Loyalty: Likely Whys & Lows
Consumers more likely to visit retailers that offer loyalty program: Nielsen
NEW YORK -- Nearly 60% of global respondents said that loyalty programs (marketing programs that reward members with purchase incentives) were available where they shopped, and of those, 84% said they were more likely to visit those retailers, according to a recently released Nielsen study.
"While the concept of loyalty is nothing new, we are seeing a significant surge in retailers--and particularly those in developing economies--investing in loyalty programs that give them valuable insight into how to better meet customer needs," said Julie Currie, senior vice president for global loyalty at Nielsen. "Savvy retailers are mining the data and looking for new and innovative ways to achieve the benefits most important to their customers."
The Nielsen Global Survey of Loyalty Sentiment polled more than 29,000 Internet respondents in 58 countries to evaluate consumer views on loyalty levels across 16 categories including fast-moving consumer goods, technology products and retail establishments. Nielsen found that, on average, more respondents claimed to be not loyal than completely loyal to brands, service providers and retailers. Most respondents said they were mostly loyal, or unlikely to switch brands or providers without significant incentives.
According to Nielsen's survey, three-quarters (75%) of global respondents said that discounted or free products was the most valuable loyalty program benefit. Enhanced customer service and free shipping incentives were important to 44% and 42% of global respondents, respectively.
Good customer service was important to more than half of respondents in Latin America (59%) and Asia-Pacific (53%). Exclusive deals (41%) and special shopping hours (36%) mattered most among loyalty program participants in Asia-Pacific. Free shipping incentives were important for 46% of North Americans.