Press release from Business Wire India
Source: LoyaltyOne
Thursday, November 03, 2011 06:20 PM IST (12:50 PM GMT)
Editors: General: Consumer interest; Business: Business services, Information technology; Technology
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Loyalty Marketing Takes Precedence in India's Burgeoning Consumer Market
Study shows more than 40% of Indians eager to join loyalty programs
Mumbai, Maharashtra, India and Toronto, Canada, Thursday, November 03, 2011 -- (Business Wire India) -- India's continued economic growth has fueled an emerging opportunity for brands and retailers to engage consumers, according to the new 2011 COLLOQUY Cross-Cultural Loyalty Study. This research was carried out in collaboration with Epsilon International, the world's leading multichannel marketing services firm and LoyaltyOne, a global provider of loyalty marketing services that recently entered the Indian consumer market.
Among the key findings for India is the importance of word-of-mouth (WOM) as compared to other countries surveyed. WOM conversations are rated at 7-8 on a 10 point scale, where 10 signifies that WOM conversations are "extremely important", approximately, 15 - 25% higher than developed countries. This is of great significance for brands looking to create early adopters and loyal ambassadors. India also offers a significant socially accessible and connected consumer audience with a hundred million internet users more than half of whom (55%) read product reviews online and only make a purchase based on the feedback, according to the Asian Digital Marketing Association (ADMA) report 2011.
"The results of the study validate that there's never been a better time for brands in India to engage in meaningful relationships with their customers", said Rathin Lahiri, Chief Marketing Officer, LoyaltyOne India. "First generation loyalty programs create a means to get to know customers better. With that knowledge brands can successfully adapt and build the type of lasting relationships that drive sustained growth."
Other study highlights:
-- Consumers in India have an engaged, energized, and enthusiastic attitude about their economic prospects, consumerism, brands and companies, and loyalty rewards programs. Over a third (34%) of Indians feel strongly that their economic prospects will improve over the next decade.
-- While a sizeable 42% of Indians belong to at least one reward program, it is significantly lower than their American counterparts, 74% of whom are enrolled in such programs.
-- 20 to 33 percent of Indian consumers are "extremely loyal" to their favorite brands across six major categories - clothing retailers, grocery retailers, financial services providers, dining, auto fuel and travel providers
-- 56% of Indians believe that most businesses can be trusted. This is significantly higher than all other countries surveyed.
-- A high number of Indians (56%) also seem to have inherent trust towards international brands over domestic brands.
-- Email and text messages rank #1 and #2 respectively as the preferred means of receiving marketing messages among India's middle class consumers, beating television and print advertising.
"The opportunity for marketers in India is clear. The challenge, however, is to convert the Indian consumer's growing love affair for the brand into a longer term, sustainable and profitable relationship," said Adrian Hoon, Vice President of Sales, Asia Pacific for Epsilon. "As the role of word of mouth grows in an increasingly social environment, the gap between satisfaction and dissatisfaction has never been more pronounced. Brands that invest in understanding customers' engagement dynamics and engaging their hearts and minds will win big, in terms of perceived service and loyalty."
LoyaltyOne President Bryan Pearson will provide additional research-based insights into the best ways for marketers to communicate with increasingly sophisticated Indian consumers when he serves as a featured presenter at the World Brand Congress in Mumbai Nov. 25. Pearson's presentation is titled, "From the Mouth of India's Consumers: New Research into Attitudes about Loyalty."
About the Study:
The 2011 COLLOQUY Cross-Cultural Loyalty Study sponsored by LoyaltyOne and Epsilon International was fielded in July 2011. It aims to identify underlying differences in cultural approaches to commercial loyalty in six markets- three emerging economies (India, China and Brazil) and three developed economies (United States, Canada and Australia). The scope of the research spreads across consumer attitudes, preferences, and behaviors related to loyalty program participation and involvement. The comparison is made among the socio-economic classes A, B and C in the emerging economies, and other demographic segments in the developed countries. Interviews were conducted among approximately 500 consumers each in India, China, Brazil and Australia and about 1200 consumers in Canada and the U.S.
Complete details of 2011 COLLOQUY Cross-Cultural Loyalty Study are available as a free download at http://www.colloquy.com/crosscultural
About COLLOQUY:
COLLOQUY comprises a collection of publishing, education and research resources devoted to the global loyalty-marketing industry. Owned by LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since 1990 with over 40,000 global subscribers to its magazine and www.colloquy.com the most comprehensive loyalty web site in the world. COLLOQUY develops research studies and white papers including industry-specific reports, sizing studies and insights into the drivers of consumer behavior. COLLOQUY also provides educational services through workshops, webinars and speeches at events throughout the world and is a loyalty-marketing partner of both the Direct Marketing Association and the Canadian Marketing Association and a content provider to the American Marketing Association. COLLOQUY also operates the COLLOQUY Network, a global consortium of practitioners certified in COLLOQUY's proprietary methodology. COLLOQUY magazine subscriptions are available at no cost to qualified persons at www.colloquy.com or by calling 513.248.9184.
About Epsilon International:
Epsilon International is the industry's leading marketing services company, with a broad array of data-driven, multi-channel marketing solutions that leverage consumer insight to help brands deepen their relationships with customers. Epsilon works with many of the most-recognised brands in the world. Services include strategic consulting, acquisition and customer database technologies, email marketing and analytic services, predictive modelling, loyalty management, and direct and digital agency services.
With local offices in the Australia, China, Hong Kong, Singapore, U.K., France and Germany, Epsilon International is an operating unit of Epsilon. Founded in 1969, Epsilon is headquartered in Dallas, USA and comprises three major business services groups: Marketing Technology, Purple@Epsilon, and Epsilon Targeting data services. Epsilon is the world's largest permission-based email marketing provider. In addition, Epsilon has been named an email service provider leader in renowned independent research reports since 2002. Epsilon is an Alliance Data Company (NYSE: ADS). For more information about Epsilon's marketing solutions in Asia Pacific, visit www.epsilon.com/apac or email to apac-info@epsilon.com.
About LoyaltyOne:
LoyaltyOne, an Alliance Data (NYSE:ADS) company, is a global provider of loyalty strategy and programs, customer analytics and relationship marketing services. In India LoyaltyOne has partnered with Direxions - an independent ISO-certified marketing solutions company, to bring a compelling suite of loyalty services for marketers. As global leaders in coalition loyalty programs, including operating North America's largest coalition loyalty program - the AIR MILES Reward Program, as well as dotz - the leading coalition program in Brazil, LoyaltyOne leads all efforts relating to coalition programs in India with standalone loyalty program consulting, analytics and program management provided by Direxions.
CONTACT DETAILS
Ameya Sirur, Bite Communications, +91 9899931853, Ameya.Sirur@bitecommunications.com
KEYWORDS
CONSUMER, BUSINESS SERVICES, IT, TECHNOLOGY
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