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G E T W I T H T H E P R O G R A MCARD-CARRYING CONSUMER PERSPECTIVES ON RETAIL LOYALTY-PROGRAM PARTICIPATION AND PERKS
NOVEMBER 2016
2 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
FAITHFUL FOLLOWERS OR FAIR-WEATHER FANS?
AROUND THE WORLD• Donewell,loyaltyprogramscanhelpdrivemorefrequentvisitsandheavierpurchasing.More
thansevenin10globalrespondents(72%)agreethat,allotherfactorsequal,they’llbuyfroma
retailerwithaloyaltyprogramoveronewithout.
• Morethanhalfofgloballoyalty-programparticipants(51%)sayproductdiscountsareamong
theirthreemost-valuedloyalty-programbenefits,followedbymonetaryrewardsintheformof
rebatesorcashback(45%).Genericdeals,however,createlittledifferentiation;retailersmust
focusonconnectingwithconsumerneedsanddeliveringgreatervalue.
• Monetaryrewardsareimportanteverywhere,butnon-monetaryrewardsresonatemorestrongly
insomeAfrican/MiddleEasterncountriesthanglobally.Examplesincluderecognitionas
avaluedcustomerinMorocco,EgyptandPakistanandcharitabledonationsinEgyptand
Morocco.
• Consumerscraveflexibleloyaltyprograms.Roughlyeightin10globalloyalty-program
participantssayitissomewhatorveryappealingtobeabletoearnrewardsregardlessof
whetherapurchasewasmadeinstore,onawebsiteoronamobiledevice(81%)andtochoose
amongseveraltypesofrewards(79%).
• DigitaltoolsandfeaturesareparticularlyappealinginAsia-Pacific,wherethehighest
percentageofloyalty-programparticipantsintheworldwidestudyrateasappealingstore-
specificloyaltymobileapps(69%),integrationwithdigitalpaymentsystems(78%)and
integrationwiththird-partyappsthatconsolidateloyalty-programinformation(63%).
3Copyright © 2016 The Nielsen Company
Whenitcomestoshopping,choiceistheoperativeword.Whether
consumersshopataspecialtyretaileroramassmerchandiser,ona
computeroramobiledevice,theyhaveneverhadsomanywaysto
pleasethepalate,discoverthedealorpaythepiper.Differentiatingyour
brandinsuchacrowdedspaceisnotonlycritical,butalsomoredifficult
thanever.
Aretailloyaltyprogramcanbeaneffectivewaytocreatecompetitive
advantagebyreducingcustomers’likelihoodtoswitchstores.Indeed,
morethansevenin10loyalty-programparticipantsinNielsen’sGlobal
Loyalty-SentimentSurvey(72%)somewhatorstronglyagreethat,all
otherfactorsequal,theywillbuyfromaretailerwithaloyaltyprogram
overonewithout.Loyaltyprogramscanalsohelpdrivemorefrequent
visitsandheavierpurchasing.Nearlythree-quartersofgloballoyalty-
programparticipants(74%)agreethatloyaltyprogramsmakethem
morelikelytocontinuedoingbusinesswithacompany,andtwo-thirds
(67%)agreethattheyshopmorefrequentlyandspendmoreatretailers
withloyaltyprograms.
Brick-and-mortarretailersarenottheonlyonesbenefitingfrom
loyalty-programparticipation.Two-thirdsofglobalrespondents(66%)
agreethey’dshopmoreatonlineretailersifthesesellersprovided
loyaltybenefitssimilartothoseoftraditionalin-storeretailers.And
increasingly,loyaltyprogramsareattheleadingedgeoftechnologyas
retailersincorporateadvancedanalytics,mobileexperiencesandother
digitalsolutionsintotheirprograms.
Andmanyshoppersappeartoloveloyaltyprograms.Infact,66%of
globalrespondentssaytheybelongtooneormoreprograms.Butthere
isoftenalargegapbetweenthenumberofprogramsinwhichshoppers
areenrolledandthenumberinwhichtheyactivelyparticipate.Sowhat
distinguishesthewinnersfromtherestofthepack?Whilemanytried-
and-trueretailloyalty-programfundamentalscanbeappliedanywhere
intheworld,therealsoareuniquedifferencesbycountry.Forexample,
mobileloyaltyappsareparticularlyappealinginIndiaandChina,while
non-monetaryretailloyaltyrewardprogramsareimportantinMorocco.
Knowingwhatprogramattributesresonatebestwithyourcustomerswill
equipyoutodriveengagement.
67% AGREE THAT THEY SHOP MORE
FREQUENTLY AND SPEND MORE AT
RETAILERS WITH LOYALTY PROGRAMS.
4 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
“Loyaltyprogramsareintendedtoultimatelyincreasearetailer’sshare
oftheconsumer’swallet,”saidLouiseKeely,executivevicepresident,
NielsenGlobalRetailPractice.“Butloyaltyprogramscannotbe
designedinaone-size-fits-allmanner.Therearebigdifferencesinloyalty
programpreferencesandhabitsacrosscountries,andacrossconsumer
groupswithincountries.Thesedifferencesincludehowconsumerswant
tousetechnologytoengagewiththeirloyaltyprogram,whattangible
benefitstheyareseekingfromloyaltyprograms,andevenhowmuch
theycareaboutloyaltyprograms.Retailersneedtodetermine whothey
wanttobringintothestoreorontothewebsitemore,anddesigna
loyaltyprogramforthem.”
TheNielsenGlobalRetailLoyalty-SentimentSurveypolledmorethan
30,000onlinerespondentsin63countriestounderstandwhatdrives
consumerstoparticipateinretailloyaltyprograms.Weexaminedself-
reportedparticipationrates,therewardsorbenefitsvaluedmost,and
thefeaturesthataremostappealingintheloyaltyprogramsofthe
future.Finally,weprovideinsightintothewaystobuildandmaintaina
winningloyaltyprogram.
ABOUT THE GLOBAL SURVEY METHODOLOGY
Thefindingsinthissurveyarebasedonrespondents
withonlineaccessin63countries.Whileanonlinesurvey
methodologyallowsfortremendousscaleandglobalreach,it
providesaperspectiveonthehabitsofonlyexistinginternet
users,nottotalpopulations.Indevelopingmarketswhere
onlinepenetrationisstillgrowing,respondentsmaybe
youngerandmoreaffluentthanthegeneralpopulationofthat
country.Inaddition,surveyresponsesarebasedonclaimed
behavior,ratherthanactualmetereddata.Culturaldifferences
inreportingsentimentarelikelyfactorsintheoutlookacross
countries.Thereportedresultsdonotattempttocontrolor
correctforthesedifferences;therefore,cautionshouldbe
exercisedwhencomparingacrosscountriesandregions,
particularlyacrossregionalboundaries.
5Copyright © 2016 The Nielsen Company
MONEY MAKES THE LOYALTY PROGRAM GO ‘ROUNDItshouldcomeasnosurprisethatforthemajorityofrespondents,financialincentivesaretheprimaryreasonforparticipatinginloyaltyprograms.Two-thirdsofglobalrespondentswhoparticipateinloyaltyprograms(67%)somewhatorstronglyagreethattheyjointheseprogramsonlytogetfreeproductsordiscounts.Whenitcomestothemost-valuedloyalty-programbenefits,monetaryincentivestopthelistineveryregion,byawidemargin.Morethanhalfofgloballoyalty-programparticipants(51%)sayproductdiscountsareamongthethreemostvaluedbenefits,anddiscountsareparticularlypopularinEurope(62%).Fewerglobalprogramparticipants(45%)sayrebatesorcashbackareamongthemost-valuedbenefits,butcashbackisslightlymorepopularthandiscountsinNorthAmerica(49%versus46%)andLatinAmerica(48%versus47%).However,creatingmeaningfuldifferentiationrequiresofferingmorethangenericdeals.
“Whiletangiblediscountsareausagedriverforloyaltyprograms,share-drivingprogramsgofarbeyondthesebenefits,”saidKeely.“Tailoringloyaltybenefitsforspecificconsumers,andusingtheloyaltyprogramengagementvehicles—beitviaanapp,email,orin-storeinteraction—allallowretailerstopersonalizetheloyaltyprogramsothatit’snotjustadiscountvehicle.Providingadvice,tailoredofferings,andotherserviceswilldelighttheloyalty-programmember.Inthisway,thereisnooneloyaltyprogram—eachshopperwillhavehisorherownversionoftheprogram,tailoredtohisorspecificneeds.”
Financialrewardsarethemosthighly-valuedloyalty-programbenefitsformembersofallages,butproductdiscountsandcashbackorrebatesareratedhigherbyolderrespondentsthanbytheiryoungercounterparts.Youngerloyalty-programparticipantsvalueafewnon-monetarybenefitsmorehighlythantheiroldercounterparts,thoughthepercentageswhosaytheseareamongthetopthreebenefitsareratherlow.FifteenpercentofMillennialssayhigher-priorityservice,suchasfirst-classseatingorVIPcustomerserviceisoneoftheirtopthreeloyalty-programbenefits,morethandoublethepercentageofBabyBoomersandSilentGenerationrespondents(6%ofeachgroup)whosayso.Inaddition,12%ofMillennialssaytheirmost-valuedbenefitsincludepersonalizedproductsorserviceexperiences,and10%saythesameofcharitabledonations.TheseresponseratesaremorethanthreetimeshigherthanforBabyBoomers(3%foreachtypeofbenefits)andSilentGenerationrespondents(4%and3%,respectively).
