flashy platforms. What they need is something simple, familiar, and trustworthy. Người Lào identified three major problems these small retailers face: Losing connection with middle-aged customers who prefer personal interaction but no longer visit the store as often.Lack of customer insights makes it hard for shop owners to understand shopping habits or preferences.Being overshadowed by large e-commerce platforms, which are slowly taking over their loyal customer base. With those challenges in mind, Người Lào saw an opportunity to make a real difference. Instead of competing with big platforms, they wanted to empower small retailers with a digital tool that feels local, personal, and easy to use.That was when the idea of building an AI-powered e-commerce solution on Zalo Mini App, namely ViEC Beauty, was born. ViEC Beauty is a platform that could bring e-commerce and loyalty features right into the ecosystem that Vietnamese users already trust and use every day. It was a smart move that combined business empathy, technical creativity, and a clear understanding of the local market. From Idea to Prototype in 24 Hours Once the idea was clear, the real race began. With only 24 hours to bring ViEC Beauty to life, Người Lào jumped straight into action. The plan was simple: divide roles clearly, trust each other’s strengths, and move fast. Hieu Vo, the dev lead, took charge of integrations and overall coordination. Anh Duong focused on building the back end with Laravel and setting up the admin site. Hieu Cao worked on the front end of the Zalo Mini App. At the same time, Huong Nguyen took on both the Business Analyst and Quality Control roles to ensure everything aligned with the initial vision. Meanwhile, Phuoc Pham, the team leader, acted as the bridge connecting everyone - reviewing ideas, making key decisions, and preparing the final presentation slides. With all the key roles covered, the team had a 360-degree view of the project, from technical implementation to business logic and user experience. They spent the first ten hours coding with AI Copilot and documenting the workflow. It was intense but exciting until the team hit a wall. The AI started producing conflicting UI components due to unclear process design in the initial prompts. What was supposed to save time ended up creating bugs that needed hours to fix. But instead of getting frustrated, the team stayed calm, laughed it off, and worked together to debug and refine the product until everything clicked into place. When the final hour arrived, they had a fully working Zalo Mini App—not perfect, but functional, meaningful, and proudly built within a single sleepless day. The Product: Core Features That Matter ViEC Beauty, an AI-powered e-commerce solution built within the Zalo ecosystem, offered small beauty retailers an accessible and familiar way to sell online and engage customers. Core App Features Product Catalog: An easy-to-browse collection of beauty products directly inside Zalo.Basic Loyalty Point System: Customers earn and redeem points to encourage repeat purchases.Admin Dashboard Prototype: A simple dashboard for store owners to manage products, orders, and sales.Zalo Integration Setup: Allows stores to send personalized notifications, skincare reminders, and promotions through the Zalo Official Account. Super Admin System A more advanced panel included: Real-time data analytics for instant business insightsInventory management to track stock levelsCRM tools to maintain relationships and engagementCampaign and promotion management to run and measure marketing activities Even though some features like Group Orders and AI Skin Analysis were still in ideation, ViEC Beauty already demonstrated how a simple, focused solution could bring AI-powered value to small businesses. Tech Stack The team built ViEC Beauty with React and Zalo SDK for the front end, Laravel for the back end, MySQL for the database, and EC2 cloud infrastructure for hosting. They chose familiar and reliable technologies to move fast and deliver results within 24 hours, prioritizing execution over complexity. >>> Read more related articles: SupremeTech’s AI Hackathon 2025: A blend of Product-Focused Spirit and AI-assisted DevelopmentHow Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025 Judges’ Feedback The judges praised Người Lào’s strategic focus on a niche market and their decision to build on the Zalo Mini App, calling it a practical and high-potential approach. They noted that while the product targeted small beauty retailers, a limited market segment, it had strong potential for real-world implementation. They recommended expanding ViEC Beauty into a multi-store SaaS platform, adding community-driven features, and integrating AI more deeply for personalization and competitiveness. On the technical side, the judges commended the team’s clear planning, fast execution, and AI integration. They encouraged the team to make AI applications more visible and explore scalability for larger projects. Overall, Người Lào left a strong impression with a well-executed prototype and a clear vision for future growth. Teamwork Memorable Moments For Phuoc Pham, the leader, the biggest lesson was simple: strong determination makes anything possible. He learned to stay focused, manage effort wisely, and balance ambition with practicality so the team could deliver on time. To him, the real strength of Người Lào came from teamwork, from every member understanding their own strengths and supporting one another toward a shared goal. Huong Nguyen shared that the hackathon was an unforgettable experience, a test of creativity, patience, and collaboration. From ideation to final delivery, every member gave their best and learned how to manage time, communicate, and step outside their comfort zones. Winning third place was a proud moment, but for the team, the valid reward was the experience itself, learning, laughing, and building something meaningful together. Conclusion For Người Lào, the SupremeTech AI Hackathon 2025 was more than a contest. It was a journey of teamwork, creativity, and discovery. In just 24 hours, they turned an idea into a working Zalo Mini App that blended business insight, AI innovation, and human collaboration. Their story proved that success is not just about winning but about learning how to move fast, stay focused, and create with purpose. ViEC Beauty started as a hackathon project, but it carries the potential to grow into something much bigger for Vietnam’s beauty retail industry. Team Phuoc Pham T. - Senior Infra EngineerHieu Vo H. - Senior BE EngineerDuong Nguyen V. A. - BE EngineerHieu Cao K. - FE EngineerHuong Nguyen T.T. - Quality Control Engineer  Tech Stack Frontend: React, Zalo SDKBackend: LaravelDatabase: MySQLInfrastructure: EC2, Cloud 📩 Read more articles about us here: SupremeTech’s Blog

