Loyalty Customer Program is an effective way to create a competitive advantage

Loyalty Customer Program is an effective way to create a competitive advantage

The incentive program for loyalty customers of retails is an effective approach to creat competitive advantages. This method can reduce the ability of customers switching to the other retail systems.
According to Loyalty Psychology survey about ratailers of Nielsen, 74% Vietnamese people participating loyalty program agreed that with all the same factors they will choose a store having a loyalty program to buy.
More than two thirds (73%) of them agreed that they shop more often, spend more at retailers having loyalty program.

The report said Vietnam and New Zealand had the highest percentage of customer participating one or more loylaty programs with 84%.

Mr. Roberto Butragueno, Deputy Director of Service Division for Retailers of Nielsen Vietnam said “There are many customers who love loyalty programs, so effective programs will help enterprise increase market share of retailers”.

He also noted that loyalty programs can not be designed for all objects in generall. Because buyers have big difference in hobbies and habits, retailers need to identify buyers that they want to attract to design right program.

Most Asian-Pacific respondents say that they participate loyalty programs because of fianancial benefits: The product discount program is the most profitable, then consider discount criteria, cash back, free shipping or priority services.

About 60% Asian-Pacific users say that mobile apps of loyalty programs are particularly attractive. The rate in Vietnam is 66% and highest rate is in India (80%). Most Vietnamesr people participate in a loyalty program if it have mobile app.

“In digital area, mobile payment platforms will increasingly provide an opportunity for a loyalty program and create a way for members and retailers to engage one another along the path to purchase”, said Roberto.

The Retail Loyalty Sentiment Survey polled more than 30,000 online respondents in 63 countries. The surveys examined self-reported participation rates, the rewards or benefits valued most, and the features that are most appealing in loyalty programs of the future.