FINANCIAL INCENTIVES DRIVE LOYALTY PROGRAM PARTICIPATION
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
PRODUCT DISCOUNTS 51%
45%
33%
32%
22%
15%
13%
12%
12%
10%
7%
REBATES OR CASH BACK
FREE PRODUCTS
FREE SHIPPING
FREQUENT FLYER POINTS
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
DISCOUNTED SHIPPING
HIGHER PRIORITY SERVICE
RECOGNITION AS A VALUED
CUSTOMER
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
CHARITABLE DONATION
MONETARY NON-MONETARY
Base: All respondents who are members of retail loyalty programs Note: Respondents could select top three benefits Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016
%
6 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
MILLENNIALS RATE MANY NON-MONETARY BENEFITS MORE HIGHLY THAN BOOMERS
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
PRODUCT DISCOUNTS
FREQUENT FLYER POINTS
RECOGNITION AS A VALUED
CUSTOMER
HIGHER PRIORITY SERVICE
PERSONALIZED PRODUCTS OR SERVICE
EXPERIENCES
EXCLUSIVE ACCESS TO SALES OR
MERCHANDISE
CHARITABLE DONATION
REBATES OR CASH BACK
FREE PRODUCTS
FREE SHIPPING
DISCOUNTED SHIPPING
Base: All respondents who are members of retail loyalty programs Note: Respondents could select top three benefitsSource: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016
MO
NET
AR
YN
ON
-MO
NET
AR
Y
48%
21%
12% 10%
12%15% 14%
41% 33% 32% 17%57%
24%
3% 3%
9%6% 14%
54% 33% 34% 9%
MILLENNIALS BOOMERS
%
7Copyright © 2016 The Nielsen Company
FLEXIBILITY IS THE FUTURE OF RETAIL LOYALTYWhenitcomestotheloyalty-programfeaturesmembersarelookingfor,
flexibilityisveryimportant.Morethaneightin10globalloyalty-program
participants(81%)sayit’ssomewhatorveryappealingtobeableto
earnrewardsregardlessofwhetherapurchasewasmadeinstore,on
awebsiteoronamobiledevice.Slightlysmallershares(79%)citethe
abilitytochooseamongseveraltypesofrewards.Morethanthree-
quartersofgloballoyalty-programmembersratetwootherbenefitsas
appealing:personalizedpromotionsbasedonpastpurchasing(77%)
andtheopportunitytoearnbonusesbydoingsomespecifiedactivity
(76%).
“Anomnichannelexperienceisthenewrealityforconsumers,”said
Keely.“Retailerscan’tthinkoftheonlinebrowsingandin-storebuying
experienceasdisparateactivities.Loyaltyprogramsandtheengagement
withmembersshouldengageholisticallyacrossbrick-and-mortarand
digitalchannelsacrosstheentirepathtopurchase,notjustatcheck
out.”
Asadoptionofnontraditionalpaymentmethodsrises,loyalty
programsalsoshouldbeflexibleintermsofpaymenttype.Two-thirds
ofgloballoyalty-programparticipants(67%)sayintegrationwitha
mobilepaymentsystemissomewhatorveryappealing,sotheycan
automaticallyearnanduserewardswhentheyuseamobilewallet.
Mobile-walletintegrationisevenmoreappealinginAsia-Pacific(78%)
andLatinAmerica(75%)thanglobally.
“Mobilepaymentsplatformswillincreasinglyprovideanopportunityfor
loyalty-programengagementwithconsumers,providingaconvenient
andpersonalizedwayforprogrammembersandretailerstoengagewith
oneanotherallalongthepathtopurchase,”saidKeely.
8 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
MAKE LOYALTY PROGRAMS FLEXIBLE, PERSONAL AND REWARDING
PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
REWARDS
TECHNOLOGY
Base:Allrespondentswhoaremembersofretailloyaltyprograms
Source:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
81%
79%
77%
62%
76%
67%
60%
67%
62%
60%
51%
TECHNOLOGY-BASED LOYALTY-PROGRAM FEATURES ARE MUCH MORE APPEALING TO MILLENNIALS THAN BABY BOOMERS
9Copyright © 2016 The Nielsen Company
80%
81%
79%
69%
81%
72%
69%
76%
72%
70%
63%
79%
75%
70%
45%
65%
51%
45%
48%
40%
40%
29%
Flexiblerewards,integrationacrosschannels,andpersonalized
promotionaloffersarehighlyappealingtorespondentsofallages.
However,notsurprisingly,youngerloyalty-programmembersaremore
likelythantheiroldercounterpartstorecognizetheappealofthese
features—particularlythoseregardingmobileorsocial-mediaintegration.
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
TECHNOLOGY-BASED LOYALTY-PROGRAM FEATURES ARE MUCH MORE APPEALING TO MILLENNIALS THAN BABY BOOMERS
PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
REWARDS
TECHNOLOGY
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
MILLENNIALS BOOMERS
10 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
REGIONAL ROUNDUP
LOYALTY LANDSCAPE
AROUND THE WORLD
11Copyright © 2016 The Nielsen Company
ASIA-PACIFIC: AN APPETITE FOR APPSInthemore-developedmarketsofAsia-Pacific,smaller-formatstores
(conveniencestoresandmini-markets)aretheprimaryretailgrowth
engines,asurbanshoppersincreasinglyseekconvenientoptions
compatiblewiththeiron-the-golifestyles.Meanwhile,large-formatstores
areincreasinglyreliantonpromotionstomaintainsalesgrowth,creating
aviciouscyclethatcanoftenresultinadeclineinsalesovertime.To
breakthecycleandtofindgrowthinatoughretailenvironment,retailers
lookingtofindacompetitiveadvantageareusingwell-designedloyalty
programsthatproviderelevantoffersthatdrivecustomerengagementand
incrementalrevenueopportunities.
RetailloyaltyprogramsarewellestablishedinSoutheastAsia,thePacific
andChina,datingbacktothemid-tolate1990s;inIndia,theywere
introducedinthelate2000s.Giventheirlonghistory,it’snosurprisethat
onlinerespondentsintheregionareavidloyalty-programmembers.More
thansevenin10consumerswithonlineaccessinIndiaandSoutheastAsia
saytheyparticipateinoneormoreretailloyaltyprograms(74%and72%,
respectively).Vietnam,NewZealandandAustraliahavethehighestself-
reportedratesofloyalty-programparticipationintheregion(84%,84%
and83%,respectively),followedcloselybyJapan(80%),Korea(77%)and
Malaysia(77%).ParticipationislowerinGreaterChina(61%),butChinese
retailersarenowfocusingmoreonloyaltyprogramsforseveralreasons.
First,e-commerceisgrowingfast,andoff-lineretailersareunderintense
pressuretoprotecttheirshare.Inaddition,slowingeconomicgrowth
ishurtingfast-movingconsumergoods(FMCG)retailers.Finally,more
Chineseconsumersarepayinggreaterattentiontothequalityofproducts
andtheoverallshoppingexperience.
Howdoloyalty-programparticipantsindicatethey’reamemberofthe
program?Itvariesbymarket.Presentingamembershipcardtobescanned
instoreisthemostcommonmethodinseveralofthemostmatureloyalty
markets,includingNewZealand(85%),Australia(81%)andJapan(62%).
DigitalmethodsaremorecommonlyusedinAsia.Lookinguptheaccount
byprovidinganassociatedphonenumberoremailaddressinstoreismost
commoninTaiwan(60%),Vietnam(60%)andIndia(52%),whilelogging
intoaretailerwebsiteisthemostcommonmethodinChina(51%)and
Indonesia(47%).Inafewmarkets,mobilehasemergedasthechannelof
choice.Usingaretailer’smobileappisthemostcommonlycitedmethod
inThailand(49%)andKorea(40%,tiedwithscanningthecardinstore).
China(47%)andIndia(45%)alsoexceedtheglobalaveragewhenit
comestotheuseofaretailer’smobileapp,aswellasthird-partyappsthat
consolidateprograminformation(39%and36%,respectively)andmobile
paymentsystems(38%and38%,respectively).
VIETNAM, NEW ZEALAND AND AUSTRALIA HAVE THE HIGHEST SELF-REPORTED RATES OF LOYALTY-PROGRAM PARTICIPATION IN ASIA-PACIFIC.
12 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
DIGITAL MEMBERSHIP METHODS ARE POPULAR IN EMERGING ASIAN MARKETS
HOW DO YOU INDICATE THAT YOU’RE A LOYALTY-PROGRAM MEMBER?
