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COUNTLESS TIMES OF SEEKING: LOYALTY PROGRAMS THAT LIGHTS UP CONSUMERS’ LIFE OPINIONS FROM CONSUMERS WITH MEMBERSHIP CARDS ON INVOLVING IN RETAILER LOYALTY PROGRAMS & THE BENEFITS

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Page 1: COUNTLESS TIMES OF SEEKING: LOYALTY PROGRAMS THAT LIGHTS ... · provided loyalty benefits similar to those of traditional in-store retailers. And increasingly, loyalty programs are

1 COUNTLESS TIMES OF SEEKING

COUNTLESS TIMES OF SEEKING:LOYALTY PROGRAMS THAT LIGHTS UP CONSUMERS’ LIFEOPINIONS FROM CONSUMERS WITH MEMBERSHIP CARDS ON INVOLVING IN RETAILER LOYALTY PROGRAMS & THE BENEFITS

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2 COUNTLESS TIMES OF SEEKING

FAITHFUL FOLLOWERS OR FAIR-WEATHER FANS?When it comes to shopping, choice is the operative word. Whether

consumers shop at a specialty retailer or a mass merchandiser,

on a computer or a mobile device, they have never had so many

ways to please the palate, discover the deal or pay the piper.

Differentiating your brand in such a crowded space is not only

critical, but also more difficult than ever.

A retail loyalty program can be an effective way to create

competitive advantage by reducing customers’ likelihood to switch

stores. Indeed, more than seven in 10 loyalty-program participants

in Nielsen’s Global Loyalty-Sentiment Survey (72%) somewhat or

strongly agree that, all other factors equal, they will buy from a

retailer with a loyalty program over one without. Loyalty programs

can also help drive more frequent visits and heavier purchasing.

Nearly three-quarters of global loyalty-program participants (74%)

agree that loyalty programs make them more likely to continue

doing business with a company, and two-thirds (67%) agree that

they shop more frequently and spend more at retailers with loyalty

programs.

Brick-and-mortar retailers are not the only ones benefiting from

loyalty-program participation. Two-thirds of global respondents

(66%) agree they’d shop more at online retailers if these sellers

provided loyalty benefits similar to those of traditional in-store

retailers. And increasingly, loyalty programs are at the leading

edge of technology as retailers incorporate advanced analytics,

mobile experiences and other digital solutions into their

programs.

And many shoppers appear to love loyalty programs. In fact, 66%

of global respondents say they belong to one or more programs.

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. So what distinguishes the winners from the

rest of the pack? While many tried-and-true retail loyalty-program

fundamentals can be applied anywhere in the world, there also are

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3Copyright © 2016 The Nielsen Company

unique differences by country. For example, mobile loyalty apps

are particularly appealing in India and China, while non-monetary

retail loyalty reward programs are important in Morocco. Knowing

what program attributes resonate best with your customers will

equip you to drive engagement.

“Loyalty programs are intended to ultimately increase a retailer’s

share of the consumer’s wallet,” said Louise Keely, executive vice

president, Nielsen Global Retail Practice. “But loyalty programs

cannot be designed in a one-size-fits-all manner. There are big

differences in loyalty program preferences and habits across

countries, and across consumer groups within countries. These

differences include how consumers want to use technology 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 need to determine who they want

to bring into the store or onto the website more, and design a

loyalty program for them.”

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. We

examined self-reported participation rates, the rewards or benefits

valued most, and the features that are most appealing in the

loyalty programs of the future. Finally, we provide insight into the

ways to build and maintain a winning loyalty program.

WIDESPREAD LOYALTY PROGRAMS IN TAIWANThe Nielsen Global Retail Loyalty-Sentiment Survey, 60% of

respondents in Taiwan are in loyalty programs. Among those,

80% are in one or more loyalty programs. Additionally, 60% of

respondents joining loyalty programs in Taiwan claim their loyalty

membership in-store by giving a telephone number or other

personal information, while more 53% do so simply by scanning

their membership card.

