RAI – AIMIA: India Millennial Loyalty Survey

Released globally on January 30th 2014

available at www.aimia.com

WHAT DID WE LOOK AT?

3

Loyalty as a

Concept

Technology & Channel

Use

Data Concerns

Loyalty Program

Motivators

AN INTRODUCTION TO AIMIA

4 Proprietary and confidential. © 2013 Aimia. All rights reserved.

Global Leader

in Loyalty

Management

Source : Aimia March 2013

>20

worldwide

MARKETS

>30 worldwide

OFFICES

Customer

Analytics

Standalone

Loyalty

Services

Coalition

Loyalty

ACROSS

vertical industries

geographies

channels

22

COUNTRIES

4000 EMPLOYEES

ACROSS

vertical industries

geographies

channels

1250

PROGRAMS

280M HOUSEHOLDS

Aimia helps

companies build

deeper, more

engaged and more

profitable

relationships with

their customers

SHARING THE ANSWERS

5

Characteristics

of Indian Urban

Consumers

What Makes

Them Unique

Using these

Learnings in

Marketing &

Loyalty

Strategy

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=-HOyoYH1GuLQxM&tbnid=UqnpOlTZwMQujM:&ved=0CAUQjRw&url=http://www.skillsdevelopment.org/knowledge_portal/e-zine/summer_2012/indian_youth_time_to_listen.aspx&ei=BZXxUsCzLcy-rgeJ-oDoCw&bvm=bv.60444564,d.bmk&psig=AFQjCNENNVeOliZqYQ248w2xJQojshWHMA&ust=1391650231770004

TODAY’S CONSUMER Connected

Proprietary and confidential. © 2013 Aimia. All rights reserved.


Mobile Internet

is here

45%

of online consumers

access the internet

only through their

mobile devices

The young

dominate usage

85%

of smartphone and

social network users

are below the age

of 35

Though mostly used

now for search, fun,

social networking…

(e-commerce is still nascent)

60%

of urban internet users

surf for entertainment,

networking, business,

education and

shopping

TODAY’S CONSUMER Increasingly multi-channel



We are at

the tip

of the Iceberg

up to 8%

of India’s retail market

expected to be

online by 2020

Source: Euromonitor

The internet actually

has a high impact

on overall retail

40%

of India’s urban internet

users report that their

online activities

influence what they

buy, whether online or

offline

Source: BCG

and is expected

to skyrocket!

(even as e-commerce

begins to take off…)

5X

“Digitally Influenced”

purchases represent 5X

the e-Commerce

market. And will grow

fivefold by 2016!

Source: BCG

Social Networking

TODAY’S CONSUMER Social and vocal



Using Social (on mobile)

Seeking Opinions

Before purchase

Recommended brands

Q. For which of the following activities do you currently use

your mobile device?

72% said it was important for them know what data was being collected on them

TODAY’S CONSUMER Willing to share but private



9

9

INDIAN MILLENNIALS ARE MORE WILLING TO ENGAGE


CUSTOMERS ARE LOOKING FOR GENUINE DIALOGUE

11

THE BASICS

“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

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

“Referring family members

or relatives (to a) company

has to give

some rewards.”

MALE, 30, Married

HYDERABAD

COMMITMENT

“ They must take time to truly listen

to what their customers say.”

MALE, 28. Married AHMEDABAD


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=7eVHs_h_DfZe3M&tbnid=I1CWKBWPqmwLmM:&ved=0CAUQjRw&url=http://social.yourstory.com/2013/10/leap-taking-stab-skilling-indias-500-million-plus-youth-helping-find-job/&ei=TJTxUoHbEsuFrAf484CoDg&bvm=bv.60444564,d.bmk&psig=AFQjCNENNVeOliZqYQ248w2xJQojshWHMA&ust=1391650231770004

AND RETAILERS ARE TRYING TO RESPOND

12

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

IMPATIENCE OF THE YOUNG

“Youngsters want fast food not fine dining. We must

adapt to this culture.”

Head Marketing, department store

WHO’S LOYALTY?

“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


WHAT MAKES OUR CUSTOMERS UNIQUE?

New generations

with new behaviours

Loyalty will be built

on the mobile

Smartphone usage now crosses

generations

Life is at their

fingertips

More willing to engage with brands

Loyalty can change

their behaviour


THERE IS A CLEAR GAP IN THE INDIAN MARKET TODAY

14

MILLENNIALS WANT REWARDS FASTER THAN THEY RECEIVE THEM TODAY

APPAREL RETAIL AIRLINE FUEL RETAIL

• Earn ~2500 points

• Takes 14 months to get a

coffee worth of value

• Almost no redemption

value

HOTEL CHAIN

• Earn ~100 points annually

• Min 2 years

• Often expire by then

• Member usually

do not redeem

• Earn <1000 points

• Redeem in 3-5 years

• Often expire by then

• Average member

doesn’t redeem

• Top members get free

night, rest get voucher

• Often expire in 3-4 years

• >50% members

cannot redeem

Poor

track record

of most

programs

today

Q. How long does it take to earn a reward today in India?


INDIANS ARE INTERESTED IN MORE THAN JUST CASH REWARDS


17

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


THOSE WHO ENGAGE IN LOYALTY PROGRAMS ARE MORE LIKELY TO BE LOYAL

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


BEFORE YOU FOCUS ON DRIVING LOYALTY, IT’S IMPORTANT TO GET THE BASICS RIGHT

19

RAY KROC

McDonalds Chairman

LEARNING FROM OUR CUSTOMERS TO HELP US WIN

20

KEEP IT

SIMPLE

OPTIMIZE

FOR MOBILE

REWARD

INTERACTIONS

MAKE

REWARDS

ATTAINABLE

BE

SENSITIVE TO

PRIVACY


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=oMa0kJwRnGIVJM&tbnid=YeFLQjxtGo4NQM:&ved=0CAUQjRw&url=http://stampboards.net/viewtopic.php?f=6&t=26723&ei=sZLxUqH_DcSUrAfh2YDYAw&bvm=bv.60444564,d.bmk&psig=AFQjCNH4BNf0NcYvSn8gTHPOg4qH2Ugj2A&ust=1391649765071437

WE HAVE EXCELLENT EXPERIENCE IN REAL RELATIONSHIPS

THANK YOU

AKASH SAHAI

Managing Director, Aimia India

[email protected]

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RAI – AIMIA: India Millennial Loyalty Survey

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