Scan card in store
Look up account by providing phone number, email address or other personal information in store
Enter information or log into account on retailer website
Use retailer's mobile app
Enter and store loyalty program information in a third-party app that allows me to store multiple reward cards in one place
Enter and store loyalty program information into digital payment system
TaiwanVietnam
IndiaIndonesia
ChinaThailand
Hong KongMalaysia
SingaporeSouth Korea
PhilippinesNew Zealand
VietnamChina
MalaysiaIndonesiaSingapore
ThailandIndia
PhilippinesHong Kong
TaiwanJapan
South Korea
ThailandChinaIndia
South KoreaVietnam
IndonesiaPhilippines
Hong KongSingapore
MalaysiaTaiwanJapan
AustraliaNew Zealand
China India
Vietnam South Korea
Indonesia Thailand Malaysia
Philippines Singapore
Taiwan Hong Kong
Australia Japan
New Zealand
China India
Thailand Indonesia Vietnam
Philippines Malaysia
Singapore Hong Kong
South Korea Taiwan
Australia Japan
New Zealand
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
New Zealand Australia
Japan Philippines
Malaysia Singapore
Taiwan Vietnam
India China
South Korea Hong Kong
AustraliaJapan
New ZealandAustralia
IndonesiaThailand
Global Average Global Average Global Average
Global Average Global Average Global Average
Note:MarketclassificationbasedonIMFdefinitions
Base:Allrespondentswhoaremembersofretailloyaltyprograms
Source:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
OLD
ER M
ETH
OD
SN
EWER
MET
HO
DS
46%
42%
43%
32% 32%
45%
REGIONAL AVERAGE ADVANCED ECONOMIES DEVELOPING/EMERGING ECONOMIES
13Copyright © 2016 The Nielsen Company
Digitalloyalty-programattributesorfeaturesareparticularlyappealing
intheregion.Asia-Pacifichasthehighestpercentageofloyalty-program
participantsintheworldwidestudywhosaystore-specificloyaltymobile
appsaresomewhatorveryappealing(69%versus60%globally).
MobileappsareparticularlyattractiveinIndia(80%),Thailand(78%)
andChina(74%).Integrationwithdigitalpaymentsystems(78%)and
withthird-partyappsthatconsolidateloyalty-programinformation
(63%)alsoaremoreappealingintheregionthanglobally(67%and
51%,respectively),withIndia,ChinaandThailandthemostenthusiastic
supporters.
Infact,mobilefeaturesaresohighlydesirablethatmorethantwo-thirds
ofloyalty-programmembersinAsia-Pacific(69%)somewhatorstrongly
agreethey’remorelikelytoparticipateinaloyaltyprogramifamobile
appisavailable,comparedwith56%globally.
“Undoubtedly,digitalstrategiesmustbeacorepartofanyretailer
loyaltyprograminAsia-Pacific,andweexpecttoseemoreinteractive
marketingwithcross-sellbyretailpartnersandincentivesbasedupon
physicallocation,”saidAlexMorgan,executivedirectorofgloballoyalty,
NielsenAsia-Pacific.
Withrespecttothemost-valuedbenefits,productdiscounts(51%)and
rebatesorcashback(45%)topthelistinnearlyallcountriesinthe
region.Theonlyexceptions:JapanandIndonesia,wherefreeshipping
(51%and45%,respectively)issecondbehindproductdiscounts(59%
and64%,respectively),andKorea,wherediscountsandfrequent-flier
pointsarevaluedequally(60%foreachbenefit).
OF LOYALTY-PROGRAM MEMBERS AGREE THAT THEY’RE MORE LIKELY TO PARTICIPATE IN A LOYALTY PROGRAM IF A MOBILE APP IS AVAILABLE.
69%
14 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
78%
81%
69%
73%
68%
71%
69%
63%
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
TECHNOLOGY-BASED FEATURES ARE HIGHLY DESIRABLE IN ASIA
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
TECHNOLOGY
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR
LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
CHINA 89%PHILIPPINES 86%INDIA 84%SINGAPORE 83%THAILAND 83%VIETNAM 83%
INDIA 86%THAILAND 86%PHILIPPINES 85%CHINA 83%TAIWAN 82%
CHINA 85%PHILIPPINES 85%INDIA 84%THAILAND 84%MALAYSIA 80%
BONUSES/STATUS
83%
79%
79%
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
INDIA 85%CHINA 84%THAILAND 80%PHILIPPINES 76%INDONESIA 75%
15Copyright © 2016 The Nielsen Company
MONETARY LOYALTY REWARDS ARE HIGHLY VALUED IN ASIA-PACIFIC
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
PRODUCT DISCOUNTS
TOP COUNTRIES FOR SELECTED MONETARY
MOTIVATORS
PRODUCT DISCOUNTS
REBATES OR CASH BACK
FREE SHIPPING
FREE PRODUCTS
FREQUENT FLYER POINTS
HIGHER PRIORITY SERVICE
EXCLUSIVE ACCESS TO SALES OR MERCHANDISE
RECOGNITION AS A VALUED CUSTOMER
TOP COUNTRIES FOR SELECTED NON-
MONETARY MOTIVATORS49%
44%
34%
29%
25%
16%
16%
15%
13%
13%
8%
REBATES OR CASH BACK
FREQUENT FLYER POINTS
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
DISCOUNTED SHIPPING
HIGHER PRIORITY SERVICE
RECOGNITION AS A VALUED
CUSTOMER
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
CHARITABLE DONATION
FREE PRODUCTS
FREE SHIPPING
Base:AllrespondentswhoaremembersofretailloyaltyprogramsNote:RespondentscouldselecttopthreebenefitsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
INDONESIA 64%MALAYSIA 63%SINGAPORE 62%SOUTH KOREA 60%JAPAN 59%
TAIWAN 73%SINGAPORE 67%HONG KONG 61%MALAYSIA 60%CHINA 52%PHILIPPINES 52%
JAPAN 51%INDONESIA 45%VIETNAM 37%INDIA 36%SOUTH KOREA 36%
PHILIPPINES 45%INDONESIA 43%NEW ZEALAND 41%MALAYSIA 40%THAILAND 37%
SOUTH KOREA 60%AUSTRALIA 37%CHINA 32%JAPAN 27%VIETNAM 26%
VIETNAM 21%INDIA 20%INDONESIA 19%CHINA 17%PHILIPPINES 17%
JAPAN 26%SOUTH KOREA 24%TAIWAN 23%THAILAND 18%SINGAPORE 16%
NEW ZEALAND 20%INDIA 18%PHILIPPINES 18%VIETNAM 16%AUSTRALIA 13%SINGAPORE 13%
MONETARY NON-MONETARY
%
TECHNOLOGY-BASED FEATURES ARE HIGHLY DESIRABLE IN ASIA
16 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
EUROPE: NAVIGATING A LONG-STANDING LOYALTY LABYRINTHLoyaltyprogramsarewellestablishedinEurope,andprogramscanbe
quitecomplex.Someretailersofferstand-aloneprograms,whileothers
arepartofcoalitionprogramsthatspanmultipleretailers.Someeven
offermultipleprograms,providingtime-limitedpromotionsinaddition
totheirownprogramsorparticipationinaloyaltycoalition.
Nearlytwo-thirdsofonlinerespondentsinEurope(66%)saythey
belongtooneormoreloyaltyprograms.Participationratesvarywidely,
however.WhileEuropehassomeofthehighestself-reportedratesin
theworldwidestudy,italsohassomeofthelowest.Ninety-fourpercent
ofrespondentsinFinland,90%intheU.K.and89%inLithuania
andSloveniasaytheyparticipateinaloyaltyprogram,thehighest
percentagesinthestudy.However,fewerthanhalfofrespondentsin
Kazakhstan(41%)andDenmark(49%)saytheybelongtooneormore
programs.Andparticipationisn’tmuchhigherinRussia(53%),Turkey
(54%),theNetherlands(54%)orUkraine(55%).
Whenitcomestothemethodsloyalty-programparticipantsuseto
indicatemembership,scanningacardinastore—citedby69%of
Europeanrespondents—isthemostcommonmethodusedinevery
countryintheregion.Butit’sparticularlydominantinsomemarkets,
suchasFinland,wherethismethodiscitedby93%ofloyalty-program
participants,followedbyIreland(84%),Latvia(84%),theU.K.(82%),
theCzechRepublic(80%)andAustria(80%).However,in-storecard
scanningisthemainmethodusedbyminoritiesofloyalty-program
participantsinothercountries,includingTurkey(49%),Spain(45%)and
Israel(41%).InTurkey,nearlyasmanyrespondents(48%)saytheway
theyindicatethey’realoyalty-programmemberisbyprovidingpersonal
informationinstore;inIsrael,usingaretailer’smobileappisaclose
second(40%).InSpain,nearlyone-third(31%)saytheirusualmethodis
loggingintoanaccountonline.
17Copyright © 2016 The Nielsen Company
Mobile-basedusagemethodsareconsiderablylesscommoninmost
Europeancountries.Thisfindingisconsistentwithfindingsabout
otherconsumerbehaviors:Mature-marketconsumersaregenerally
slowertoadoptnewdigitaltechnologiesforpayments,onlineshopping,
andsocialmedia.Lessthanone-fifthofEuropeanloyalty-program
participants(18%)saytheyusearetailer’smobileapptoindicatethey’re
aprogrammember,andlessthanone-tenthsaytheystoremembership
informationinthird-partyappsormobilewallets(7%each),thelowest
levelsglobally.Retailermobileappsaremorepopularintwoofthe
marketswiththelowestuseofphysicalcards:Israel(40%)andTurkey
(38%).Turkeyalsohasthehighestself-reporteduseofthird-partyapps
inEurope(17%),followedbyIreland(14%)andRomania(13%).