    21/10/2025

    3

    AI

    +1

    • AI-assisted development

    AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025

    21/10/2025

    3

    Gensync top 2 Hackathon AI SupremeTech 2025

    AI

    AI-assisted development

    +0

      How Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025

      After 2 weeks of thorough assessment, our judges have officially announced the top threes of SupremeTech AI Hackathon 2025. In a final scoreboard where the results were incredibly close, GenSync impressively secured the first runner-up position, missing the crown by just half a point. Their success didn’t come by chance. It was the product of sharp preparation, savvy use of AI, and teamwork that ran like clockwork. GenSync perfectly embodies how human intelligence and strategic thinking, when combined with effective AI application, can create exceptional outcomes.  That’s the same winning formula SupremeTech is bringing to life: Building AI-assisted solutions that elevate performance and cut costs without cutting corners. Let’s take a look back at what made GenSync stand out, and how about trying to apply AI the way they did to build a truly working MVP in just 22 hours. For details about the solutions, tech stack and highlighted prompts, scroll down to the Appendix section. Prepare a Strong Foundation Before the Starting Line  Right after registering for the Hackathon, this crew was already architecting the workflow and put into practice the whole process. GenSyncs is no doubt the most well-prepared team in this hackathon.  They treated preparation like a mini hackathon of its own, consolidating in just two intensive planning sessions: Session one: Roles were assigned to make sure that each member knew exactly which hat to wear: Backend, Frontend, Mobile, BA, QC, Scrum Master. The smart move was to utilize the Agile Development Project Life Cycle and craft it into a mini version that runs smoothly in 22 hours. We will dive deeper into this point in the next section. Session two: The team dove into the fun part: prompt experimentation. They exchanged prompt-crafting know-how like secret recipes and tested which AI models played best with their ideas. Trial runs with mock challenges helped them fine-tune the prompts to generate the satisfied output. By the end, they’d not only aligned as a team but had built what can be called “a structured prompt playbook”. “We treated AI as part of the team, not just a tool. For the “master” prompt that generates system design, I tested the prompt myself based on past experiences to come up with the most efficient prompt. If you took the prompt from somewhere on the Internet without curating it, it may never work the way you want”Tuan Mai - Technical Leader of the team AI-Assisted, 22-hour Mini Version of the Agile Development Project Life Cycle As said, one of the smart moves of GenSync is to utilize Agile Development Project Life Cycle as a skeleton of their hackathon strategy. By applying selectively the framework, GenSync achieved harmonized, well-managed project management. Members collaborated smoothly with each other like a rhythm because everyone is already familiar with Agile in their daily work.  They simply empower Agile with several AI co-pilots, namely GPT-5, Claude 4.0 and Github Copilot.   The team broke the challenge into sprints just like any other project. But instead of endless spreadsheets, they let prompts do the heavy lifting: Sprint 1: Ideation. GPT-5 and Deep Search acted as their research department, scanning the latest tourism tech trends and helping the team shape their concept in record time. Then came the human touch: the team weighed every AI suggestion against their own experience across backend, frontend, and mobile development to come up with the final concept file. It acts as the North Star of their project.Sprint 2: Design. Claude 4.0 turned those ideas into tangible structures. From architecture diagrams to data flow logic, every detail was auto-documented and formatted with machine precision. The team even used prompts to list and prioritize screens according to business objectives.  