Way to Shoppers Mind, Heart & Wallet
This issue we bring to you a study that reveals the mindset of shoppers in emerging markets. Read on to know what how shopper behavior and loyalty are is changing and what are the trends herein. We hope these insights help you pave your way to shoppers mind, heart and wallet.
to new brands and product opportunities than do their counterparts in developed nations. The effectiveness and relevance of brand communications and marketing is analyzed across distinct consumer segments. The U.S., Canada and Australia data spans the general population and includes additional analysis in the affluent, young adult and senior sectors of the United States and in Canada. The emerging market data (India, China and Brazil) includes attitudes and perceptions from consumers across three different socioeconomic classes. Three T’s—Tired, Turned Off, and Tuned Out—are used to characterize consumers in developed markets, where there is strong evidence of a new set of much higher expectations for innovation and reinvention among loyalty programs. Conversely, the emerging market consumer sentiments can be summed up as Three E’s—Energy, Engagement, and Enthusiasm. Yet, despite this prevailing commonality in optimism, marked differences in perceptions around loyalty and shopping-related behaviors were detected. According to LoyaltyOne President Bryan Pearson, whose book, The Loyalty Leap: Turning Customer Information into Customer Intimacy, is due out in May 2012: “Consumer sentiment is incredibly important bellwether. While there are many imminent concerns for business on the horizon, corporations, especially those that are banking on loyalty for growth, would be wise to heed two strong prevailing themes: Success in North America requires a rewrite of the rules of engagement, and emerging markets will not be won with a one-size-fits-all mentality.” Developed and Emerging Comparison Highlights:
Foreign vs. domestic brands: Shoppers in emerging nations are more welcoming of foreign brands and in some cases are more trusting of foreign/global brands. In China, nine out of 10 consumers say that global brands are more trustworthy than domestic brands. Chinese consumers are six times more likely than Americans to agree with the statement that competition from foreign companies is a good thing.
Credit card usage: China, Brazil and India consumers are five times more likely than U.S. and Canadian consumers to say they will use credit cards for “things you can’t afford now.”
Privacy: 68% of Brazilian consumers are concerned about protecting their personal information, compared with 50% of consumers in the United States and Canada. This far outstrips China, where just 33% of respondents said they are concerned.
Brand Loyalty Defined: Consumers almost universally define brand loyalty as telling friends or family to shop at a particular store, except in China, where loyalty is defined as shopping with a specific company for more than three years. “We’ve entered into a period of great change and complexity, which is driving a critical need for clarity and direction. This study is an essential navigational beacon regardless of whether you’re leading the charge for growth on foreign soil or in a market where growth is increasingly hard to mine,” says Kelly Hlavinka, Managing Partner of COLLOQUY. In addition to the macro comparisons between mature and emerging economies, the “2011 COLLOQUY Cross-Cultural Loyalty Study” explores in-depth sentiments of each of the cohorts across the markets studied. A fulsome analysis of the developed markets will be the subject of the second of the three white papers, due out later in November. It will provide a closer look at the effects of the confidence crisis in the mature markets. According to Hlavinka, “The findings from the emerging markets are telling us that even where there is pent-up demand, setting up shop doesn’t guarantee you’ll end up in the winner’s circle. If, on the other hand, you parlay core insights into a long-term engagement strategy from the outset, the potential for ongoing return on investment increases exponentially.”