“Loyaltyprogramsmustembracechanneldiversity,sincetheycanbe
avitalenablerinpreventingthebasket-splittingbehaviorsthatare
affectingretailrevenues,”saidAdrianBaker,retailproductleader,
Nielsen.“Customersareshoppingonline,usingmobileapps,and
benefitingfromdeliveryoptions,suchasclickandcollect,allactivities
wheretheirloyaltycardcanbeautomaticallylinkedtotheaccount.
Ofcourse,thedistinctionbetweendigitalandin-personshoppingis
importanttounderstand,butretailersreallyneedtodeterminethe
driversofthatchangeinordertosetstrategiestowininthiscrucial
battleground.Thisiswheretheuniqueidentifierforeachmemberofa
loyaltyschemeplayssuchanimportantrole.”
18 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
OLD-SCHOOL METHODS DOMINATE IN EUROPE
HOW DO YOU INDICATE THAT YOU’RE A LOYALTY-PROGRAM MEMBER?
Scan card in store Use retailer's mobile app
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% FinlandIreland
LithuaniaUnited Kingdom
AustriaCzech Republic
ItalyCroatia
Latvia Belgium
NetherlandsGermanyHungarySwedenSlovenia
DenmarkEstonia
SwitzerlandSlovakiaNorway
Portugal Belarus Greece
Romania Ukraine
Russia Serbia
France Poland
Bulgaria Kazakhstan
Turkey Spain Israel
Global Average Global Average
Israel Turkey
Portugal Norway
Serbia Switzerland
Romania Bulgaria
Spain Greece Croatia Russia
Slovenia Austria
Ukraine Belarus
Kazakhstan Poland
Netherlands Sweden
United Kingdom Denmark
Italy Slovakia
Germany Czech Republic
Finland France
Belgium Ireland
Hungary Lithuania
Latvia Estonia
OLDER METHODS NEWER METHODS
Note:MarketclassificationbasedonIMFdefinitionsBase:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
REGIONAL AVERAGE ADVANCED ECONOMIES DEVELOPING/EMERGING ECONOMIES
Look up account by providing phone number, email address or other personal information in store
Enter and store loyalty program information in a third-party app that allowsme to store multiple reward cards in one place
Enter and store loyalty program information into digital payment system
Enter information or log into account on retailer website
REGIONALAVERAGE
REGIONALAVERAGE
GLOBALAVERAGE
GLOBALAVERAGE
24% 7%
29% 7%
36% 23%
39% 23%
69% 18%
19Copyright © 2016 The Nielsen Company
Monetaryrewards,particularlyproductdiscounts,arequiteenticing
forEuropeanloyalty-programparticipants.Sixty-twopercentofloyalty-
programmembersintheregionsayproductdiscountsareamong
theirthreemostvaluedbenefits,thehighestpercentageinthestudy
byawidemargin(thenext-highestpercentageis49%inAsia-Pacific).
Productdiscountsarethemost-preferredbenefitinthemajorityof
countriesinEuropewithafewexceptions:Rebatesorcashbackare
preferredinGreece(68%),Hungary(68%)andtheScandinavian
countriesofFinland(70%),Norway(59%),Sweden(58%)andDenmark
(55%).RespondentsinItalyandSwitzerlandhaveequalpreferences
forproductdiscountsandrebatesorcashback(58%foreachtypeof
benefitinItalyand56%inSwitzerland).
Acrosstheregionasawhole,fewloyalty-programparticipantsinclude
non-monetarybenefitsamongtheirtopincentives,butthesebenefits
areimportantinsomemarkets.Whileonly14%ofEuropeanparticipants
sayexclusiveaccesstosalesormerchandiseisamongtheirmost-valued
benefits,thisbenefitisamongthemostvaluedfor55%ofrespondents
inFinland,37%inPortugal,31%inUkraine,28%inBelarusand27%
inRussia.Recognitionasavaluedcustomerismorehighlyvaluedin
Ireland(20%)andtheU.K.(20%)thaninEuropeasawhole(10%).
Likewise,only6%ofEuropeanrespondentssayhigher-priorityservice
isamongtheirtopthreebenefits,butthepercentageplacingitinthe
topthreeistriplethatnumberinTurkey(18%)andatleastdoublein
Kazakhstan(16%),Ukraine(15%)andIsrael(12%).
20 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
MONETARY PERKS DOMINATE IN EUROPE
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
PRODUCT DISCOUNTS
TOP COUNTRIES FOR SELECTED MONETARY
MOTIVATORS
PRODUCT DISCOUNTS
REBATES OR CASH BACK
FREE SHIPPING
FREE PRODUCTS
FREQUENT FLYER POINTS
HIGHER PRIORITY SERVICE
EXCLUSIVE ACCESS TO SALES OR MERCHANDISE
RECOGNITION AS A VALUED CUSTOMER
TOP COUNTRIES FOR SELECTED NON-
MONETARY MOTIVATORS62%
46%
38%
25%
17%
14%
10%
9%
6%
6%
5%
REBATES OR CASH BACK
FREE PRODUCTS
FREE SHIPPING
FREQUENT FLYER POINTS
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
% DISCOUNTED SHIPPING
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
CHARITABLE DONATION
RECOGNITION AS A VALUED
CUSTOMER
HIGHER PRIORITY SERVICE
Base:AllrespondentswhoaremembersofretailloyaltyprogramsNote:RespondentscouldselecttopthreebenefitsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
UKRAINE 87%RUSSIA 85%BELARUS 82%KAZAKHSTAN 82%CZECH REPUBLIC 79%ESTONIA 79%CROATIA 79%
FINLAND 75%GREECE 68%HUNGARY 68%SLOVENIA 67%AUSTRIA 63%GERMANY 63%
AUSTRIA 40%SPAIN 39%ROMANIA 39%SLOVAKIA 38%TURKEY 37%BELARUS 37%
CROATIA 57%NETHERLANDS 52%POLAND 49%BELGIUM 47%SPAIN 44%ITALY 44%
DENMARK 47%GREECE 45%FRANCE 44%ESTONIA 43%SWEDEN 41%
TURKEY 18%KAZAKHSTAN 16%UKRAINE 15%ISRAEL 12%BULGARIA 9%
FINLAND 55%PORTUGAL 37%UKRAINE 31%BELARUS 28%RUSSIA 27%
UNITED KINGDOM 20%IRELAND 20%NETHERLANDS 15%TURKEY 15%SWITZERLAND 13%SERBIA 13%KAZAKHSTAN 13%
MONETARY NON-MONETARY
21Copyright © 2016 The Nielsen Company
Likemostloyalty-programparticipantsaroundtheworld,themajority
ofEuropeanmemberswanttoearnrewardsacrosschannelsand
chooseamongseveralredemptionoptions.Three-quartersofEuropean
loyalty-programparticipantsrateeachofthesefeatures(75%and74%,
respectively)assomewhatorhighlyappealing.Alsohighlyratedare
personalizedpromotionaloffers(citedby72%)andbonusopportunities
(71%).
“PersonalizationisthefutureofloyaltyprogramsinEurope,anditwill
beapowerfultoolforbreakingthepromotion-dependencycyclethatis
soprevalentintheregion,”saidPetrKriklan,directorofretailanalytics,
CentralandEasternEurope,Nielsen.“Personalizationisstillinits
nascentstages,however,andmanyretailershaven’tfullydetermined
howtobestusetheirdatatoensurethey’rereachingtheright
customers.Rather,theyexecutesimplemass-segmentstrategiesthat
aren’treflectiveofindividualneedsandpreferences.Tomoveloyalty
programsforward,retailersneedtoadvancetheiranalyticscapabilities
byimprovingtheirinternalcapabilitiesandpartneringwithexperts
whocanprovideevenricherdataandpowerfultoolsthatenabletrue
customization.”
Tieredprogramsandmobilefeaturesaresignificantlylessenticing
inEuropethanglobally.LessthanhalfofEuropeanloyalty-program
participantssaytieredprogramswithexclusiverewardsforcustomers
who’veachievedaparticularlevelorstatusareappealing(47%).Similar
percentagessayastore-specificmobileapp(47%)orintegrationwith
amobilepaymentsystem(49%)isappealing.Butthereareclear
exceptionstotheregionaltrend.
Mobileappsareextremelyappealinginseveraloftheemerging
Europeanmarkets,includingUkraine(81%),Russia(80%),Kazakhstan
(74%)andTurkey(73%).Mobile-walletintegrationisalsoratedmore
favorablyinthesemarketsandafewothers.Eightypercentofloyalty-
programparticipantsinTurkey,72%inKazakhstan,67%inSerbiaand
Greece,65%inBelarusandRussia,and64%inUkrainesayintegration
withamobilepaymentsystemisappealing.
Integrationwithathird-partyappthatconsolidatesloyalty-program
informationhasverylimitedappealinEurope;only28%saythisfeature
isappealing.Likeretailerappsandmobilewallets,however,thisfeature
ismoreattractiveinTurkey(62%),Serbia(41%),Romania(38%)and
Greece(37%).Bulgaria(37%)alsoexceedstheregionalaverage.