Sprint 3: Implementation. Using GPT-5, Copilot, and Claude Sonnet, they created a complete work lifecycle. GPT-5 helped write guidance files for Copilot, defining logic structures, and coding styles.Copilot followed screen flows in the master design to code while developers focused on creative logic.Claude Sonnet handled documentation and integration.Sprint 4: Review & Testing. Code was co-reviewed by robots and humans. Copilot and GPT-4 took the first pass, while Claude Sonnet and the QC member ran automated API testing, BA handled UI tests to ensure the demo ran beautifully.  In short, they built a collaboration model with AI. Humans provided direction, AI delivered results, then humans curated the results and instructed AI to improve. Most importantly, the system design and master concept serve as the guiding compass for aligning every feature’s design, ensuring that all functionalities stay true to the product’s overall goal. A Hackathon Experience that Changes the Perspectives of Development Team For Good When asked about what they bring home after the hackathon, Quỳnh Anh, the Business Analyst, shared: “We aim for the trophy, but 1st runner-up place is not bad (haha). Most importantly, this Hackathon completely altered my perspectives towards using AI at work. Now I can use AI as an agent to help analyze and process business requirements”. Quỳnh Anh - Business Analyst Vũ Nguyễn looked back at the journey from a different angle: “Joining the hackathon helped me gain a deeper understanding of the roles of other specialized teams in a project and how to leverage AI to build a product from scratch. After the competition, I even built my own website to support QC certification exams with AI. I used the very same prompts our team created during the hackathon. The journey was truly a blast. The leftovers are memories and invaluable experiences.”Vũ Nguyễn - Scrum Master, QC and Team Leader GenSync currently holds the record as the team with the most code written in the hackathon, boasting over 100,000 lines of code. Final Words We are glad that our first AI hackathon turns out to be exactly what it’s designed to be, a laboratory for the future of teamwork, creativity, and intelligent development.  At the end of the day, is AI stealing jobs from software developers? After hosting an internal AI hackathon and witnessing the performance of our engineers, we SupremeTech seem to have an answer for ourselves. Artificial intelligence definitely cannot replace the creativity and sophistication in human minds. And those are among the driving forces of a product’s success. If well managed, however, AI will create an unprecedented advantage in terms of speed and implementation capabilities for those who act first. Follow us to get more insights about how to utilize AI-assisted development to build products faster and more cost-efficiently. Or simply book a free consultation if you have an idea that you want to make it happen fast.  >>> Read more related articles: SupremeTech’s AI Hackathon 2025: A blend of Product-Focused Spirit and AI-assisted DevelopmentA to Z about SupremeTech’s AI Hackathon 2025: Why We Do It and What to Expect Appendix: Overview of the Product The challenge: Destination and Experience Management System for Tourism In this statement, teams are required to develop a platform that streamlines group trip management. The solution should enable organizers to coordinate transportation, schedules, and interactions in one place, instead of relying on scattered tools like messenger apps.  The solution: MVP mobile apps that allow users to view tour details and interact with other tour members. Admin apps that allow companies in the tourism industry to manage destination and customer experience.  The apps is optimized for group tour management with 6 main features: Tour creation Scan QR code to view tour schedules holistically Realtime chatbot to stay connected with other members in the tourAI chatbot to support search and customer servicePush notifications to keep users updated with new changes in tour scheduleRecommendation engine for tourist attraction suggestions Highlighted Prompts Sprint 1: Ideation: Sprint 2: Design Sprint 4: Review & Testing Team Vu Nguyen Q - Scrum Master, QC and Team LeaderTuan Mai A - Technical LeaderHan Le T S - AI EngineerLong Ngo D Q - FE EngineerAnh Nguyen T Q - Business Analyst Tech Stack Frontend: Next JSBackend: Nest.JS, Open AIMobile: Flutter Infrastructure: AWS, Render Recommendation engine: GorseChatbot & Memorizer: RAG 📩 Read more articles about us here: SupremeTech's Blog

