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THE
PROGRAM
CARD-CARRYING CONSUMER
PERSPECTIVES ON RETAIL LOYALT Y-
PROGRAM PARTICIPATION AND PERKS
NOVEMBER 2016
FAITHFUL
FOLLOWERS OR
FAIR-WEATHER
FANS?
AROUND THE WORLD
Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More
than seven in 10 global respondents (72%) agree that, all other factors equal, theyll buy from a
retailer with a loyalty program over one without.
More than half of global loyalty-program participants (51%) say product discounts are among
their three most-valued loyalty-program benefits, followed by monetary rewards in the form of
rebates or cash back (45%). Generic deals, however, create little differentiation; retailers must
focus on connecting with consumer needs and delivering greater value.
Monetary rewards are important everywhere, but non-monetary rewards resonate more strongly
in some African/Middle Eastern countries than globally. Examples include recognition as
a valued customer in Morocco, Egypt and Pakistan and charitable donations in Egypt and
Morocco.
Digital tools and features are particularly appealing in Asia-Pacific, where the highest
percentage of loyalty-program participants in the worldwide study rate as appealing store-
specific loyalty mobile apps (69%), integration with digital payment systems (78%) and
integration with third-party apps that consolidate loyalty-program information (63%).
MILLENNIALS BOOMERS
PERSONALIZED CHARITABLE
PRODUCTS OR SERVICE DONATION
EXPERIENCES
12% 10%
3% 3%
PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
REWARDS
TECHNOLOGY
PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING
MILLENNIALS BOOMERS
FLEXIBILITY
PERSONALIZATION
REWARDS
TECHNOLOGY
76%
INTEGRATION WITH MOBILE PAYMENT SYSTEM 48%
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES 72%
ON SOCIAL NETWORKS 40%
LOYALT Y
L ANDSCAPE
AROUND THE
WORLD
Retail loyalty programs are well established in Southeast Asia, the Pacific
and China, dating back to the mid- to late 1990s; in India, they were
introduced in the late 2000s. Given their long history, its no surprise that
online respondents in the region are avid loyalty-program members. More
than seven in 10 consumers with online access in India and Southeast Asia
VIETNAM , NEW
say they participate in one or more retail loyalty programs (74% and 72%, ZEAL AND AND
AUSTRALIA HAVE
respectively). Vietnam, New Zealand and Australia have the highest self-
reported rates of loyalty-program participation in the region (84%, 84%
and 83%, respectively), followed closely by Japan (80%), Korea (77%) and
Malaysia (77%). Participation is lower in Greater China (61%), but Chinese THE HIGHEST SELF-
retailers are now focusing more on loyalty programs for several reasons.
REPORTED RATES
First, e-commerce is growing fast, and off-line retailers are under intense
pressure to protect their share. In addition, slowing economic growth OFLOYALT Y-
PROGRAM
is hurting fast-moving consumer goods (FMCG) retailers. Finally, more
Chinese consumers are paying greater attention to the quality of products
and the overall shopping experience.
PARTICIPATION
How do loyalty-program participants indicate theyre a member of the IN ASIA-PACIFIC.
program? It varies by market. Presenting a membership card to be scanned
in store is the most common method in several of the most mature loyalty
markets, including New Zealand (85%), Australia (81%) and Japan (62%).
Digital methods are more commonly used in Asia. Looking up the account
by providing an associated phone number or email address in store is most
common in Taiwan (60%), Vietnam (60%) and India (52%), while logging
into a retailer website is the most common method in China (51%) and
Indonesia (47%). In a few markets, mobile has emerged as the channel of
choice. Using a retailers mobile app is the most commonly cited method
in Thailand (49%) and Korea (40%, tied with scanning the card in store).
China (47%) and India (45%) also exceed the global average when it
comes to the use of a retailers mobile app, as well as third-party apps that
consolidate program information (39% and 36%, respectively) and mobile
payment systems (38% and 38%, respectively).