22 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
49%
74%
55%
47%
47%
44%
28%
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
TECHNOLOGY-BASED FEATURES HAVE ROOM TO GROW IN EUROPE
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
TECHNOLOGY
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR
LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
CROATIA 83%TURKEY 83%SERBIA 83%GREECE 81%HUNGARY 80%ROMANIA 80%BELARUS 80%KAZAKHSTAN 80%
TURKEY 87%CROATIA 84%ISRAEL 81%PORTUGAL 81%SERBIA 81%
BELARUS 88%RUSSIA 87%UKRAINE 87%SERBIA 87%KAZAKHSTAN 85%
BONUSES/STATUS
71%
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TURKEY 80%KAZAKHSTAN 72%GREECE 67%SERBIA 67%RUSSIA 65%BELARUS 65%
75%
49%
72%
23Copyright © 2016 The Nielsen Company
AFRICA/MIDDLE EAST: FINDING VALUE IN PERSONALIZED PERKSJustoverhalfofonlinerespondentsinthesixcountriessurveyedinAfrica/
MiddleEast(55%)saytheybelongtooneormoreloyaltyprograms,but
participationratesvarydramatically.ParticipationishighestinSouth
AfricaandtheUnitedArabEmirates,wheremorethanthree-quartersof
respondentssaythey’remembersofretailloyaltyprograms(84%and77%,
respectively).InEgyptandPakistan,however,lessthanhalf(45%and38%,
respectively)saytheyparticipateinaretailloyaltyprogram.
“InAfricaandtheMiddleEast,participationinretailloyaltyprogramsis
closelytiedtothestrengthofmoderntrade,”saidCraigHenry,managing
director,RetailerVertical,AfricaandMiddleEast,Nielsen.“Moderntrade
isstillinagrowthphase,withveryearly-stagedevelopmentinmany
countriesintheregion.ThehighmembershiprateinSouthAfricaspeaks
totherelativelylonghistoryofloyaltyprogramsandhighpenetrationin
themarket.InEgypt,however,loyaltyprogramsandmoderntradearestill
intheirinfancy,andpenetrationislowerduetohigherratesofshoppingat
traditionaltradeoutletsandpressureonconsumerspending.”
Justasdiversearethewaysloyalty-programparticipantsindicatethey’re
members.SouthAfricahasoneofthehighestincidencesofphysicalcard
useintheworld(82%),whileEgypthasoneofthelowestrates(26%).
Roughlyone-thirdofloyalty-programparticipantsineverycountryin
theregionlookuptheiraccountbyprovidingaphonenumberoremail
addressinstore,andit’sthemostcommonlyusedmethodinEgypt(35%).
Inaddition,morethanthreein10programmembersineverycountry
intheregionexceptSouthAfricasaytheyenterinformationorloginto
theiraccountonaretailerwebsite.Infact,that’sthemostcommonly
usedmethodinMoroccoandSaudiArabia,citedby39%and36%of
respondents,respectively.InSouthAfrica,only21%saytheylookuptheir
accountinstorebyprovidingpersonalinformation.
Theuseofaretailer’smobileappismorecommoninPakistan(33%)than
theothercountriesintheregion(25%onaverage).Fewerthanone-fifth
ofAfrica/MiddleEasternloyalty-programparticipantshaveenteredtheir
programinformationinamobilewallet(19%)orthird-partyapp(16%),
24 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
buttheuseofmobilewalletsisnotablyhigherinMorocco(25%),which
alongwiththeUnitedArabEmiratesalsohasabove-averageuseofthird-
partyapps(21%and25%,respectively).
“Technologyadoptionratesandtheageoftheloyaltyprogrampossibly
playaroleinthewayinwhichretailersengagewithshoppers,”said
Henry.“Thenewertheprogram,thelesslikelyitistobecardbased.”
A MIX OF OLD AND NEW METHODS ARE USED IN AFRICA/MIDDLE EAST
HOW DO YOU INDICATE THAT YOU’RE A LOYALTY-PROGRAM MEMBER?
NEW
ER M
ETH
OD
SO
LDER
MET
HO
DS
Base:Allrespondentswhoaremembersofretailloyaltyprograms Source:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
53%
25%
23%
Scan card in store
Look up account by providing phone number, email address or other personal information in store
Enter information or log into account on retailer website
Use retailer's mobile app
Enter and store loyalty program information in a third-party app that allows me to store multiple reward cards in one place
Enter and store loyalty program information into digital payment system
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
South Africa United
Arab EmiratesUnited
Arab Emirates
UnitedArab Emirates
UnitedArab Emirates
Pakistan
Saudi Arabia
Egypt
Morocco
Global Average
Morocco
Saudi Arabia
Pakistan
Egypt
South Africa
Global Average
Egypt
Pakistan
Saudi Arabia
United Arab Emirates
South Africa
Morocco
Global Average
Pakistan
South Africa
Morocco
Egypt
Saudi Arabia Global Average
21%
17%
16%
14%
13%
Morocco
Saudi Arabia
Pakistan
Egypt
South Africa Global Average
Morocco
Pakistan
Egypt
Saudi Arabia
South Africa Global Average
UnitedArab Emirates
46%
25%
31%
16%
33%
19%
REGIONAL AVERAGE
25Copyright © 2016 The Nielsen Company
MonetaryrewardsaremorehighlyvaluedinSouthAfricathaninthe
restofthecountriesintheregion.Nearlysevenin10SouthAfrican
loyalty-programparticipantssayrebatesorcashback(69%)orproduct
discounts(67%)areamongtheirtopthreerewards—responseratesthat
are24and16percentagepointsabovetheglobalaverage,respectively.
Whilefinancialincentivesareimportanteverywhere,non-monetary
rewardsareimportanttoanotableportionofrespondentsinthe
region.Recognitionasavaluedcustomerismoreimportantin
Morocco,EgyptandPakistanthanglobally.Infact,inMoroccothis
attributeislistedasthethirdmostvaluedbenefit,citedby26%of
loyalty-programparticipants,thehighestpercentageglobally.Twenty-
onepercentinEgyptand20%inPakistansayrecognitionisamong
thetopthreerewardsvaluedmost.Moroccoalsohasthelargest
percentageofrespondentsinthestudywhosaypersonalizedproducts
andexperiencesareamongthemost-valuedbenefits(18%versus10%
globally),andithasthesecond-highestpercentageofrespondentswho
saycharitabledonationsareamongthemost-preferredrewards(19%),
trailingonlyEgypt(21%).Higher-priorityservicealsoisvaluedmorein
Moroccothanglobally(18%versus12%,respectively).
“Inthemarketswheremodern-tradepenetrationislower,loyalty-
programmemberstendtobemoreaffluentandmorewillingtogive
backtothoseinneed,”saidHenry.“InAfricanandMiddleEastern
countrieswhereMuslimpopulationsaremoreprevalent,wefind
retailershaveloyaltyprogramsthatpromotecharitablegiving,whichis
coretoIslamicvalues.”
OF LOYALTY-PROGRAM PARTICIPANTS IN MOROCCO SAY RECOGNITION AS A VALUED CUSTOMER IS AMONG THEIR THREE MOST VALUED REWARDS, THE HIGHEST PERCENTAGE GLOBALLY.
26%
26 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
%
NON-MONETARY REWARDS ARE IMPORTANT TO A NOTABLEPERCENTAGE IN AFRICA/MIDDLE EAST
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
TOP COUNTRIES FOR SELECTED MONETARY
MOTIVATORS
PRODUCT DISCOUNTS
FREE PRODUCTS
TOP COUNTRIES FOR SELECTED NON-
MONETARY MOTIVATORS42%
41%
38%
27%
18%
14%
13%
12%
11%
11%
10%
FREE PRODUCTS
FREE SHIPPING
DISCOUNTED SHIPPING
HIGHER PRIORITY SERVICE
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
CHARITABLE DONATION
PRODUCT DISCOUNTS
REBATES OR CASH BACK
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
FREQUENT FLYER POINTS
RECOGNITION AS A VALUED
CUSTOMER
Base:AllrespondentswhoaremembersofretailloyaltyprogramsNote:RespondentscouldselecttopthreebenefitsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
SOUTH AFRICA 67%PAKISTAN 45%UNITED ARAB EMIRATES 42%SAUDI ARABIA 38%EGYPT 23%MOROCCO 18%
REBATES OR CASH BACK
SOUTH AFRICA 69%UNITED ARAB EMIRATES 45%SAUDI ARABIA 38%EGYPT 35%MOROCCO 29%PAKISTAN 19%
FREE SHIPPING
PAKISTAN 39%EGYPT 33%SAUDI ARABIA 29%MOROCCO 25%UNITED ARAB EMIRATES 20%SOUTH AFRICA 17%
SOUTH AFRICA 43%EGYPT 41%UNITED ARAB EMIRATES 38%PAKISTAN 38%MOROCCO 33%SAUDI ARABIA 29%
FREQUENT FLYER POINTS
UNITED ARAB EMIRATES 28%SAUDI ARABIA 16%MOROCCO 16%EGYPT 13%PAKISTAN 13%SOUTH AFRICA 9%
HIGHER PRIORITY SERVICE
MOROCCO 18%PAKISTAN 15%SAUDI ARABIA 12%UNITED ARAB EMIRATES 11%EGYPT 10%SOUTH AFRICA 5%
CHARITABLE DONATION
EGYPT 21%MOROCCO 19%SAUDI ARABIA 13%UNITED ARAB EMIRATES 8%SOUTH AFRICA 8%PAKISTAN 6%
RECOGNITION AS A VALUED CUSTOMER
MOROCCO 26%EGYPT 21%PAKISTAN 20%SAUDI ARABIA 14%SOUTH AFRICA 14%UNITED ARAB EMIRATES 13%
MONETARY NON-MONETARY
27Copyright © 2016 The Nielsen Company
Theappealofvariousloyalty-programfeaturesinAfrica/MiddleEast
largelymirrorsthegloballist.Cross-channelintegrationandflexible
rewardsaremostenticing(73%each),whilepersonalizedpromotional
offers(72%)andtheopportunitytoearnbonusesbycompletinga
specifiedactivity(71%)followcloselybehind.Sentimentissimilar
acrossthesixcountriessurveyedintheregion.
