Col­lo­quy

Point of Purchase - - CONTENTS -

The world has seen some amaz­ing strate­gies im­ple­mented in the area of shop­per mar­ket­ing based on con­sumer and mar­ket study. Here’s a look at some such find­ings, re­ports and emerg­ing trends.

Ninety per­cent of Chi­nese con­sumers trust for­eign brands over do­mes­tic, and shop­pers in Brazil, In­dia and China say they are sig­nif­i­cantly more likely than Amer­i­cans and Cana­di­ans to use a credit card for some­thing they can’t af­ford. The re­sults of a one-of-a kind global study on shop­ping be­hav­ior and con­sumer loy­alty also found Brazil­ians are far more con­cerned than Amer­i­cans and Cana­di­ans about pro­tect­ing per­sonal in­for­ma­tion, while Chi­nese con­sumers are far less con­cerned than their North Amer­i­can coun­ter­parts.

These in­sights are among many con­tained in the “2011 COL­LO­QUY Cross-Cul­tural Loy­alty Study,” which spans six global economies. Spon­sored by Ep­silon and Loy­al­tyOne, this study pro­vides a timely and com­pre­hen­sive win­dow into cur­rent con­sumer at­ti­tudes to­ward loy­alty amidst con­tin­ued global eco­nomic tur­moil. COL­LO­QUY, a Loy­al­tyOne com­pany, is a lead­ing provider of loy­alty mar­ket­ing pub­lish­ing, re­search and ed­u­ca­tion. Ep­silon is a global mar­ket­ing and an­a­lyt­ics leader fo­cused on help­ing brands deepen their re­la­tion­ships with cus­tomers.

Signs of sig­nif­i­cant growth po­ten­tial for North Amer­i­can busi­nesses aim­ing to en­ter rapidly de­vel­op­ing economies were found along with the crit­i­cal im­por­tance of busi­nesses “lo­cal­iz­ing” their con­sumer mar­ket­ing ap­proaches in these mar­kets. The study re­vealed stark con­trasts in op­ti­mism be­tween three de­vel­oped nations—the U.S., Canada and Aus­tralia—and three emerg­ing mar­kets—In­dia, China and Brazil. These con­trasts un­der­pin fun­da­men­tal dif­fer­ences in sen­ti­ment in de­vel­oped and emerg­ing mar­kets dur­ing a time when cor­po­ra­tions are fo­cused on strate­gies for sta­bil­ity and growth. The mes­sage is clear: even in mar­kets with pent-up de­mand, con­sumers in emerg­ing mar­kets re­spond dif­fer­ently to new brands and prod­uct op­por­tu­ni­ties than do their coun­ter­parts in de­vel­oped nations.

The full re­search find­ings will be re­leased by COL­LO­QUY in a three-part white pa­per se­ries. The first, en­ti­tled. It pro­vides a world­wide over­view, point­ing to lead­ing eco­nomic in­di­ca­tors and im­por­tant be­havioural nu­ances by mar­ket.

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 Mar­ket 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.

In this in­stall­ment, mar­keters in North Amer­ica will dis­cover sev­eral sober­ing chal­lenges:

Only 12% of Amer­i­cans and 10% of Cana­di­ans strongly agree that it pays to be loyal to your fa­vorite brands.

Data com­pared with ear­lier stud­ies will show that en­gage­ment with mar­ket­ing com­mu­ni­ca­tions is trend­ing down in sev­eral chan­nels in­clud­ing so­cial me­dia.

“There are some in­cred­i­bly com­pelling and eye-open­ing find­ings in our re­search in­clud­ing what’s on the hori­zon for cus­tomer loy­alty strate­gies,” adds Hlavinka. “I think chief mar­ket­ing of­fi­cers are go­ing to be sur­prised with the trends and needs that are re­shap­ing cus­tomer ex­pec­ta­tions and loy­alty glob­ally. There is vast loy­alty op­por­tu­nity to evolve how we en­gage cus­tomers in

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.

the de­vel­oped mar­kets. We’ve also un­cov­ered a strong de­sire for spe­cial ser­vices & priv­i­leges in the emerg­ing mar­kets. Mar­keters would be well served to un­der­stand these trends and de­ploy strate­gies to cap­i­tal­ize on them.”

The third white pa­per, slated for re­lease in Fe­bru­ary 2012, will paint some stark on-the-ground dif­fer­ences among the same co­horts across the three emerg­ing mar­kets, un­der­scor­ing dis­par­i­ties in cul­tural and be­hav­ioral char­ac­ter­is­tics, de­spite a shared op­ti­mism.

Ac­cord­ing to Hlavinka, “The find­ings from the emerg­ing mar­kets are telling us that even where there is pentup 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.”

About Loy­alty One

Loy­al­tyOne is a global provider of loy­alty strat­egy and pro­grams, cus­tomer an­a­lyt­ics and re­la­tion­ship mar­ket­ing ser­vices. Its ros­ter of clients in­cludes lead­ing busi­nesses and brands in mul­ti­ple sec­tors such as re­tail, bank­ing, man­u­fac­tur­ing, gov­ern­ment, nat­u­ral re­sources and util­i­ties.

About COL­LO­QUY

COL­LO­QUY com­prises a col­lec­tion of pub­lish­ing, ed­u­ca­tion and re­search re­sources de­voted to the global loy­alty-mar­ket­ing in­dus­try. Owned by Loy­al­tyOne, COL­LO­QUY has served the loy­alty-mar­ket­ing in­dus­try since 1990 with over 40,000 global sub­scribers to its mag­a­zine and www. col­lo­quy.com the most com­pre­hen­sive loy­alty web site in the world. COL­LO­QUY’s re­search division de­vel­ops re­search stud­ies and white pa­pers in­clud­ing in­dus­try-spe­cific re­ports, siz­ing stud­ies and in­sights into the driv­ers of con­sumer be­hav­ior

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.