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4 COUNTLESS TIMES OF SEEKING

Source: Nielsen Global Survey-Q1-2016

60% OF RESPONDENTS ARE LOYALTY PROGRAM MEMBERS, AND AROUND 80% OF THEM BELONG TO MORE THAN 1 PROGRAM

18 13

8

22 23

6 10

18 14

22 14

10 14

19 16

56

42

36

41 43

53 51 53 62 45

47 46 44

57

44

8

6

4

9 3 16 10 5

7

2 6

3 5

6

7

2

1

1

2 5 6

1 1

2 1

2

1

17 39 51 27 31 21 23 22 16 30 31 40 37 16 32

AU CN HK IN ID JP KO MY NZ PH SG TW TH VN AP

ONE 2 TO 5 6 TO 10 11+ NONE

HOW MANY RETAIL LOYALTY PROGRAMS DO YOU BELONG TO?

%

Source: Nielsen Global Survey-Q1-2016

MOST RESPONDENTS EASILY INDICATE THEIR MEMBERSHIP BY PROVIDING PERSONAL INFORMATION

60

53

39

27

17

13

3

LOOK UP ACCOUNT BY PROVIDING PHONE NUMBER, EMAIL ADDRESSOR OTHER PERSONAL INFORMATION IN STORE

SCAN CARD IN STORE

ENTER INFORMATION OR LOG INTO ACCOUNT ON RETAILER WEBSITE

USE RETAILER'S MOBILE APP

ENTER AND STORE LOYALTY PROGRAM INFORMATION IN A THIRD-PARTYAPP (SUCH AS KEYRING, CARDSTAR) THAT ALLOWS ME TO STORE

MULTIPLE REWARD CARDS IN ONE PLACE

ENTER AND STORE LOYALTY PROGRAM INFORMATION INTO DIGITALPAYMENT SYSTEM SUCH AS APPLEPAY/PASSBOOK OR GOOGLE WALLET

OTHER

HOW DO YOU INDICATE YOU ARE A RETAIL LOYALTY MEMBER?

%

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5Copyright © 2016 The Nielsen Company

INDICATE YOUR LEVEL OF AGREEMENT WITH THE FOLLOWING STATEMENTS?

20

18

16

11

14

15

13

12

16

11

9

8

57

58

54

56

53

50

50

49

43

43

35

27

20

21

26

28

29

27

29

32

36

40

38

36

2

3

3

5

3

7

7

6

4

4

15

23

1

1

1

2

3

5

ALL OTHER FACTORS EQUAL, I WILL BUY FROM A RETAILER WITHA LOYALTY PROGRAM OVER ONE WITHOUT

I READ RETAILER PROMOTIONAL FLYERS/LEAFLETSAT THE RETAILER I SHOP MOST BEFORE I GO SHOPPING

LOYALTY PROGRAMS MAKE ME MORE LIKELY TO CONTINUEDOING BUSINESS WITH A COMPANY

I SHOP MORE FREQUENTLY AND SPEND MORE AT RETAILERSWITH LOYALTY PROGRAMS

I WOULD SHOP MORE AT ONLINE RETAILERS (E-RETAILERS) IF THEY PROVIDEDSIMILAR LOYALTY BENEFITS AS TRADITIONAL IN-STORE RETAILERS