73%
63%
65%
58%
61%
58%
48%
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
A WELL-MIXED BALANCE OF FEATURES IS IMPORTANT IN AFRICA/MIDDLE EAST
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
BONUSES/STATUS
TECHNOLOGY
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR
LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
SOUTH AFRICA 84%UNITED ARAB EMIRATES 72%EGYPT 72%PAKISTAN 70%SAUDI ARABIA 68%MOROCCO 58%
SOUTH AFRICA 81%PAKISTAN 78%UNITED ARAB EMIRATES 72%SAUDI ARABIA 72%EGYPT 69%MOROCCO 56%
SOUTH AFRICA 78%PAKISTAN 77%UNITED ARAB EMIRATES 72%EGYPT 68%SAUDI ARABIA 67%MOROCCO 61%
SOUTH AFRICA 71%PAKISTAN 69%SAUDI ARABIA 67%EGYPT 65%UNITED ARAB EMIRATES 63%MOROCCO 56%
66%
71%
72%
73%
28 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
LATIN AMERICA: ROOM FOR LOYALTY-PROGRAM GROWTHLatinAmericahasthelowestself-reportedloyalty-programparticipation
ratesinthesurvey.LessthanhalfofLatinAmericanonlinerespondents
(44%)saytheybelongtooneormoreloyaltyprograms.Participation
ishighestinBrazil(53%)andlowestinArgentina(32%),Mexico(32%)
andVenezuela(33%).Thelowerincidenceisdueinparttothestrength
oftraditionaltradeintheregion,whichaccountsformorethanhalfof
retailsales.Loyaltyprogramsaremostcommoninlarge-formatgrocery
stores(hyper-andsupermarkets)anddepartmentstores.Stand-alone
retailer-specificprogramsarecommon,whilemultiformatretailersallow
shopperstocollectandredeempointsinanyoftheirformats.Stillother
retailersparticipateincoalitionloyaltyprogramsthatspanmultiple
brands.
“Themainretailersineverycountryhavealoyaltyprogram,butthere
isroomforsignificantgrowthintheregion,”saidGiovannaMarquez,
RetailAnalyticsleader,NielsenLatinAmerica.“Moreandmoreretailers
arebuildingloyaltyprograms,andsomeareintegratingpayment
systemsintotheirloyaltyprogramswiththeirowncreditcards,giving
memberstheabilitytoearnadditionalpointsandreceivespecialoffers
whentheyusetheretailer’scard.”
Themostcommonwayloyalty-programparticipantsindicatethey’re
membersisbyenteringinformationorloggingintoanaccountona
retailerwebsite,citedby42%ofLatinAmericanrespondents.Theone
exceptionisMexico,wherethemostcommonmethodisscanninga
cardinastore.Scanningacard—citedby34%ofLatinAmericanloyalty-
programmembers,wellbelowtheglobalaverageof53%—isthesecond
mostcommonmethodintheregion.Aboutthreein10respondentssay
theylookuptheiraccountbyprovidingatelephonenumberoremail
addressatthepointofsale(29%)orusearetailer’smobileapp(28%).
Theuseofthird-partyappsandmobilewalletstostoreloyalty-program
informationisbelowtheglobalaverageinnearlyeverycountryinthe
region,withparticularlylowuseforbothmethodsinArgentina(10%
and8%,respectively).However,theuseofmobilewalletsexceedsthe
globalaverageinVenezuela(25%).
29Copyright © 2016 The Nielsen Company
SIGNIFICANT ROOM FOR LOYALTY PROGRAM GROWTH IN LATIN AMERICA
HOW DO YOU INDICATE THAT YOU’RE A LOYALTY-PROGRAM MEMBER?
Scan card in store
Look up account by providing phone number, email address or other personal information in store
Enter information or log into account on retailer website
Use retailer's mobile app
Enter and store loyalty program information in a third-party app that allows me to store multiple reward cards in one place
Enter and store loyalty program information into digital payment system
Chile Venezuela
Peru
Colombia
Brazil
Argentina
Mexico
Argentina Venezuela
Brazil
Colombia
Chile
Peru
Mexico
Peru Mexico
Venezuela Brazil
Chile
Colombia
Argentina
Venezuela Brazil
Colombia Mexico
Peru
Argentina
Chile
Venezuela Brazil Peru Chile
Mexico
Colombia
Argentina
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Mexico Brazil
Argentina
Colombia
Peru
Chile
Venezuela Global Average Global Average Global Average
Global Average Global Average Global Average
NEW
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ETH
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SO
LDER
MET
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Base:Allrespondentswhoaremembersofretailloyaltyprograms Source:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
34%
28%
29%
14%
42%
16%
REGIONAL AVERAGE
30 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
Whileuseofthird-partyappsandmobilewalletstoindicateloyalty-
programmembershipiscurrentlybelowtheglobalaverageintheregion,
thesetoolswilllikelybeveryimportantindrivingloyalty-programgrowthin
thefuture.Indeed,interestinthesefeaturesinLatinAmericaisamongthe
highestinthestudy.Technology-basedfeaturesareparticularlyappealing
inVenezuela,MexicoandBrazil.Eighty-fourpercentofVenezuelanloyalty-
programparticipantssaymobile-paymentintegrationissomewhator
veryappealing,and76%ofMexicanandBrazilianrespondentsand73%
ofColombianrespondentsrateitasappealing.Thesesamecountries
alsostandoutwithrespecttostore-specificmobileapps.Three-quarters
ofVenezuelan(75%)and69%ofMexicanandBrazilianloyalty-program
membersratetheseappsasappealing.Inaddition,sixin10Brazilian,
MexicanandVenezuelanrespondents(60%,59%and59%,respectively)
sayintegrationwiththird-partyappsthatconsolidateloyalty-program
informationisappealing.
31Copyright © 2016 The Nielsen Company
75%
86%
68%
80%
63%
73%
66%
54%
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
A COMBINATION OF LOYALTY-PROGRAM FEATURESIS APPEALING IN LATIN AMERICA
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
TECHNOLOGY
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR
LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
MEXICO 90%CHILE 87%VENEZUELA 87%BRAZIL 86%COLOMBIA 84%ARGENTINA 82%PERU 80%
BRAZIL 86%COLOMBIA 84%MEXICO 84%VENEZUELA 84%PERU 84%CHILE 82%ARGENTINA 81%
VENEZUELA 90%BRAZIL 86%COLOMBIA 86%MEXICO 85%PERU 81%CHILE 78%ARGENTINA 67%
BONUSES/STATUS
86%
85%
84%
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
VENEZUELA 84%MEXICO 76%BRAZIL 76%PERU 75%COLOMBIA 73%CHILE 69%ARGENTINA 62%
32 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
LatinAmericanretailersofferavarietyofrewards,fromearning
pointsthatcanberedeemedorusedasmoneytospecialpricesand
discountdaysforloyalty-programmembers.Some,especiallyhigh-end
retailers,arealsoofferingnon-monetaryincentivesinadditiontothe
typicalpointsprogram.Sowhichrewardsaremosthighlyvaluedby
consumers?
Asineveryotherregion,thefavoritesarerebatesorcashback(48%)
andproductdiscounts(47%).Rebatesorcashbackareparticularlywell
receivedinColombia(56%)andMexico(53%),butproductdiscounts
arelessprizedinMexico(40%)thanintheregionasawhole.Fourin10
loyalty-programparticipantsinLatinAmerica(40%)sayfreeproducts
areamongthetopthreebenefits,thehighestpercentageglobally,but
freeproductsarelesshighlyvaluedinVenezuela(27%)thanelsewhere
intheregion.Justoverone-thirdofLatinAmericanrespondents(34%)
sayfreeshippingisamongtheirthreemostvaluedbenefits,withthe
highestpercentagesinBrazil(39%)andChile(37%).
Afewnon-monetaryrewardsarevaluedmorehighlyinselectedmarkets
thanintheregionasawhole.Roughlythreein10loyalty-program
participantsinMexico(32%),Chile(29%),Venezuela(29%)andPeru
(28%)sayexclusiveaccesstosalesormerchandiseisamongthemost-
valuedbenefits.Inaddition,recognitionasavaluedcustomercangoa
longwayinVenezuela,where24%ofrespondentssayit’samongtheir
topthreebenefits,thesecond-highestpercentageglobally.Finally,14%
ofBrazilianrespondentssaycharitabledonationsareamongtheirmost-
valuedbenefits,doubletheglobalaverage(7%).