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
New Zealand Taiwan Vietnam
OLDER METHODS
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
NEWER METHODS
In fact, mobile features are so highly desirable that more than two-thirds
of loyalty-program members in Asia-Pacific (69%) somewhat or strongly
agree theyre more likely to participate in a loyalty program if a mobile
app is available, compared with 56% globally.
69%
OF LOYALT Y-PROGRAM MEMBERS
AGREE THAT THEYRE MORE LIKELY TO
PARTICIPATE IN A LOYALT Y PROGRAM IF
A MOBILE APP IS AVAIL ABLE.
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 83% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
CHINA 89%
THE ABILITY TO CHOOSE AMONG 81% PHILIPPINES 86%
SEVERAL TYPES OF REWARDS INDIA 84%
SINGAPORE 83%
THAIL AND 83%
VIETNAM 83%
PERSONALIZATION
TECHNOLOGY
MONETARY NON-MONETARY
REBATES OR
CASH BACK
44% PRODUCT FREQUENT
DISCOUNTS FLYER POINTS
HIGHER
EXCLUSIVE ACCESS
PRIORITY 16% FREE
TO SALES OR
SERVICE SHIPPING
MERCHANDISE
EXCLUSIVE
ACCESS TO JAPAN 51% JAPAN 26%
SALES OR
15% INDONESIA 45% SOUTH KOREA 24%
VIETNAM 37% TAIWAN 23%
MERCHANDISE INDIA 36% THAIL AND 18%
SOUTH KOREA 36% SINGAPORE 16%
RECOGNITION
AS A VALUED 13%
CUSTOMER FREE RECOGNITION
PRODUCTS AS A VALUED
PERSONALIZED CUSTOMER
PRODUCTS 13%
OR SERVICE PHILIPPINES 45% NEW ZEAL AND 20%
EXPERIENCES INDONESIA 43% INDIA 18%
NEW ZEAL AND 41% PHILIPPINES 18%
CHARITABLE 8% MAL AYSIA 40% VIETNAM 16%
THAIL AND 37% AUSTRALIA 13%
DONATION SINGAPORE 13%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Finland Israel
Ireland Turkey
Lithuania Portugal
United Kingdom Norway
Austria Serbia
Czech Republic Switzerland
Italy Romania
Croatia Bulgaria
Latvia Spain
Belgium Greece
Netherlands Croatia
Germany Russia
Hungary Slovenia
Sweden Austria
Slovenia Ukraine
Denmark Belarus
Estonia Kazakhstan
Switzerland Poland
Slovakia Netherlands
Norway Sweden
Portugal United Kingdom
Belarus Denmark
Greece Italy
Romania Slovakia
Ukraine Germany
Russia Czech Republic
Serbia Finland
France France
Poland Belgium
Bulgaria Ireland
Kazakhstan Hungary
Turkey Lithuania
Spain Latvia
Israel Estonia
Global Average Global Average
69% 18%
Enter information or
log into account on
29% 39% Enter and store loyalty 7% 23%
program information
retailer website into digital payment system
MONETARY NON-MONETARY
REBATES OR
CASH BACK
46% PRODUCT FREQUENT
DISCOUNTS FLYER POINTS
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 75% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
CROATIA 83%
THE ABILITY TO CHOOSE AMONG 74% TURKEY 83%
SEVERAL TYPES OF REWARDS SERBIA 83%
GREECE 81%
HUNGARY 80%
ROMANIA 80%
PERSONALIZATION BEL ARUS 80%
KAZAKHSTAN 80%
The use of a retailers mobile app is more common in Pakistan (33%) than
the other countries in the region (25% on average). Fewer than one-fifth
of Africa/Middle Eastern loyalty-program participants have entered their
program information in a mobile wallet (19%) or third-party app (16%),
Technology adoption rates and the age of the loyalty program possibly
play a role in the way in which retailers engage with shoppers, said
Henry. The newer the program, the less likely it is to be card based.
