Photo: Duc Anh
Vietnamese consumers favor retailers with loyalty programs, latest Nielsen survey finds.
Loyalty programs are crucial to attract customers, more than seven in ten Vietnamese (74 per cent) somewhat or strongly agree, and all other factors being equal they will buy from a retailer with a loyalty program over one without, the latest survey conducted by market researchers Nielsen reveals.
The Nielsen Global Retail Loyalty-Sentiment Survey polled more than 30,000 online respondents in 63 countries to understand what drives consumers to participate in retail loyalty programs.
More than six in ten of Vietnamese loyalty program participants (61 per cent) agree that loyalty programs make them more likely to continue doing business with the company and more than two-thirds (73 per cent) agree that they shop more frequently and spend more at retailers with loyalty programs.
In Asia-Pacific, the survey found, Vietnam and New Zealand have the highest sell-report rate of loyalty-program participants, with 84 per cent saying they belong to one or more loyalty programs.
Mobile shopping apps are also quite attractive in Vietnam (66 per cent) and particularly attractive in India (80 per cent), Thailand (78 per cent) and China (74 per cent), the report showed.
“It’s true that many shoppers appear to love loyalty programs,” said Mr. Roberto Butragueño, Associate Director, Retail Services at Nielsen Vietnam. “Effective loyalty programs are intended to ultimately increase a retailer’s share of the consumer’s wallet.”
“But there is often a large gap between the number of programs in which shoppers are enrolled and the number in which they actively participate. Loyalty programs cannot be designed in a one-size-fits-all manner.”
According to the survey, financial incentives are the primary reason for participating in loyalty programs. Nearly half of Asia-Pacific respondents who participate in loyalty programs (49 per cent) somewhat or strongly agree that they join these programs for product discounts.
More than four in ten Asia-Pacific respondents say they join because of rebates or cash back offers. The rate is even higher in Vietnam, at around five in ten.
Fewer Vietnamese participants say free shipping, frequent flyer points, and higher priority services are among the most-valued benefits, with 37 per cent, 26 per cent and 21 per cent, respectively.
There are big differences in loyalty program preferences and habits across consumer groups. These differences include how consumers want to engage with their loyalty program, what tangible benefits they are seeking from loyalty programs, and even how much they care about loyalty programs.
Retailers, therefore “need to determine who they want to bring into the store or onto the website more, and design a loyalty program for them,” Mr. Butragueño said.