I ONLY JOIN LOYALTY PROGRAMS TO GET FREE PRODUCTS OR DISCOUNTS

I AM COMFORTABLE WITH RETAILERS COLLECTING INFORMATIONABOUT MY SHOPPING HABITS IN EXCHANGE FOR DISCOUNTS

I READ RETAILER PROMOTIONAL FLYERS/LEAFLETS AT THE RETAILERSTHAT I DON'T SHOP IN

LOYALTY PROGRAMS ARE AN IMPORTANT PART OFMY RELATIONSHIP WITH A COMPANY

I AM MORE LIKELY TO PARTICIPATE IN A LOYALTY PROGRAM IF THERE IS AMOBILE APPLICATION AVAILABLE

FEE-BASED LOYALTY PROGRAMS (SUCH AS AMAZON PRIME)OFFER BETTER REWARDS THAN FREE ONES

I'M WILLING TO PAY A LITTLE MORE FOR A PRODUCT FROM A RETAILER WITH ALOYALTY PROGRAM THAN FROM A RETAILER WITHOUT ONE

STRONGLY AGREE SOMEWHAT AGREE NEITHER AGREE NOR DISAGREE SOMEWHAT DISAGREE STRONGLY DISAGREE

Source: Nielsen Global Survey-Q1-2016

THE MAJORITY OF RESPONDENTS SAID THEY’RE MORE WILLING TO SHOP AT A RETAILER WITH A LOYALTY PROGRAM

%

Moreover, 70% of respondents suggest that loyalty programs are

drivers for them to continue to shop in those specific retailers,

while two-thirds (67%) state they prefer to shop at a retailer that

has a loyalty program. Still further, respondents say that if loyalty

programs provided by online shops resemble those of traditional

retailers, they would prefer to shop online more often. “This

shows that promoting loyalty programs allows retailers to stand

out among fierce competition,” Terri Kang suggested, Director,

Retailer and eCommerce Vertical, Nielsen Taiwan.

In Taiwan, a good loyalty programs allow consumers to take

advantage of a number of useful benefits. 82% of respondents

said a good program includes “points or rewards for purchases

regardless of whether they were made in store, on a website or

a mobile device” or “personalized discounts or promotional

offerings based on past purchases”. “Ability to choose among

several types of rewards” (80%) and “opportunities to earn

bonuses through a specified activity (79%)” are also popular

loyalty benefits Taiwan consumers prefer.

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6 COUNTLESS TIMES OF SEEKING

But what are the rewards or benefits that consumers in Taiwan

value the most? The answer is instant and direct feedback. Nearly

three-fourths (73%), 28% greater compared to the global average,

of respondents with memberships suggest that rebates or cash

back are most important, followed by product discounts (55%) and

free products (35%).

“Taiwan consumers want their loyalty programs to be simple and

comprehensive. Retailers have an opportunity to enhance the

attractiveness of loyalty programs by strengthening integration

and convenience through reward accumulation across stores.

Consumers want to take in loyalty programs that they know will

offer them real benefits, like cash back at the register or providing

tangible rewards. By offering customers more personalized and

f lexible options through their memberships, retailers have an

excellent opportunity to improve their members’ satisfaction, and

ultimately the retailer’s bottom line,” says Kang.

Source: Nielsen Global Survey-Q1-2016

RESPONDENTS FOCUS ON COMPREHENSIVENESS IN ACQUIRING RELEVANT REWARDS WHEN EVALUATING A LOYALTY PROGRAM

HOW APPEALING ARE EACH OF THE FOLLOWING RETAILER LOYALTY FEATURES TO YOU?