      17/10/2025

      59

      AI

      +1

      • AI-assisted development

      How Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025

      17/10/2025

      59

      1 [BA Series] The story of a BA – My journey into the field

      Our culture

      +0

        The Story of a Business Analyst – My Journey into The Field

         "You don’t need an IT background to become a Business Analyst — as long as you have passion, perseverance, and a willingness to learn." Hi, I’m Quỳnh Anh, currently working as a Business Analyst (BA) at SupremeTech. If someone had told me a few years ago that “you might end up working in the tech industry,” I probably would’ve laughed and shaken my head — because I studied at the University of Foreign Language Studies – University of Danang, which has nothing to do with IT. And yet, somehow, fate led me to the BA role — something I had never even heard of before, but have now come to truly enjoy and feel connected to every single day. Here’s my “beginner’s journey” — from having zero knowledge to finding my path in the fascinating world of technology. First steps into the IT world Back then, I had no idea what a BA was. I only vaguely knew it was something “related to IT.” Through a friend’s recommendation, I joined a basic training course at a software company to explore the field. That course introduced me to my very first concepts of business processes, programming, databases, and MySQL. Everything felt new — sometimes even overwhelming — but incredibly exciting. Still, when the course ended, one question lingered in my mind: “What does a BA actually do every day? And how are these lessons applied in real projects?” That question stayed with me — until I got the chance to intern at SupremeTech. Internship – Where my Business Analyst journey became clearer Thanks to a collaboration program between SupremeTech and my university, I was accepted as a BA Intern. That became the first turning point that allowed me to truly “touch” the profession. Although I wasn’t directly involved in client projects, every day during my internship opened new doors for me: Learning how to listen and communicate with clients to truly understand their needs.Getting familiar with common Japanese IT terms used in the workplace.Writing clear and concise business documents.And most importantly, understanding how a non-IT person can effectively communicate and collaborate with technical teams. The seniors in my team were always patient, sharing not just knowledge but real project experiences. Thanks to their support, I no longer felt intimidated — instead, I grew more curious and passionate about becoming a BA. Read more articles: When Technology Meets a Pioneering SpiritSparking the Fire, Spreading the Passion From intern to Full-time Business Analyst My internship eventually ended, but my journey with SupremeTech didn’t stop there. With a proactive mindset and eagerness to learn, I was offered a full-time position — and that’s when my real BA journey began. This time, it wasn’t about lessons or training sessions anymore, but about real work: Analyzing business requirements with clients.Writing detailed documentation for developers.Reviewing and validating requirements to ensure the product meets business goals.Communicating constantly in an Agile environment — where things move faster than you expect. Of course, it wasn’t always smooth. There were days I felt overwhelmed, confused by technical discussions, or unsure how to convey ideas clearly to the dev team. But thanks to the solid foundation from my internship and the support of my teammates, I learned to stand firm and keep moving forward. What being a Business Analyst means to me For me, being a Business Analyst is a journey without a finish line — there’s always something new to learn, new people to connect with, and new problems to solve. If you’re curious about this career, my advice is: “Don’t be afraid to start, no matter what background you come from. Keep your curiosity alive and never stop learning — you’ll eventually find your own path.” I’m deeply grateful to SupremeTech for giving me the chance to begin, to make mistakes, to grow, and to become who I am today. And if you’re curious about the BA world, stay tuned for our ‘The Story of a BA’ series — because who knows, you might just see a bit of yourself in the stories to come.

        10/10/2025

        132

        Our culture

        +0

          The Story of a Business Analyst – My Journey into The Field

          10/10/2025

          132

          point-based loyalty program in Japan

          Retail

          +0

            Inside Japan’s Point-Based Loyalty Culture: The Power of Point Networks and the Rise of Custom Programs

