3 in 4 shoppers demand loyalty rewards from retailers
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They want more personalised reward programmes, not just the traditional point-based ones. Amidst Singapore’s retail doldrums, more than 75% of Singapore consumers indicate that the will buy more from retailers if they are better rewarded for their loyalty.
According to a study by ICLP, this is despite the fact that many consumers are currently lukewarm about their relationships with brands and retailers, giving average to low scores in terms of passion, commitment, and intimacy.
The study noted that only 3% of consumers considered themselves to be devoted to their preferred brands.
The research suggested that in order for retailers to take their relationships with customers to the next level, they have to go beyond just giving traditional-points based reward programmes.
“Much like in a relationship with friends and loved ones, they would engage more when they receive genuine gestures that surprise and delight them,” the study explains.
ICLP country manager Bruno Tay said many Singaporean consumers still relate to brands and retailers at a transactional level, so when times are uncertain, they easily resort to the myriad of choices that are at their disposal.
“It’s not too late to turn things around, though. In fact, retailers now have a chance to truly stand out if they appeal to the heart too – by approaching communication, reliability, consistency, reward and recognition from a human perspective,” he noted.
Questions & Answers
Q.What percentage of consumers in Singapore feel devoted to their preferred brands?
What percentage of consumers in Singapore feel devoted to their preferred brands?
Only 3% of consumers in Singapore considered themselves to be devoted to their preferred brands. This indicates a general lack of strong emotional connection with retailers and brands currently.
Q.How do retailers need to adapt their reward programmes to better engage customers?
How do retailers need to adapt their reward programmes to better engage customers?
Retailers need to move beyond traditional point-based reward programmes and offer more personalised options. The study suggests genuine gestures that surprise and delight customers, similar to personal relationships.
Q.What is ICLP’s country manager, Bruno Tay, referring to when he mentions consumers relating to brands at a 'transactional level'?
What is ICLP’s country manager, Bruno Tay, referring to when he mentions consumers relating to brands at a 'transactional level'?
He means consumers currently view brand relationships primarily through buying and selling, without much emotional connection. This makes them prone to switching brands when market conditions are uncertain and choices are plentiful.
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