55 27

23

19

25

15

16

16

12

16

13

10

59

61

54

48

45

43

46

40

41

33

17

18

19

19

28

34

33

30

40

38

45

1

1

1

6

4

7

9

3

6

10

1

3

1

1

3

1

2

2

POINTS/REWARDS FOR PURCHASES REGARDLESS OF WHETHER THEY WEREMADE IN STORE, ON A WEBSITE OR ON A MOBILE DEVICE

PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGSBASED ON PAST PURCHASING

FLEXIBLE REWARDS OR THE ABILITY TO CHOOSEAMONG SEVERAL TYPES OF REWARDS

OPPORTUNITIES TO EARN BONUSES BY DOING SOME SPECIFIED ACTIVITY

POINTS/REWARDS FOR SHARING PRODUCTS AND PAGES ON SOCIAL NETWORKS

INTEGRATION WITH MOBILE PAYMENT SYSTEM SO I CAN AUTOMATICALLY EARNAND USE POINTS/REWARDS WHEN I USE A MOBILE WALLET

POINTS/REWARDS FOR REFERRALS

TIERED PROGRAMS WITH EXCLUSIVE REWARDS ONLY AVAILABLE TOCUSTOMERS IN A PARTICULAR LEVEL/STATUS

PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS

STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP

INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE LOYALTY PROGRAM INFORMATION SUCH AS KEYRING OR CARDSTAR

VERY APPEALING SOMEWHAT APPEALING NEUTRAL SOMEWHAT UNAPPEALING VERY UNAPPEALING

COMPREHEN-SIVENESS

RELEVANT

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7Copyright © 2016 The Nielsen Company

Source: Nielsen Global Survey-Q1-2016

MOBILE APPLICATIONS ARE USED LESS IN TAIWAN THAN ASIA PACIFIC , BUT PRESENT A FUTURE OPPORTUNIT Y FOR RETAILERS

HOW DO YOU INDICATE YOU ARE A RETAIL LOYALTY MEMBER?

32

32

42

13

17

27

ENTER AND STORE LOYALTY PROGRAM INFORMATIONINTO DIGITAL PAYMENT SYSTEM SUCH AS

APPLEPAY/PASSBOOK OR GOOGLE WALLET

ENTER AND STORE LOYALTY PROGRAM INFORMATIONIN A THIRD-PARTY APP (SUCH AS KEYRING, CARDSTAR) THAT

ALLOWS ME TO STORE MULTIPLE REWARD CARDS IN ONE PLACE

USE RETAILER'S MOBILE APP

TW AP AVERAGE

HOW APPEALING ARE EACH OF THE FOLLOWING RETAILER LOYALTY FEATURES TO YOU.

FEATURE RANKING (MOST APPEALING LEAST) TW AP AVERAGE

STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 10th 8th

Kang further suggested there is an opportunity for leveraging

mobile devices in loyalty programs. “Compared to the Asia-

Pacific region, retailers in Taiwan have yet to drive mobile

application usage in connection with their loyalty programs.

This is another area where we see white-space for retailers

to innovate and further strengthen their engagement with

consumers. We already know mobile is an incredibly effective

way to get in front of your target customer, so the we see mobile

applications as a key tool where Taiwanese retailers can further

expand their efforts and reach.”

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8 COUNTLESS TIMES OF SEEKING

MONEY MAKES THE LOYALTY PROGRAM GO ROUNDIt should come as no surprise that for the majority of respondents,

financial incentives are the primary reason for participating in

loyalty programs. Two-thirds of global respondents who participate

in loyalty programs (67%) somewhat or strongly agree that they

join these programs only to get free products or discounts.

When it comes to the most-valued loyalty-program benefits,

monetary incentives top the list in every region, by a wide margin.

More than half of global loyalty-program participants (51%) say

product discounts are among the three most valued benefits,

and discounts are particularly popular in Europe (62%). Fewer

global program participants (45%) say rebates or cash back are

among the most-valued benefits, but cash back is slightly more

popular than discounts in North America (49% versus 46%) and

Latin America (48% versus 47%). However, creating meaningful

differentiation requires offering more than generic deals.

“While tangible discounts are a usage driver for loyalty programs,

share-driving programs go far beyond these benefits,” said Keely.

“Tailoring loyalty benefits for specific consumers, and using the

loyalty program engagement vehicles—be it via an app, email, or

in-store interaction—all allow retailers to personalize the loyalty

program so that it’s not just a discount vehicle. Providing advice,

tailored offerings, and other services will delight the loyalty-

program member. In this way, there is no one loyalty program—

each shopper will have his or her own version of the program,

tailored to his or specific needs.”