            In our article The History of Point Culture in Japan and What Businesses Can Learn From It, we got a chance to explore how loyalty programs in Japan evolved from humble stamp cards to mobile-first systems, and how the habit of collecting points became a part of everyday life. This follow-up takes the story further. Today, Japan’s loyalty economy is powered by two major forces. On one side, nationwide networks such as Rakuten, d POINT, and the newly merged T-Point/V-Point dominate at massive scale, influencing where people shop, how they pay, and even how they invest.  On the other, retail giants and luxury brands are increasingly building their own custom loyalty programs to secure financial control, protect their brand identity, and design experiences tailored to their customers. Together, these trends reveal why loyalty in Japan is not just a marketing tactic, but a strategy to shape the future of retail. The Dominance of Major Point Networks When it comes to loyalty points in Japan, the scale is impressive. Some programs have grown so large that they function almost like economies of their own, shaping where people shop, how they pay, and even how they invest. This success is deeply tied to Japanese consumer culture. According to the World Bank, households in Japan collectively hold savings worth more than USD 1.3 trillion. With this cautious mindset, loyalty programs resonate strongly because they speak to the instinct to save, while still delivering the little thrill of getting something “extra” from everyday spending. The numbers highlight just how powerful this model has become. In 2023 alone, Japanese companies issued more than ¥2.65 trillion worth of reward points, a figure that continues to rise. For payment providers and retailers, these points are far more than giveaways. They are strategic tools to lock customers into ecosystems: once you start collecting Rakuten Points or d POINTs, you are more likely to keep shopping, paying, and even investing within that network. In fact, points are even crossing into finance. Rakuten Securities now allows members to use Super Points to buy stocks. For many younger consumers, this lowers the barrier to investing turning spare points from online shopping into their very first financial assets. It’s a clever way to both reward loyalty and build new habits for the future. By 2024, a handful of nationwide programs dominate the loyalty landscape: Rakuten Points (59.3% of consumers), T-Point (48.3%), Ponta (40.5%), d POINT (38.9%), and PayPay Points (38.1%).  One of the most significant shifts came in 2022, when T-Point and V-Point announced a merger, creating one of the largest loyalty networks in Japan. This consolidation was more than just two brands joining forces, it was a sign of how competitive the loyalty market has become. By combining their strengths, the new program ranked among the country’s top five ecosystems, with the scale to challenge even Rakuten and d POINT. For consumers, it meant broader usability of points across more merchants; for businesses, it highlighted the reality that loyalty is no longer optional, but a key battleground for customer engagement. For consumers, this makes everyday life easier. For businesses, it creates pressure: join one of the big networks or risk being left out. Together, these point economies demonstrate how loyalty has evolved from a simple perk into one of the most powerful forces in Japanese retail. Custom Point-Based Loyalty Programs Trend Led by Japan’s Giant Retailers and Luxury Brands Alongside these giant loyalty networks, another trend is emerging: the rise of custom loyalty programs. Retail groups, department stores, and lifestyle brands are increasingly building their own systems instead of joining national coalitions. AEON has expanded WAON Points across its malls and supermarkets, Don Quijote uses its own Majica card, and FamilyMart now pushes FamiPay rather than relying on T-Point. In the department store sector, Isetan Mitsukoshi runs MI Points with VIP tiers, while Daimaru Matsuzakaya offers an app-based membership program that doubles customer spending compared to non-members. Even lifestyle brands are using loyalty to reinforce their identity. MUJI, for example, runs its MUJI Passport app, which rewards shoppers with points for purchases, grants birthday perks, and offers early access to events or new collections. The app integrates seamlessly across MUJI’s online and physical stores, while its clean design reflects MUJI’s minimalist brand philosophy. It shows how custom programs can be more than just a tool for discounts, they can strengthen the relationship between brand and customer by staying true to the company’s values. >>> Read more related articles:  Restaurant Mobile Ordering App: Transform or Lag behind the CompetitionHow Loyalty Apps Can Improve Customer Lifetime Value (CLV) Why Luxury Brands Are Creating Their Own Loyalty Financial Control & Profitability One of the biggest reasons luxury brands and retailers choose to run their own point systems is financial. Large national networks charge brands based on user activity, meaning the more customers use points, the more the brand pays out in fees. On top of that, when points issued by third-party systems expire, the unclaimed value is recognized as profit for the operator of that network, not for the brand. By creating their own loyalty system, brands can keep this financial upside in-house, turning expired points into pure profit and avoiding ongoing external charges. Ownership of Customer Data & Identity When a retailer runs its own loyalty program, it gets direct access to data: what customers buy, when, where, how often. More than that, it can design the “feel” of the loyalty experience, how it looks in the app, what kinds of rewards are offered, and how membership levels are structured. For many brands, preserving this identity is crucial. Customers don’t just want generic points; they want rewards and interactions that feel part of that specific brand’s atmosphere. Customizable Rewards & Campaign Flexibility This is perhaps the most important reason why brands want to have a private system. This gives brands the ability to customize how points are earned and redeemed in line with their marketing strategy. They can run x2 or x3 point multipliers during exclusive campaigns, convert points into vouchers for specific products, or target promotions to selected customer segments. This kind of precision is nearly impossible with third-party networks, where point accrual and redemption rules are standardized. For luxury brands, that flexibility is key, which allows them to design campaigns that not only drive sales but also strengthen their brand story and exclusivity. Financial Comparison: Networks (Coalition) vs. Custom (Own) Loyalty Programs TopicGiant Loyalty NetworksCustom Loyalty AppExpired PointsWhen points expire, the value usually stays with the coalition operator, not the brand.The brand keeps all the value from expired points as pure profit.Market ScaleCoalitions dominate because of large networks (e.g. T-Point, Rakuten). Brands may feel forced to join for reach.Own programs are smaller but allow full value capture and closer customer ties.Customer Data OwnershipLimited: coalition networks keep most customer data, and brands only see summary reports.Full: brand knows exactly who buys, what, when, and where, enabling stronger personalization.Profit ImpactSome profits are lost to fees and expired points that go to the coalition.All upside stays with the brand, improving long-term profit. Challenges of Building Custom Loyalty App Of course, building a custom loyalty program is not without trade-offs. Unlike joining a nationwide network, brands must shoulder the responsibility themselves. That means investing in the right technology, maintaining a seamless user experience across online and offline channels, ensuring data security, managing the costs of rewards, and keeping members engaged through ongoing campaigns. This is where the right technology partner makes all the difference. At SupremeTech, we’ve worked with Japanese retailers and service providers to design loyalty ecosystems that are both scalable and brand-authentic. From integrating mobile wallets and e-commerce platforms to building real-time data pipelines that unify customer behavior, our teams help brands modernize without losing their unique identity. A good example is where we developed a custom Shopify app to streamline our client loyalty data pipeline across offline POS, e-commerce, and mobile. By connecting these touchpoints, the client could finally unlock a “single source of truth” about customer engagement enabling smarter campaigns, cleaner data, and ultimately stronger loyalty outcomes. (You can read the full case study here: Shopify Custom App to Streamline Loyalty Data Pipeline) The lesson is clear: technology should amplify tradition, not replace it. With the right architecture and an experienced partner, brands can turn the century-old Japanese habit of point collecting into a modern, data-driven loyalty engine that is ready for the future. What Businesses Can Learn from Japan’s Loyalty Culture The first lesson is to make the process effortless. In surveys, over 87% of Japanese point collectors said their ideal is to earn loyalty points rewards without realizing it. The best programs don’t force customers to jump through hoops. Instead, they tie points automatically to common actions like mobile payments, train rides, or even buying lunch at a convenience store. The second lesson is to build ecosystems, not stand-alone programs. Rakuten, Docomo, and PayPay succeed because they integrate points across multiple industries shopping, banking, telecom, travel. Each service feeds into the same pool of rewards, creating a closed loop where leaving the ecosystem means losing value. This is what keeps customers engaged long-term. For businesses abroad, the takeaway is clear: don’t treat loyalty points as just another promotion. Treat them as part of your customer’s lifestyle. When loyalty points rewards are seamless, practical, and connected, they stop being an incentive and start becoming a habit. Conclusion: More than Just Points The story of Japan’s point based loyalty programs shows that loyalty is built transaction by transaction, habit by habit, until it becomes part of daily life. For businesses, it’s a reminder that the strongest rewards programs are not those that simply give discounts, but those that create ecosystems, engage emotions, and embed themselves into routines. At SupremeTech, we help businesses take on that challenge building custom apps, integrating e-commerce and designing real-time data pipelines that make loyalty seamless and scalable. Just as Japan has shown, loyalty done right is more than just a promotion. It’s a tradition transformed into a digital advantage. 📩 Read more articles about us here: https://www.supremetech.vn/blog/  ☎️Contact us to see how we can support your loyalty app strategy.

            03/10/2025

            261

            Retail

            +0

              Inside Japan’s Point-Based Loyalty Culture: The Power of Point Networks and the Rise of Custom Programs

              03/10/2025

              261

              Customize software background

              Want to customize a software for your business?

              Meet with us! Schedule a meeting with us!