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

2. Released globally on January 30th 2014
available at www.aimia.com

3. WHAT DID WE LOOK AT?
Loyalty
as a
Concept
Data
Concerns
Technology
& Channel
Use
Loyalty
Program
Motivators
3

4. 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

5. SHARING THE ANSWERS
Characteristics
of Indian Urban
Consumers
What Makes
Them Unique
Using these
Learnings in
Marketing &
Loyalty
Strategy
5

6. 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.

7. 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.

8. 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.

9. 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.

10. INDIAN MILLENNIALS ARE MORE WILLING TO ENGAGE
Proprietary and confidential. © 2013 Aimia. All rights reserved.

11. 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

12. 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

13. 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.

14. THERE IS A CLEAR GAP IN THE INDIAN MARKET TODAY
14

15. 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.

16. INDIANS ARE INTERESTED IN MORE THAN JUST CASH
REWARDS
Proprietary and confidential. © 2013 Aimia. All rights reserved.

17. 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

18. 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.

19. BEFORE YOU FOCUS ON DRIVING LOYALTY,
IT’S IMPORTANT TO GET THE BASICS RIGHT
RAY KROC
McDonalds Chairman
19

20. 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

22. WE HAVE EXCELLENT EXPERIENCE IN REAL RELATIONSHIPS

23. THANK YOU
AKASH SAHAI
Managing Director, Aimia India
akash.sahai@aimia.com