Financial rewards are the most highly-valued loyalty-program

benefits for members of all ages, but product discounts and

cash back or rebates are rated higher by older respondents

than by their younger counterparts. Younger loyalty-program

participants value a few non-monetary benefits more highly than

their older counterparts, though the percentages who say these

are among the top three benefits are rather low. Fifteen percent of

Millennials say higher-priority service, such as first-class seating

or VIP customer service is one of their top three loyalty-program

benefits, more than double the percentage of Baby Boomers and

Silent Generation respondents (6% of each group) who say so.

In addition, 12% of Millennials say their most-valued benefits

include personalized products or service experiences, and 10%

say the same of charitable donations. These response rates are

more than three times higher than for Baby Boomers (3% for each

type of benefits) and Silent Generation respondents (4% and 3%,

respectively).

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9Copyright © 2016 The Nielsen Company

FLEXIBILITY IS THE FUTURE OF RETAIL LOYALTYWhen it comes to the loyalty-program features members are

looking for, f lexibility is very important. More than eight in 10

global loyalty-program participants (81%) say it’s somewhat or

very appealing to be able to earn rewards regardless of whether a

purchase was made in store, on a website or on a mobile device.

Slightly smaller shares (79%) cite the ability to choose among

several types of rewards. More than three-quarters of global

loyalty-program members rate two other benefits as appealing:

personalized promotions based on past purchasing (77%) and

the opportunity to earn bonuses by doing some specified activity

(76%).

“An omnichannel experience is the new reality for consumers,”

said Keely. “Retailers can’t think of the online browsing and in-

store buying experience as disparate activities. Loyalty programs

and the engagement with members should engage holistically

across brick-and-mortar and digital channels across the entire

path to purchase, not just at check out.”

As adoption of nontraditional payment methods rises, loyalty

programs also should be f lexible in terms of payment type. Two-

thirds of global loyalty-program participants (67%) say integration

with a mobile payment system is somewhat or very appealing,

so they can automatically earn and use rewards when they use a

mobile wallet. Mobile-wallet integration is even more appealing in

Asia-Pacific (78%) and Latin America (75%) than globally.

“Mobile payments platforms will increasingly provide an

opportunity for loyalty-program engagement with consumers,

providing a convenient and personalized way for program

members and retailers to engage with one another all along the

path to purchase,” said Keely.

Flexible rewards, integration across channels, and personalized

promotional offers are highly appealing to respondents of all ages.

However, not surprisingly, younger loyalty-program members are

more likely than their older counterparts to recognize the appeal

of these features—particularly those regarding mobile or social-

media integration.

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10 COUNTLESS TIMES OF SEEKING

ASIA-PACIFIC: AN APPETITE FOR APPSIn the more-developed markets of Asia-Pacific, smaller-format

stores (convenience stores and mini-markets) are the primary

retail growth engines, as urban shoppers increasingly seek

convenient options compatible with their on-the-go lifestyles.

Meanwhile, large-format stores are increasingly reliant on

promotions to maintain sales growth, creating a vicious cycle

that can often result in a decline in sales over time. To break the

cycle and to find growth in a tough retail environment, retailers

looking to find a competitive advantage are using well-designed

loyalty programs that provide relevant offers that drive customer

engagement and incremental revenue opportunities.

Retail loyalty programs are well established in Southeast Asia, the

Pacific and China, dating back to the mid- to late 1990s; in India,

they were introduced in the late 2000s. Given their long history,

it’s no surprise that online respondents in the region are avid

loyalty-program members. More than seven in 10 consumers with

online access in India and Southeast Asia say they participate in

one or more retail loyalty programs (74% and 72%, respectively).

Vietnam, New Zealand and Australia have the highest self-reported

rates of loyalty-program participation in the region (84%, 84%

and 83%, respectively), followed closely by Japan (80%), Korea

(77%) and Malaysia (77%). Participation is lower in Greater China

(61%), but Chinese retailers are now focusing more on loyalty

programs for several reasons. First, e-commerce is growing fast,

and off-line retailers are under intense pressure to protect their

share. In addition, slowing economic growth is hurting fast-

moving consumer goods (FMCG) retailers. Finally, more Chinese

consumers are paying greater attention to the quality of products

and the overall shopping experience.

