News
42% shoppers enrolled in India vs 74% in US
Feb 1, 2012
Only 42 per cent of Indian shoppers belong to a rewards or loyalty programme, compared to 74 per cent Americans, says the 2011 Cross Cultural Loyalty Study by COLLOQUY.
The study on consumer attitudes and behaviour towards loyalty programmes in six countries, presented by loyalty service provider LoyaltyOne, however notes that compared to Americans (39 per cent), more Indians were trusting of companies with their personal information - 56 per cent Indians believed ‘most businesses can be trusted'.
LOYALTY BY SEC
On average, each enrolled person in India was part of 2.8 such programmes, with a marked difference among those from different socio-economic classifications: those in SEC A averaged three programmes, those in SEC C were enrolled in 1.8 and those in SEC B were part of 3.7 programmes each.
According to a paper, on the basis of the study, the higher number of programmes each SEC B customer is enrolled in (than SEC A) is explained by their spending enough by shopping in organised retail, and their likelihood of seeking more value than SEC A customers.
Across SEC segments, 83 per cent of those not enrolled in loyalty programmes were open to joining one.
Among SEC A and B, 25 per cent of those enrolled said loyalty programmes were ‘extremely influential' in their purchase decisions. Against this, a mere 9 per cent in SEC C claimed to be influenced by loyalty programmes.
One in five Indian shoppers said they were ‘extremely loyal' to their favourite brands in six categories. Fifty-six per cent said they trusted foreign brands more than Indian, and agreed that ‘foreign competition is good'.
Colloquy notes in the paper that companies should consider partnerships with non-competitive businesses to tailor programmes, leading to faster rewards in multiple categories. It also advocates a segmented loyalty programme with no entry barriers for the lower rungs of shoppers.
INDIANS, 26 TO 34, WANT MORE
Segmented by age, the consumer group between 26 and 34 years was found to be the most demanding.
While 40 per cent of them said they expected special service, 29 per cent claimed they would pay a premium for ‘brand name luxury', and 28 per cent claimed to be early adopters of fashion and products. While 18 per cent of those aged 35 to 44 years said they would pay a premium for brands, the number dropped to 14 per cent for those aged 18 to 15 and those over 45 years. The 26-to-35-year segment also expected more recognition and rewards than other age groups to join a loyalty programme.
