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Tag: ICLP survey

  • Online and multi-brand retailers still have plenty to learn from each other, despite building strong customer loyalty

    ICLP survey reveals encouraging findings on retail shopping

    By A Correspondent

    Global loyalty marketing agency ICLP reveals research showing where different retail sectors are performing most strongly in building loyalty with their customers. While online retailers including Amazon and Flipkart were shown to be performing best in customer recognition and personalisation, multi-brand retailers including Big Bazaar and Shoppers Stop were shown to have built strong trust with Indian shoppers. They were also effective at encouraging their customers to make recommendations to friends and family.

    For example, when it came to personalisation and customer recognition, 70 per cent of Amazon and 67per cent of Flipkart customers said that they were provided with relevant recommendations for products and services that were of interest to them. Furthermore, 63 per cent of Amazon and 58 per cent of Flipkart shoppers said that their chosen retailer had taken the time to really get to know them and understand what they want.

    Meanwhile, multi-brand retailers have built strong relationships based on trust with their shoppers. 60per cent of Big Bazaar customers and 88 per cent of Shoppers Stop customers said that the products offered by these retailers were of consistent quality and value for money.

    The results show the extent to which different retail sectors in India can learn from one another as they look to build loyalty and closer relationships with their customers. Working with Prof Rogge of the University of Rochester, ICLP, a Collinson group company, applied Sternberg’s Triangular Theory of Love to the relationship between shoppers and brands, and defined the ideal, or ‘devoted’ relationship, as one where shoppers feel passion, intimacy, and commitment towards the brand.

    As part of the research, ICLP asked shoppers questions to ascertain how they felt about the relationships they had with particular brands and their associated loyalty programs. The results demonstrated the areas where all brands could improve, despite their success in building strong relationships so far:

    - Retailers still have room for improvement: Indian shoppers do feel attached to the brands they shop from most often, but when looking at all retail brands, only 21% are currently in a devoted relationship

    - Programmes could do more to reward personal recommendations: Just 44% of Indian shoppers say that they are rewarded if they make a personal recommendation to one of their friends

    - Personal data should be used to full effect: Only 56per cent of Indian shoppers said that their chosen brand made relevant recommendations for products and services that interest them based on their personal data

    - Rewards need to be more tailored: Fewer than half of Indian shoppers (47%) said that they were rewarded with offers tailored to their individual needs

    Commented Anurag Saxena, Country Head and GM at ICLP: “Indian retailers are generally doing a good job when it comes to building strong and lasting relationships with their customers. However, in order to ensure that as many customers as possible are in a truly devoted relationship, different retail sectors can learn from one another.

    “Multi-brand retailers should look at how ecommerce brands have leveraged customer data points and segmented them on the basis of likes, preferences, shared interests on social media and their involvement in groups and communities. Meanwhile; ecommerce players need to understand that as gratifying as it is to receive a discount, a memorable experience with the brand is far more valuable. Giving customers unique experiences as rewards strengthens the emotional bond customers have with the brand, ensuring the relationship continues long after the experience itself.”

     

  • 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.