How do loyalty-program participants indicate they’re a member of

the program? It varies by market. Presenting a membership card

to be scanned in store is the most common method in several of

the most mature loyalty markets, including New Zealand (85%),

Australia (81%) and Japan (62%). Digital methods are more

commonly used in Asia. Looking up the account by providing

an associated phone number or email address in store is most

common in Taiwan (60%), Vietnam (60%) and India (52%), while

logging into a retailer website is the most common method in

China (51%) and Indonesia (47%). In a few markets, mobile has

emerged as the channel of choice. Using a retailer’s mobile app

is the most commonly cited method in Thailand (49%) and Korea

(40%, tied with scanning the card in store). China (47%) and India

(45%) also exceed the global average when it comes to the use of

a retailer’s mobile app, as well as third-party apps that consolidate

program information (39% and 36%, respectively) and mobile

payment systems (38% and 38%, respectively).

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11Copyright © 2016 The Nielsen Company

Digital loyalty-program attributes or features are particularly

appealing in the region. Asia-Pacific has the highest percentage

of loyalty-program participants in the worldwide study who say

store-specific loyalty mobile apps are somewhat or very appealing

(69% versus 60% globally). Mobile apps are particularly attractive

in India (80%), Thailand (78%) and China (74%). Integration with

digital payment systems (78%) and with third-party apps that

consolidate loyalty-program information (63%) also are more

appealing in the region than globally (67% and 51%, respectively),

with India, China and Thailand the most enthusiastic supporters.

In fact, mobile features are so highly desirable that more than

two-thirds of loyalty-program members in Asia-Pacific (69%)

somewhat or strongly agree they’re more likely to participate in a

loyalty program if a mobile app is available, compared with 56%

globally.

“Undoubtedly, digital strategies must be a core part of any

retailer loyalty program in Asia-Pacific, and we expect to see

more interactive marketing with cross-sell by retail partners and

incentives based upon physical location,” said Alex Morgan,

executive director of global loyalty, Nielsen Asia-Pacific.

With respect to the most-valued benefits, product discounts

(51%) and rebates or cash back (45%) top the list in nearly all

countries in the region. The only exceptions: Japan and Indonesia,

where free shipping (51% and 45%, respectively) is second behind

product discounts (59% and 64%, respectively), and Korea, where

discounts and frequent-f lier points are valued equally (60% for

each benefit).

STRATEGIES FOR SUCCESS: DATA IS AT THE HEART OF ANY WINNING LOYALTY PROGRAMThe ultimate goal of any loyalty program is to provide a compelling

value proposition that keeps consumers coming back time after

time. How can retailers create valuable, differentiated loyalty

programs? Strategies should be driven by a deep understanding of

your consumers’ shopping decision process, and then programs

can designed to bring them back again and again.

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12 COUNTLESS TIMES OF SEEKING

Measure and monitor performance. Loyalty programs can be used

to drive better business decisions, as well as to refine program

offers. But to do both, loyalty program data must be tools for

retailer learning. Research costs prevent many retailers from

fully assessing whether their programs meet the objective of

increasing consumer share of wallet, but the importance of data

cannot be overstated and will only continue to grow. The future

lies in integration—combining granular, internal loyalty data with

rich contextual media and market data to make more insightful

decisions.

Use segmentation tools. Understand which consumer groups

loyalty programs really matter to and why. The execution of any

loyalty program should allow for personalization and dynamic

learning, but the initial design should be geared toward serving

the consumers whose behavior will be most inf luenced, and a

segmentation analysis will help identify those consumers.