REGIONAL AVERAGE
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
South Africa Morocco Egypt
United
Arab Emirates Saudi Arabia Pakistan
Pakistan United Saudi Arabia
Arab Emirates
Saudi Arabia Pakistan United Arab Emirates
Egypt Egypt South Africa
Morocco South Africa Morocco
Global Average 53% Global Average Global Average
46% 31% 33%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
26%
OF LOYALT Y-PROGRAM PARTICIPANTS IN MOROCCO
SAY RECOGNITION AS A VALUED CUSTOMER IS
AMONG THEIR THREE MOST VALUED REWARDS, THE
HIGHEST PERCENTAGE GLOBALLY.
MONETARY NON-MONETARY
PRODUCT
DISCOUNTS
41% REBATES OR RECOGNITION
AS A VALUED
CASH BACK
CUSTOMER
MOROCCO 26%
FREE SOUTH AFRICA 69%
PRODUCTS
38% UNITED ARAB EMIRATES 45%
EGYPT 21%
PAKISTAN 20%
SAUDI ARABIA 38%
SAUDI ARABIA 14%
EGYPT 35%
SOUTH AFRICA 14%
MOROCCO 29%
UNITED ARAB EMIRATES 13%
FREE SHIPPING 27% PAKISTAN 19%
PRODUCT FREQUENT
RECOGNITION DISCOUNTS FLYER POINTS
AS A VALUED 18%
CUSTOMER SOUTH AFRICA 67% UNITED ARAB EMIRATES 28%
PAKISTAN 45% SAUDI ARABIA 16%
UNITED ARAB EMIRATES 42% MOROCCO 16%
FREQUENT
FLYER POINTS 14% SAUDI ARABIA
EGYPT 23%
38% EGYPT 13%
PAKISTAN 13%
MOROCCO 18% SOUTH AFRICA 9%
CHARITABLE
DONATION 13% FREE CHARITABLE
PRODUCTS DONATION
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 73% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
SOUTH AFRICA 84%
THE ABILITY TO CHOOSE AMONG SEVERAL 73% UNITED ARAB EMIRATES 72%
TYPES OF REWARDS EGYPT 72%
PAKISTAN 70%
SAUDI ARABIA 68%
PERSONALIZATION MOROCCO 58%
The main retailers in every country have a loyalty program, but there
is room for significant growth in the region, said Giovanna Marquez,
Retail Analytics leader, Nielsen Latin America. More and more retailers
are building loyalty programs, and some are integrating payment
systems into their loyalty programs with their own credit cards, giving
members the ability to earn additional points and receive special offers
when they use the retailers card.
REGIONAL AVERAGE
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%
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 86% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
MEXICO 90%
THE ABILITY TO CHOOSE AMONG 86% CHILE 87%
SEVERAL TYPES OF REWARDS VENEZUEL A 87%
BRAZIL 86%
COLOMBIA 84%
ARGENTINA 82%
PERSONALIZATION PERU 80%
As in every other region, the favorites are rebates or cash back (48%)
4 IN 10
and product discounts (47%). Rebates or cash back are particularly well
received in Colombia (56%) and Mexico (53%), but product discounts
are less prized in Mexico (40%) than in the region as a whole. Four in 10
loyalty-program participants in Latin America (40%) say free products LOYALT Y-PROGRAM
are among the top three benefits, the highest percentage globally, but
free products are less highly valued in Venezuela (27%) than elsewhere
PARTICIPANTS IN
in the region. Just over one-third of Latin American respondents (34%) L ATIN AMERICA SAY
say free shipping is among their three most valued benefits, with the
highest percentages in Brazil (39%) and Chile (37%). FREE PRODUCTS ARE
AMONG THEIR MOST
A few non-monetary rewards are valued more highly in selected markets
than in the region as a whole. Roughly three in 10 loyalty-program VALUED BENEFITS, THE
participants in Mexico (32%), Chile (29%), Venezuela (29%) and Peru
HIGHEST PERCENTAGE
(28%) say exclusive access to sales or merchandise is among the most-
valued benefits. In addition, recognition as a valued customer can go a GLOBALLY.
long way in Venezuela, where 24% of respondents say its among their
top three benefits, the second-highest percentage globally. Finally, 14%
of Brazilian respondents say charitable donations are among their most-
valued benefits, double the global average (7%).