4 IN 10 LOYALTY-PROGRAM PARTICIPANTS IN LATIN AMERICA SAY FREE PRODUCTS ARE AMONG THEIR MOST VALUED BENEFITS, THE HIGHEST PERCENTAGE GLOBALLY.
33Copyright © 2016 The Nielsen Company
MONETARY REWARDS ARE HIGHLY VALUED IN LATIN AMERICA
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
PRODUCT DISCOUNTS
TOP COUNTRIES FOR SELECTED MONETARY
MOTIVATORS
PRODUCT DISCOUNTS
REBATES OR CASH BACK
FREQUENT FLYER POINTS
RECOGNITION AS A VALUED CUSTOMER
TOP COUNTRIES FOR SELECTED NON-
MONETARY MOTIVATORS48%
47%
40%
34%
21%
10%
9%
8%
7%
7%
REBATES OR CASH BACK
FREE PRODUCTS
FREE SHIPPING
FREQUENT FLYER POINTS
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
CHARITABLE DONATION
% DISCOUNTED SHIPPING
RECOGNITION AS A VALUED
CUSTOMER
HIGHER PRIORITY SERVICE
Base:AllrespondentswhoaremembersofretailloyaltyprogramsNote:RespondentscouldselecttopthreebenefitsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
ARGENTINA 51%BRAZIL 49%VENEZUELA 49%COLOMBIA 47%CHILE 47%PERU 44%MEXICO 40%
COLOMBIA 56%MEXICO 53%ARGENTINA 49%CHILE 48%PERU 47%BRAZIL 45%VENEZUELA 41%
FREE SHIPPING
BRAZIL 39%CHILE 37%VENEZUELA 31%MEXICO 30%ARGENTINA 28%PERU 28%COLOMBIA 26%
FREE PRODUCTS
ARGENTINA 46%BRAZIL 41%COLOMBIA 41%MEXICO 41%CHILE 39%PERU 35%VENEZUELA 27%
ARGENTINA 24%BRAZIL 24%PERU 20%CHILE 19%COLOMBIA 17%VENEZUELA 17%MEXICO 15%
CHARITABLE DONATION
BRAZIL 14%VENEZUELA 11%MEXICO 9%ARGENTINA 7%COLOMBIA 6%PERU 5%CHILE 4%
EXCLUSIVE ACCESS TO SALES OR MERCHANDISE
MEXICO 32%CHILE 29%VENEZUELA 29%PERU 28%COLOMBIA 26%ARGENTINA 21%BRAZIL 8%
VENEZUELA 24%PERU 15%COLOMBIA 11%ARGENTINA 10%CHILE 9%BRAZIL 7%MEXICO 7%
MONETARY NON-MONETARY
18%
34 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
NORTH AMERICA: AWASH IN LOYALTY PROGRAMSNorthAmericahashadloyaltyprogramsacrossretailfordecades,soit
shouldcomeasnosurprisethattheregionhasthehighestself-reported
ratesofprogramparticipationinthestudy.Morethaneightin10Canadian
andU.S.respondents(85%and84%,respectively)saytheybelongtoone
ormoreretailloyaltyprograms.
Aswe’veseeninothermaturemarkets,scanningacardinstoreisby
farthemostcommonwayshoppersindicatetheyareloyalty-program
members,thoughthismethodismorecommoninCanada(79%)than
theU.S.(62%).U.S.membersaremorelikelythantheirCanadian
counterpartstolookuptheiraccountbyprovidingtheirphonenumberor
emailaddressinstore(34%versus19%)orbyloggingintotheiraccount
online(34%versus26%).Inbothcountries,respondentsindicatelowuse
ofretailerorthird-partymobileappsandmobilewallets.
35Copyright © 2016 The Nielsen Company
OLDER METHODS DOMINATE IN NORTH AMERICA
HOW DO YOU INDICATE THAT YOU’RE A LOYALTY-PROGRAM MEMBER?
Scan card in store
Look up account by providing phone number, email address or other personal information in store
Enter information or log into account on retailer website
Use retailer's mobile app
Enter and store loyalty program information in a third-party app that allows me to store multiple reward cards in one place
Enter and store loyalty program information into digital payment system
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Canada
United States
United States
Canada
United States
Canada
United States
Canada
United States
Canada
United States
Canada
Global Average Global Average Global Average
Global Average Global Average Global AverageNEW
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ETH
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Base:Allrespondentswhoaremembersofretailloyaltyprograms Source:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
64%
23% 17% 13%
32% 33%
REGIONAL AVERAGE
36 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
MONETARY PERKS ARE STRONGLY PREFERRED IN NORTH AMERICA
PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS
REBATES OR CASH BACK
TOP COUNTRIES FOR SELECTED MONETARY
MOTIVATORS
PRODUCT DISCOUNTS
REBATES OR CASH BACK
FREQUENT FLYER POINTS
TOP COUNTRIES FOR SELECTED NON-
MONETARY MOTIVATORS
49%
46%
35%
35%
20%
16%
13%
9%
8%
5%
4%
PRODUCT DISCOUNTS
FREE PRODUCTS
FREE SHIPPING
FREQUENT FLYER POINTS
EXCLUSIVE ACCESS TO
SALES OR MERCHANDISE
DISCOUNTED SHIPPING
RECOGNITION AS A VALUED
CUSTOMER
HIGHER PRIORITY SERVICE
CHARITABLE DONATION
PERSONALIZED PRODUCTS
OR SERVICE EXPERIENCES
Base:AllrespondentswhoaremembersofretailloyaltyprogramsNote:RespondentscouldselecttopthreebenefitsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
FREE SHIPPING
FREE PRODUCTS
EXCLUSIVE ACCESS TO SALES OR MERCHANDISE
HIGHER PRIORITY SERVICE
RECOGNITION AS A VALUED CUSTOMER
CANADA 55%UNITED STATES 48%
CANADA 47%UNITED STATES 46%
CANADA 54%UNITED STATES 32%
UNITED STATES 37%CANADA 21%
CANADA 22%UNITED STATES 20%
UNITED STATES 16%CANADA 12%
UNITED STATES 9%CANADA 6%
UNITED STATES 9%CANADA 2%
MONETARY NON-MONETARY
%
37Copyright © 2016 The Nielsen Company
Rebatesorcashbackarethemost-valuedloyalty-programrewardin
bothCanadaandtheU.S.(55%and48%,respectively).Freeproducts
areaclosesecondinCanada(54%),whileproductdiscountstake
secondplaceintheU.S.(46%).U.S.membersalsovaluefreeshipping
morethantheirCanadiancounterparts(37%versus21%,respectively).
Flexiblerewardsandtheabilitytoreceivepointsacrosschannelsare
widelyappealinginboththeU.S.andCanada.Roughlyeightin10U.S.
andCanadianrespondentsidentifyeachofthesebenefitsassomewhat
orveryappealing:82%and78%,respectively,saysoabouttheability
tochooseamongseveraltypesofrewards,and81%and78%sayso
aboutpointsawardedforpurchasesregardlessofwheretheywere
made.Personalizeddiscountsorpromotionalofferingsbasedonpast
purchasingalsoareappealinginbothcountries(76%intheU.S.and
70%inCanada).
Mobilefeaturesandsocial-mediaintegrationhavenarrowerappealin
NorthAmerica.However,they’reratedmorefavorablyintheU.S.than
inCanada.Roughlyhalfofloyalty-programparticipantsintheU.S.and
fourin10inCanadasayastore-specificmobileapp(47%and38%,
respectively)orintegrationwithamobilepaymentsystem(49%and
39%,respectively)isappealing.Roughlyfourin10U.S.respondents
(38%)andthreein10Canadianrespondents(28%)sayintegration
withthird-partyappsthatconsolidateloyalty-programinformationis
appealing.Whilemobilefeaturesmayhavesomewhatlimitedappeal
currently,it’slikelythatthey’lldramaticallyshapetheloyaltyprogramsof
thefuture.
“Theretailloyaltyprogramsofthefuturewillbeprecise,personal,
andgearedtowhatconsumersreallywant,”saidRussellMackey,vice
president,RetailRelations,NielsenCatalinaSolutions.“Wethinkabout
loyaltyprogramsaspersonalizedbecausetheyappeartoberelevant
totheshopper,butmanyretailershaven’tevenscratchedthesurface
whenitcomestorealizingtheirfullpotential.Bigdata(inconjunction
withtechnology)andvariousrelationshipsandcollaborationsthatallow
retailerstoofferindividualizeddealsbasedonacustomer’sbuying
habitsandpurchasehistorywillenableloyaltyprogramsthatarehighly
tailoredtoindividualshoppers.”