Personalize the shopping experience. Winning loyalty programs

understand that every customer is an individual and that success

comes from giving customers what they want, not what the retailer

wants. Program offers that are unique to the shopping habits of

each consumer can not only drive brand affinity, but they can also

send a signal to the customer that they are valued patrons. In

fact, personalization deepens the shopper-retailer relationship,

enhancing engagement and encouraging shoppers to return again

and again to redeem their offers.

Provide offers customers value. Retailers need to use the breadth

of data available through their loyalty programs and predictive

analytics to identify the promotions to which a shopper is most

likely to respond and to establish a one-to-one communications

channel, providing shoppers offers they care most about in the

channel they most prefer. While bigger families may be enticed by

buy-one-get-one-free deals or stock-up offerings, older customers

may prefer special savings days when store traffic is lighter.

Differentiate your offering. How is your loyalty program different

than your competitors’? Give shoppers a compelling reason to

visit your store rather than another. Consider exclusive rewards

and in-store experiences that are unique to your location or brand

positioning and make it engaging and fun to participate for all

generations of consumers.

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13Copyright © 2016 The Nielsen Company

Leverage technology wisely. Advancements in technology and the

proliferation of mobile devices allow retailers to provide more

relevant, timely offers than ever before, and many consumers are

enthusiastic about integrating their digital devices with loyalty

programs. But a “build it and they will come” approach to digital

integration isn’t that simple. Retailers must leverage digital

tools that create value for consumers, and digital interactions

must be aligned with how much or how little consumers want to

be contacted. Consider an opt-in program, whereby consumers

indicate the level of frequency they wish to receive digital

communications.

Consider non-monetary rewards. Financial incentives are a must-

have, but non-monetary incentives are the differentiator of loyalty

programs, and can build the relationship between retailers and

shoppers. Retailers looking for ways to engage in more direct

interactions with consumers could try rewarding members for

referrals or interacting with the brand on social media. Even

better, retailers could use their loyalty programs for brand

building, incentivizing activities that fit with their brand image or

expertise. For example, brands that want to establish or cement

a reputation as a leader in the health-and-wellness space could

reward consumers for meeting exercise or health goals, while

those that want to solidify themselves as socially responsible

could consider rewarding consumers for volunteering, making

charitable donations or choosing more environmentally friendly

options. Above all, programs should be aligned with the more

important priorities and values of consumers.

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14Copyright © 2016 The Nielsen Company

ABOUT NIELSEN Nielsen Holdings plc (NYSE: NLSN) is a global performance

management company that provides a comprehensive understanding

of what consumers watch and buy. Nielsen’s Watch segment provides

media and advertising clients with Total Audience measurement services

for all devices on which content — video, audio and text — is consumed.

The Buy segment offers consumer packaged goods manufacturers

and retailers the industry’s only global view of retail performance

measurement. By integrating information from its Watch and Buy

segments and other data sources, Nielsen also provides its clients with

analytics that help improve performance. Nielsen, an S&P 500 company,

has operations in over 100 countries, covering more than 90% of the

world’s population.

For more information, visit www.nielsen.com.

Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and

the Nielsen logo are trademarks or registered trademarks of CZT/ACN

Trademarks, L.L.C. Other product and service names are trademarks or

registered trademarks of their respective companies. 16/10683

ABOUT THE NIELSEN GLOBAL SURVEY

The Nielsen Global Loyalty-Sentiment Survey was conducted

March 1-23, 2016, and polled more than 30,000 online consumers

in 63 countries throughout Asia-Pacific, Europe, Latin America,

the Middle East/Africa and North America. The sample includes

internet users who agreed to participate in this survey and has

quotas based on age and sex for each country. It is weighted to

be representative of internet consumers by country. Because the

sample is based on those who agreed to participate, no estimates

of theoretical sampling error can be calculated. However, a

probability sample of equivalent size would have a margin of

error of ±0.6% at the global level. This Nielsen survey is based

only on the behavior of respondents with online access. Internet

penetration rates vary by country. Nielsen uses a minimum

reporting standard of 60% internet penetration or an online

population of 10 million for survey inclusion.

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