MONETARY NON-MONETARY
REBATES OR FREQUENT
CASH BACK FLYER POINTS
PRODUCT
DISCOUNTS
47%
ARGENTINA 24%
COLOMBIA 56%
BRAZIL 24%
MEXICO 53%
PERU 20%
FREE ARGENTINA 49%
PRODUCTS
40% CHILE 48%
CHILE 19%
COLOMBIA 17%
PERU 47%
VENEZUEL A 17%
BRAZIL 45%
MEXICO 15%
VENEZUEL A 41%
FREE SHIPPING 34% EXCLUSIVE ACCESS
PRODUCT TO SALES OR
DISCOUNTS MERCHANDISE
FREQUENT
FLYER POINTS 21% ARGENTINA 51%
MEXICO 32%
CHILE 29%
BRAZIL 49%
VENEZUEL A 29%
VENEZUEL A 49%
EXCLUSIVE COLOMBIA 47%
PERU 28%
COLOMBIA 26%
ACCESS TO
SALES OR
18% CHILE 47%
PERU 44%
ARGENTINA 21%
BRAZIL 8%
MEXICO 40%
MERCHANDISE
FREE CHARITABLE
CHARITABLE
10% PRODUCTS DONATION
DONATION
ARGENTINA 46% BRAZIL 14%
RECOGNITION BRAZIL 41%
AS A VALUED 9% COLOMBIA 41%
VENEZUEL A 11%
MEXICO 9%
CUSTOMER MEXICO 41% ARGENTINA 7%
CHILE 39% COLOMBIA 6%
PERU 35% PERU 5%
DISCOUNTED VENEZUEL A 27%
% 8% CHILE 4%
SHIPPING
FREE RECOGNITION
HIGHER SHIPPING AS A VALUED
PRIORITY 7% CUSTOMER
SERVICE BRAZIL 39% VENEZUEL A 24%
CHILE 37% PERU 15%
PERSONALIZED VENEZUEL A 31% COLOMBIA 11%
PRODUCTS 7% MEXICO 30% ARGENTINA 10%
ARGENTINA 28% CHILE 9%
OR SERVICE
PERU 28% BRAZIL 7%
EXPERIENCES COLOMBIA 26% MEXICO 7%
REGIONAL AVERAGE
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%
MONETARY NON-MONETARY
REBATES OR
CASH BACK 49%
TOP COUNTRIES FOR TOP COUNTRIES FOR
SELECTED MONETARY SELECTED NON-
PRODUCT
DISCOUNTS
46% MOTIVATORS MONETARY MOTIVATORS
SALES OR
MERCHANDISE
FREE RECOGNITION
% DISCOUNTED 13% PRODUCTS AS A VALUED
SHIPPING CUSTOMER
PERSONALIZED
PRODUCTS
OR SERVICE
4%
EXPERIENCES
Flexible rewards and the ability to receive points across channels are
widely appealing in both the U.S. and Canada. Roughly eight in 10 U.S.
and Canadian respondents identify each of these benefits as somewhat
or very appealing: 82% and 78%, respectively, say so about the ability
to choose among several types of rewards, and 81% and 78% say so
about points awarded for purchases regardless of where they were
made. Personalized discounts or promotional offerings based on past
purchasing also are appealing in both countries (76% in the U.S. and
70% in Canada).
PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING
FLEXIBILITY
PERSONALIZATION
BONUSES/STATUS
TECHNOLOGY
Thailand 60% Kazakhstan 54% Source: Miniwatts Marketing, Internet World Stats,
Latvia 82% June 30, 2016 (Europe is updated through Nov. 30,
Vietnam 52% 2015), www.internetworldstats.com
Lithuania 82%
Netherlands 96%
L ATIN AMERICA
Norway 96%
INTERNET
MARKET Poland 68%
PENETRATION
Portugal 68%
Argentina 79% Romania 56%
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