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Tag: Collinson Group

  • The study, commissioned by ICLP's parent company Collinson Group, examined affluent consumers' attitudes towards brand loyalty

    ICLP survey reveals main loyalty drivers in retail amongst affluent consumers

    By A Correspondent

     

    Global loyalty marketing agency ICLP reveals that the desire for innovative loyalty programmes is high on the agenda for consumers when considering their preferred retailers. This is particularly true of Millennials, with 46 per cent saying they would be encouraged to spend with a brand that has a loyalty programme. This compares with 39 per cent of those in Generation X, and 40 per cent of Baby Boomers, demonstrating that while there is plenty of appetite for loyalty programmes, brands must do more in order to continue to engage audiences. The study, commissioned by ICLP’s parent company Collinson Group, examined affluent consumers’ attitudes towards brand loyalty.

     

    Anurag Saxena, General Manager at ICLP said: “Retail continues to evolve at a rapid rate, with brands both online and offline battling for loyalty in an increasingly crowded space. Gone are the days when a loyalty card alone would encourage consumers to choose a particular retailer above all others – the stakes are much higher now. Effective loyalty programmes need to recognise and cater to what customers value, such as being greeted by name when entering a store, personalised offers or VIP events, in order to drive brand engagement and devotion.”

     

    The survey found that while consumer interest in loyalty programmes is high, as 42 per cent of shoppers stated they would be encouraged to shop more with a brand if it had a loyalty programme, retailers need to look beyond traditional points-based programmes to find ways to inspire higher or more frequent spend from shoppers.

     

    • 58 per cent of affluent consumers expect offers that are personalised and relevant to them when they walk into a store, showing that many expect retailers to use data insights to create a more valuable, customer-centric relationship

    • 53 per cent of all shoppers would be encouraged to shop more frequently or spend more with a brand if they received discounts on future purchases

    • 42 per cent of Indian shoppers said that they would be more loyal to brands that offer a stylist to advise them on purchases, and 39% claim suggestions based on past purchases drive their loyalty

    • 42 per cent of consumers are likely to spend more in a retail store where they are greeted by name and made to feel like a valued customer

    • Companies that are able to send receipts via email get more repeat visits from consumers, as this is something 39 per cent of those questioned stated would lead them to shop more frequently with a retailer

    • Increasingly, consumers will choose retailers that offer money-can’t-buy experiences (16 per cent) or invitations to special VIP events (21 per cent) over those that offer generic, points-based rewards. This shows the need for loyalty programmes that offer unique and exclusive experiences.

     

  • With the spending power of Millennials and Generation Z set to rise, brands need to prepare digital loyalty initiatives now or risk losing patronage from these digital native

    Majority of affluent middle class customers rely on banking and finance apps

    By A Correspondent

     

    Meeting expectations of the affluent middle class customers in India, in terms of digital experiences, is a very important ingredient of engagement for Financial Service brands to stay competitive, research released by Collison Group has revealed. It found that 93 percent of affluent middle class customers use banking and finance apps – up from 85 percent in 2014. It also revealed that 53 percent of customers prefer to do their banking online or via mobile app, while 27 percent prefer to go into a branch and 20 percent prefer telephone banking.

     

    Collinson Group polled 6,125 of the top 10-15 percent of earners from Australia, Brazil, China, France, Hong Kong, India, Singapore, the United Kingdom, the United States of America and the United Arab Emirates.

     

    Collinson Group recommends that financial services brands must act now to upgrade their loyalty infrastructure as the spending power of Millennials and Generation Z is set to soar in the next five years. Millennials are pushing companies to innovate faster and are defining new customer expectations. Born in the age of instant communication, smart technology, and a hyper-connected world, these young consumers are influencing digital transformation.

     

    “Digital will be the biggest battleground in financial services as digitally native Millennials and Generation Z become more lucrative target audiences for the sector. We can expect to see digital engagement continue to soar over the next three to five years. Brands need to act now in order to improve their digital offering, or risk missing the opportunity to build loyal relationships with lucrative audience segments,” said Anurag Saxena, India country manager, ICLP, owned by Collinson Group.

     

    The financial services opportunity

    “The way people shop and the way they interact with loyalty programmes has changed. Millennials and Generation Z for example, typically engaging across five screens simultaneously. Their relationship with brands is also completely different to other audience groups – they want instant gratification and claim not to want to save up loyalty points over a longer period to access a reward.”

     

    “But the traditional financial services firms actually have a clear opportunity to deliver highly engaging, digitally driven loyalty initiatives due to the wealth of data they collect. They need to go further in terms of using this data to improve targeting and segmentation to appeal to distinct audience groups. Banks really need to develop their own loyalty identities,” said Anurag Saxena, India country manager, ICLP, owned by Collinson Group.

     

    Recent research from the firm found that loyalty programme membership in the financial services sector had declined by 44 percent globally in the past two years. This decline was driven by brands not providing rewards programmes that customers value, and not engaging customers in their preferred channels. This research also found that brands getting it right are reaping the benefits –globally, banking loyalty programmes were found to encourage 82 percent of members to spend more, while credit card initiatives positively influenced 79 percent.

     

    “Digital loyalty initiatives can be far more cost effective than more traditional methods. By levering data and delivering highly personalised loyalty rewards at the appropriate time, brands can form emotional connections with customers and create additional sales opportunities across their organisation. Embracing digital tools will allow brands to communicate and engage their customers in more meaningful ways, and digital applications can be used to drive bank wide loyalty. Doing this will help create active digital footprints and take the next step beyond loyalty to fully fledged brand advocacy,” Saxena concluded.

     

  • Spending on grandchildren, children and partners is the main indulgence for Indian consumers when investing their money

    Collinson Group unveils interesting report on the affluent middle class

    By A Correspondent

     

    Economic growth and urbanisation are rapidly expanding the affluent middle class in India.  New global research from Collinson Group reveals distinct motivations and attitudes amongst this group which go beyond traditional demographic and geographical boundaries. Today’s affluent consumers place a higher priority on family, altruism and enriching experiences, ahead of luxury products and short-term satisfaction.

     

    Spending on grandchildren, children and partners is the main indulgence for Indian consumers when investing their money. Giving back to charity and the community, and protecting the environment also rate higher than buying leading brands and driving a luxury car. Affluent Indian consumers also expect banks to behave ethically much more than other nations (79 vs 68 per cent globally).

     

    Christopher Evans

    Christopher Evans, Director at Collinson Group says: “The quality of experience is increasingly the new currency for today’s affluent middle classes. Where previously the affluent middle class was more motivated by luxurious trappings, they now place a higher priority on family and life experiences such as travel, as well as experiences offered by the products and brands they choose. This is an important distinction for businesses trying to attract this growing and influential group. 

     

    Collinson Group commissioned research with 4,400 consumers within the top 10-15% of global income in Brazil, China, India, Italy, Singapore, the United Arab Emirates, the United Kingdom and the United States. The global research identifies four “tribes”, or groups of people, who share some common traits which cut across age, gender and international boundaries.

     

    Mid-Life Modernists are the most prominent tribe in India and are characterised by their enthusiasm for technology. Prudent Planners are motivated primarily by family and trying to help others.  The Stylish Spenders do still yearn for the finer things in life.  Finally, there are the Experientialists who put money-can’t buy experiences at the top of their priorities.