38 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
Base:AllrespondentswhoaremembersofretailloyaltyprogramsSource:TheNielsenGlobalRetailLoyalty-SentimentSurvey,Q12016
NORTH AMERICAN LOYALTY-PROGRAM MEMBERS CRAVE FLEXIBILITY
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
81%
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
TOP COUNTRIES IN THE REGION WHERE THIS
ATTRIBUTE IS APPEALING
UNITED STATES 82%CANADA 78%
UNITED STATES 76%CANADA 70%
UNITED STATES 66%CANADA 60%
UNITED STATES 49%CANADA 39%
82%
81%
75%
53%
66%
56%
51%
48%
46%
46%
37%
FLEXIBILITY
PERSONALIZATION
TECHNOLOGY
THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS
POINTS OR REWARDS FOR PURCHASES MADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE
PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY
POINTS OR REWARDS FOR REFERRALS
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CUSTOMERS IN A PARTICULAR LEVEL OR STATUS
INTEGRATION WITH MOBILE PAYMENT SYSTEM
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION
BONUSES/STATUS
39Copyright © 2016 The Nielsen Company
STRATEGIES FOR SUCCESS: DATA IS AT THE HEART OF ANY WINNING LOYALTY PROGRAMTheultimategoalofanyloyaltyprogramistoprovideacompellingvalue
propositionthatkeepsconsumerscomingbacktimeaftertime.How
canretailerscreatevaluable,differentiatedloyaltyprograms?Strategies
shouldbedrivenbyadeepunderstandingofyourconsumers’shopping
decisionprocess,andthenprogramscandesignedtobringthemback
againandagain.
Measure and monitor performance.Loyaltyprogramscanbeusedto
drivebetterbusinessdecisions,aswellastorefineprogramoffers.But
todoboth,loyaltyprogramdatamustbetoolsforretailerlearning.
Researchcostspreventmanyretailersfromfullyassessingwhethertheir
programsmeettheobjectiveofincreasingconsumershareofwallet,but
theimportanceofdatacannotbeoverstatedandwillonlycontinueto
grow.Thefutureliesinintegration—combininggranular,internalloyalty
datawithrichcontextualmediaandmarketdatatomakemoreinsightful
decisions.
Use segmentation tools.Understandwhichconsumergroupsloyalty
programsreallymattertoandwhy.Theexecutionofanyloyalty
programshouldallowforpersonalizationanddynamiclearning,butthe
initialdesignshouldbegearedtowardservingtheconsumerswhose
behaviorwillbemostinfluenced,andasegmentationanalysiswillhelp
identifythoseconsumers.
Personalize the shopping experience.Winningloyaltyprograms
understandthateverycustomerisanindividualandthatsuccesscomes
fromgivingcustomerswhattheywant,notwhattheretailerwants.
Programoffersthatareuniquetotheshoppinghabitsofeachconsumer
cannotonlydrivebrandaffinity,buttheycanalsosendasignalto
thecustomerthattheyarevaluedpatrons.Infact,personalization
deepenstheshopper-retailerrelationship,enhancingengagementand
encouragingshopperstoreturnagainandagaintoredeem theiroffers.
40 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
Provide offers customers value. Retailersneedtousethebreadthofdataavailablethroughtheirloyaltyprogramsandpredictiveanalyticsto
identifythepromotionstowhichashopperismostlikelytorespondand
toestablishaone-to-onecommunicationschannel,providingshoppers
offerstheycaremostaboutinthechanneltheymostprefer.While
biggerfamiliesmaybeenticedbybuy-one-get-one-freedealsorstock-up
offerings,oldercustomersmaypreferspecialsavingsdayswhenstore
trafficislighter.
Differentiate your offering.Howisyourloyaltyprogramdifferentthan
yourcompetitors’?Giveshoppersacompellingreasontovisityourstore
ratherthananother.Considerexclusiverewardsandin-storeexperiences
thatareuniquetoyourlocationorbrandpositioningandmakeit
engagingandfuntoparticipateforallgenerationsofconsumers.
Leverage technology wisely.Advancementsintechnologyandthe
proliferationofmobiledevicesallowretailerstoprovidemorerelevant,
timelyoffersthaneverbefore,andmanyconsumersareenthusiastic
aboutintegratingtheirdigitaldeviceswithloyaltyprograms.Buta“build
itandtheywillcome”approachtodigitalintegrationisn’tthatsimple.
Retailersmustleveragedigitaltoolsthatcreatevalueforconsumers,
anddigitalinteractionsmustbealignedwithhowmuchorhowlittle
consumerswanttobecontacted.Consideranopt-inprogram,whereby
consumersindicatetheleveloffrequencytheywishtoreceivedigital
communications.
Consider non-monetary rewards.Financialincentivesareamust-have,
butnon-monetaryincentivesarethedifferentiatorofloyaltyprograms,
andcanbuildtherelationshipbetweenretailersandshoppers.Retailers
lookingforwaystoengageinmoredirectinteractionswithconsumers
couldtryrewardingmembersforreferralsorinteractingwiththebrand
onsocialmedia.Evenbetter,retailerscouldusetheirloyaltyprograms
forbrandbuilding,incentivizingactivitiesthatfitwiththeirbrandimage
orexpertise.Forexample,brandsthatwanttoestablishorcementa
reputationasaleaderinthehealth-and-wellnessspacecouldreward
consumersformeetingexerciseorhealthgoals,whilethosethatwant
tosolidifythemselvesassociallyresponsiblecouldconsiderrewarding
consumersforvolunteering,makingcharitabledonationsorchoosing
moreenvironmentallyfriendlyoptions.Aboveall,programsshouldbe
alignedwiththemoreimportantprioritiesandvaluesofconsumers.
41Copyright © 2016 The Nielsen Company
COUNTRIES IN THE GLOBAL SURVEY
MARKET INTERNET PENETRATION
Australia 93%
China 52%
HongKong 80%
India 37%
Indonesia 34%
Japan 91%
Malaysia 68%
NewZealand 94%
Philippines 53%
Singapore 81%
South Korea 92%
Taiwan 84%
Thailand 60%
Vietnam 52%
ASIA-PACIFIC
MARKET INTERNET PENETRATION
Egypt 37%
Morocco 61%
Pakistan 18%
SaudiArabia 65%
SouthAfrica 49%
UnitedArabEmirates
92%
AFRICA/MIDDLE EAST
MARKET INTERNET PENETRATION
Canada 93%
UnitedStates 87%
NORTH AMERICA
EUROPE
MARKET INTERNET PENETRATION
Austria 83%
Belarus 59%
Belgium 85%
Bulgaria 57%
Croatia 75%
CzechRepublic 80%
Denmark 96%
Estonia 84%
Finland 94%
France 84%
Germany 88%
Greece 63%
Hungary 76%
Ireland 83%
Israel 73%
Italy 62%
Kazakhstan 54%
Latvia 82%
Lithuania 82%
Netherlands 96%
Norway 96%
Poland 68%
Portugal 68%
Romania 56%
Russia 71%
Serbia 66%
Slovakia 83%
Slovenia 73%
Spain 77%
Sweden 95%
Switzerland 87%
Turkey 60%
UnitedKingdom 92%
Ukraine 43%
MARKET INTERNET PENETRATION
LATIN AMERICA
Argentina 79%
Brazil 68%
Chile 80%
Colombia 59%
Mexico 56%
Peru 59%
Venezuela 62%
Source:MiniwattsMarketing,Internet World Stats,June30,2016(EuropeisupdatedthroughNov.30,2015),www.internetworldstats.com
42 GLOBAL RETAIL LOYALTY SENTIMENT REPORT
ABOUT THE NIELSEN GLOBAL SURVEYTheNielsenGlobalLoyalty-SentimentSurveywasconductedMarch1-23,
2016,andpolledmorethan30,000onlineconsumersin63countries
throughoutAsia-Pacific,Europe,LatinAmerica,theMiddleEast/Africa
andNorthAmerica.Thesampleincludesinternetuserswhoagreed
toparticipateinthissurveyandhasquotasbasedonageandsexfor
eachcountry.Itisweightedtoberepresentativeofinternetconsumers
bycountry.Becausethesampleisbasedonthosewhoagreedto
participate,noestimatesoftheoreticalsamplingerrorcanbecalculated.
However,aprobabilitysampleofequivalentsizewouldhaveamargin
oferrorof±0.6%atthegloballevel.ThisNielsensurveyisbasedonly
onthebehaviorofrespondentswithonlineaccess.Internetpenetration
ratesvarybycountry.Nielsenusesaminimumreportingstandard
of60%internetpenetrationoranonlinepopulationof10millionfor
surveyinclusion.
ABOUT NIELSENNielsenHoldingsplc(NYSE:NLSN)isaglobalperformancemanagement
companythatprovidesacomprehensiveunderstandingofwhatconsumers
watchandbuy.Nielsen’sWatchsegmentprovidesmediaandadvertising
clientswithTotalAudiencemeasurementservicesforalldevicesonwhich
content—video,audioandtext—isconsumed.TheBuysegmentoffers
consumerpackagedgoodsmanufacturersandretailerstheindustry’sonly
globalviewofretailperformancemeasurement.Byintegratinginformation
fromitsWatchandBuysegmentsandotherdatasources,Nielsenalso
providesitsclientswithanalyticsthathelpimproveperformance.Nielsen,
anS&P500company,hasoperationsinover100countries,coveringmore
than90%oftheworld’spopulation.
Formoreinformation,visitwww.nielsen.com.
Copyright©2016TheNielsenCompany.Allrightsreserved.Nielsenand
theNielsenlogoaretrademarksorregisteredtrademarksofCZT/ACN
Trademarks,L.L.C.Otherproductandservicenamesaretrademarksor
registeredtrademarksoftheirrespectivecompanies.16/10549