Consumer s perception of digital rewards in loyalty programs:

Transcription

1 Consumer s perception of digital rewards in loyalty programs: INSIGHTS FROM A MULTI-COUNTRY RESEARCH Swiss e-commerce Conference 2016 Baden, 15/11/1016 1

2 WHAT WHY Multi-country primary market research commissioned by ECRM Group to Target Research in april 2016 Research questions: Which are the differences among key European Countries with respect to loyalty programs perception and experience? At which point is the digitalization process of rewards in loyalty programs? Which is the trade-off level among different reward features when consumers choose the benefits related to a loyalty program? HOW CAWI (Computer Aided Web Interviewing) using Certified Panel Structured questionnaire: Traditional + Conjoint section 2

3 SAMPLE OVERVIEW Target population Consumers, members of loyalty programs sponsored by Supermarkets Petrol companies Credit card/bankistitutions 5 european Countries Italy, Switzerland, Germany, France, UK Online panel contacts and complete interviews Data collection time frame 14 th April 28 th April 2016 COUNTRIES: ITALY 21% N=345 SWISS 21% N=345 GERMANY 20% N=315 FRANCE 18% N=295 UK 20% N=322 TOT SAMPLE 00% N=1622 GENDER: FEMALE 49% N=789 MALE 51% N=833 OCCUPATION: EMPLOYEE / WORKER 30% N=481 PENSIONER 25% N=406 MANAGER / ENTREPRENEUR / SELF EMPLOYED 18% N=285 STUDENT 10% N=161 HOMEMAKER 5% N=87 UNEMPLOYED 5% N=87 RETAILER /ARTISAN 4% N=61 OTHERS 4% N=58 AGE: YOUNG ADULTS 38% N=618 (18-35) MIDDLE-AGED ADULTS 40% N=654 (36-65) OLDER ADULTS 22% N=350 (>65) 3

4 MAIN INSIGHTS Ownership IT CH DE FR UK Do you participate in a point collection program of one of the following businesses/institutions? 82% 87% 71% 85% 85% 33% 33% 36% 29% 25% 29% 14% 15% 14% 7% Supermarkets Petrol companies Credit cards N.B. 100% total contacts IT CH DE FR UK 56% 51% 50% 51% 51% 40% The LP are more common in Supermarkets (80%) The LP of Petrol Companies have about 30% of penetration (except for France) The LP of Credit Cards are particularly popular in Switzerland and the UK (30%) In Italy there is the highest penetration of Electronic Shops and Bookshops LP 30% 28% 27% 23% 25% 26% 23% 24% 25% 22% 19% 18% 15% 12% 11% 18% 18% 18% 11% Clothing shops Electronics shops Furniture shops Airline companies Bookshops N.B. 100% total complete 4

5 MAIN INSIGHTS Rewards IT CH DE FR UK 51% 48% 48% 43% 41% Which is the most preferred type of reward? 34% 22% 24% 21% 19% 31% 4% 5% 6% 6% 4% 25% 27% 22% 20% The Discount (on the next purchase) is the most desired reward, while the Experience is the less appreciated Physical reward Discount Experience Gift Card Supermarkets Petrol companies Credit cards 44% 42% 39% 30% 26% 27% 27% 23% 24% 5% 5% 7% In all countries Gift Cards are growing popularity vs the physical prize. This trend is particularly evident within UK Respondents enrolled to supermarkets LP are the most sensitive to the discount lever Supermarkets, Petrol Companies and Credit Cards LP members prefer Gift Cards to physical prizes Physical reward Discount Experience Gift Card 5

6 MAIN INSIGHTS Rewards Which type of gift card would you prefer to receive? Physical/plastic card Digital:voucher sent by in real time Total UK FR DE CH IT 56% 54% 53% 55% 67% 51% 44% 46% 47% 45% 33% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Digital has almost reached Physical in consumer s preferences Italy is the european country where interest and preference towards digital is stronger 6

7 MAIN INSIGHTS Rewards Which aspects are most influential in your selection of a reward from a point collection program, regardless of the reward type? ITEM Usefulness of the reward Perceived value of the reward Ease/conv enience of receiv ing the reward Ease/conv enience of requesting the reward I mmediate av ailability of the reward Speed of delivery once the reward is available in the shop The reward is current/modern Originality of the reward Reputation of the brand associated with the reward Reward in digital format (e.g. via ) Possibility of combining reward from the same series/brand Possibility of transferring the reward to a third party IT CH DE FR UK Total sample THE MOST IMPORTANT FEATURES ARE: USEFULLNESS PERCEIVED VALUE EASE/CONVENIENCE OF RECEIVING THE REWARD 7

8 CONCLUSIONS Different perceptions of rewards in loyalty programs across the European Countries The Discount as reward is holding a strong position in consumer preferences, especially in grocery and retail loyalty programs, but Gift Card option is gaining ground as an innovative substitute of the traditional Physical reward Considering the digitalization process in rewarding, some of the key items in the research (ease in receiving/requesting reward, immediate availability) point out an opportunity to improve the processes through digitalization in all the countries surveyed A deeper analysis suggests that seeds of innovation are visible among mainstream consumers and traditional loyalty programs: digital Gift Cards are equally preferred to plastic cards and relevant segments of LP members are ready to move ahead towards new rewarding solutions 8