RAI – AIMIA: India Millennial Loyalty Survey

997 views

Published on

Comprehensive, quantitative view of evolving loyalty expectations of the urban Indian ‘Millennial’ and how Retail should respond.

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
997
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
58
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

RAI – AIMIA: India Millennial Loyalty Survey

  1. 1. Released globally on January 30th 2014 available at www.aimia.com
  2. 2. WHAT DID WE LOOK AT? Loyalty as a Concept Data Concerns Technology & Channel Use Loyalty Program Motivators 3
  3. 3. AN INTRODUCTION TO AIMIA Standalone Loyalty Services >20 Global Leader in Loyalty Management 22 1250 worldwide MARKETS COUNTRIES PROGRAMS ACROSS ACROSS Customer Analytics 4000 >30 worldwide Coalition OFFICES Loyalty vertical industries geographies EMPLOYEES channels 280M vertical industries geographies HOUSEHOLDS channels Aimia helps companies build deeper, more engaged and more profitable relationships with their customers
  4. 4. SHARING THE ANSWERS Characteristics of Indian Urban Consumers What Makes Them Unique Using these Learnings in Marketing & Loyalty Strategy 5
  5. 5. TODAY’S CONSUMER Connected 60% 85% 45% of urban internet users of smartphone and of online consumers surf for entertainment, social network users access the internet networking, business, are below thetheir only through age education and of 35 mobile devices shopping Though mostly used The young Mobile Internet now for search, fun, dominate usage is here social networking… (e-commerce is still nascent) Proprietary and confidential. © 2013 Aimia. All rights reserved.
  6. 6. TODAY’S CONSUMER Increasingly multi-channel 40% 5X up to 8% of India’s urban internet “Digitally Influenced” users report that their purchases represent 5X of India’s retail market online activities the e-Commerce expected to grow influence what be market. And will they online by 2016! buy, whether online or fivefold by 2020 offline Source: Euromonitor The We are at internet actually and is expected has a high impact to skyrocket! the tip on overall retail of the Iceberg (even as e-commerce begins to take off…) Source: BCG Source: BCG Proprietary and confidential. © 2013 Aimia. All rights reserved.
  7. 7. TODAY’S CONSUMER Social and vocal Using Social (on mobile) Recommended brands Q. For which of the following activities do you currently use your mobile device? Social Networking Seeking Opinions Before purchase Proprietary and confidential. © 2013 Aimia. All rights reserved.
  8. 8. TODAY’S CONSUMER Willing to share but private 72% said it was important for them know what data was being collected on them Proprietary and confidential. © 2013 Aimia. All rights reserved.
  9. 9. INDIAN MILLENNIALS ARE MORE WILLING TO ENGAGE Proprietary and confidential. © 2013 Aimia. All rights reserved.
  10. 10. CUSTOMERS ARE LOOKING FOR GENUINE DIALOGUE MUTUAL TRUST “I won’t be happy if someone misuses my personal information. But if it is well used for a good purpose then I would be happy.” FEMALE, SINGLE, 21 YRS, PUNE RECIPROCITY THE BASICS COMMITMENT “Referring family members or relatives (to a) company has to give some rewards.” “ They must take time to truly listen to what their customers say.” MALE, 30, Married HYDERABAD MALE, 28. Married AHMEDABAD “The goodwill of a company can earn loyalty and to earn (it) you need to work on good customer service, good quality products and honesty.” MALE, 33, SINGLE DELHI Proprietary and confidential. © 2013 Aimia. All rights reserved. 11
  11. 11. AND RETAILERS ARE TRYING TO RESPOND WHAT THEY NEED, WHEN THEY NEED IT “Shopping isn’t a linear process any more, and even 50 year olds are increasingly behaving like youngsters. You must help the consumer find the information they want when they are looking for it.” CEO, electronics retailer WHO’S LOYALTY? IMPATIENCE OF THE YOUNG “Youngsters want fast food not fine dining. We must adapt to this culture.” Head Marketing, department store “Your maid buys the groceries, usually where cheapest. Your driver fills the petrol in your car. Your kid tells you what to buy. Who’s loyalty are you going after?” CEO, grocery company Proprietary and confidential. © 2013 Aimia. All rights reserved. 12
  12. 12. WHAT MAKES OUR CUSTOMERS UNIQUE? Loyalty will be built on the mobile New generations with new behaviours Life is at their fingertips Loyalty can change their behaviour Smartphone usage now crosses generations More willing to engage with brands Proprietary and confidential. © 2013 Aimia. All rights reserved.
  13. 13. THERE IS A CLEAR GAP IN THE INDIAN MARKET TODAY 14
  14. 14. MILLENNIALS WANT REWARDS FASTER THAN THEY RECEIVE THEM TODAY Q. How long does it take to earn a reward today in India? APPAREL RETAIL Poor track record of most programs today • • • • Earn ~100 points annually Min 2 years Often expire by then Member usually do not redeem AIRLINE • • • • Earn <1000 points Redeem in 3-5 years Often expire by then Average member doesn’t redeem HOTEL CHAIN • Top members get free night, rest get voucher • Often expire in 3-4 years • >50% members cannot redeem FUEL RETAIL • Earn ~2500 points • Takes 14 months to get a coffee worth of value • Almost no redemption value Proprietary and confidential. © 2013 Aimia. All rights reserved.
  15. 15. INDIANS ARE INTERESTED IN MORE THAN JUST CASH REWARDS Proprietary and confidential. © 2013 Aimia. All rights reserved.
  16. 16. THOSE WHO ENGAGE IN LOYALTY PROGRAMS ARE MORE LIKELY TO BE LOYAL 73% Say they will revisit a brand after earning a reward 78% Say they will feel or be more loyal to the brand after earning a reward Proprietary and confidential. © 2013 Aimia. All rights reserved. 17
  17. 17. INDIAN CONSUMERS ARE HAPPY TO ADVOCATE BRANDS, FOR THE RIGHT REASONS 72% Say they will tell friends about positive rewards experiences 64% Say they will promote a brand and its products in social media in exchange for rewards Proprietary and confidential. © 2013 Aimia. All rights reserved.
  18. 18. BEFORE YOU FOCUS ON DRIVING LOYALTY, IT’S IMPORTANT TO GET THE BASICS RIGHT RAY KROC McDonalds Chairman 19
  19. 19. LEARNING FROM OUR CUSTOMERS TO HELP US WIN MAKE REWARDS ATTAINABLE KEEP IT SIMPLE OPTIMIZE FOR MOBILE BE SENSITIVE TO PRIVACY REWARD INTERACTIONS Proprietary and confidential. © 2013 Aimia. All rights reserved. 20
  20. 20. WE HAVE EXCELLENT EXPERIENCE IN REAL RELATIONSHIPS
  21. 21. THANK YOU AKASH SAHAI Managing Director, Aimia India akash.sahai@aimia.com

×