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GET WITH

THE
PROGRAM
CARD-CARRYING CONSUMER
PERSPECTIVES ON RETAIL LOYALT Y-
PROGRAM PARTICIPATION AND PERKS

NOVEMBER 2016
FAITHFUL
FOLLOWERS OR
FAIR-WEATHER
FANS?
AROUND THE WORLD
Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More
than seven in 10 global respondents (72%) agree that, all other factors equal, theyll buy from a
retailer with a loyalty program over one without.

More than half of global loyalty-program participants (51%) say product discounts are among
their three most-valued loyalty-program benefits, followed by monetary rewards in the form of
rebates or cash back (45%). Generic deals, however, create little differentiation; retailers must
focus on connecting with consumer needs and delivering greater value.

Monetary rewards are important everywhere, but non-monetary rewards resonate more strongly
in some African/Middle Eastern countries than globally. Examples include recognition as
a valued customer in Morocco, Egypt and Pakistan and charitable donations in Egypt and
Morocco.

Consumers crave flexible loyalty programs. Roughly eight in 10 global loyalty-program


participants say it is 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 (81%) and to choose
among several types of rewards (79%).

Digital tools and features are particularly appealing in Asia-Pacific, where the highest
percentage of loyalty-program participants in the worldwide study rate as appealing store-
specific loyalty mobile apps (69%), integration with digital payment systems (78%) and
integration with third-party apps that consolidate loyalty-program information (63%).

2 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


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 Nielsens 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 theyd 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 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.

67% AGREE THAT THEY SHOP MORE


FREQUENTLY AND SPEND MORE AT
RETAILERS WITH LOYALT Y PROGRAMS.

Copyright 2016 The Nielsen Company 3


Loyalty programs are intended to ultimately increase a retailers share
of the consumers 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.

ABOUT THE GLOBAL SURVEY METHODOLOGY

The findings in this survey are based on respondents


with online access in 63 countries. While an online survey
methodology allows for tremendous scale and global reach, it
provides a perspective on the habits of only existing internet
users, not total populations. In developing markets where
online penetration is still growing, respondents may be
younger and more affluent than the general population of that
country. In addition, survey responses are based on claimed
behavior, rather than actual metered data. Cultural differences
in reporting sentiment are likely factors in the outlook across
countries. The reported results do not attempt to control or
correct for these differences; therefore, caution should be
exercised when comparing across countries and regions,
particularly across regional boundaries.

4 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


MONEY MAKES THE FINANCIAL INCENTIVES
DRIVE LOYALT Y PROGRAM
LOYALT Y PROGRAM PARTICIPATION

GO ROUND PERCENTAGE WHO SAY BENEFIT


IS AMONG THEIR THREE MOST-
VALUED REWARDS
It should come as no surprise that for the majority of respondents,
financial incentives are the primary reason for participating in loyalty MONETARY NON-MONETARY
programs. Two-thirds of global respondents who participate in loyalty
programs (67%) somewhat or strongly agree that they join these
PRODUCT
programs only to get free products or discounts. When it comes to DISCOUNTS 51%
the most-valued loyalty-program benefits, monetary incentives top
the list in every region, by a wide margin. More than half of global
REBATES OR
loyalty-program participants (51%) say product discounts are among
CASH BACK
45%
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 FREE
back is slightly more popular than discounts in North America (49% PRODUCTS 33%
versus 46%) and Latin America (48% versus 47%). However, creating
meaningful differentiation requires offering more than generic deals.
FREE SHIPPING 32%
While tangible discounts are a usage driver for loyalty programs,
share-driving programs go far beyond these benefits, said Keely.
FREQUENT
Tailoring loyalty benefits for specific consumers, and using the
FLYER POINTS 22%
loyalty program engagement vehiclesbe it via an app, email, or in-
store interactionall allow retailers to personalize the loyalty program EXCLUSIVE
so that its not just a discount vehicle. Providing advice, tailored ACCESS TO
offerings, and other services will delight the loyalty-program member. SALES OR 15%
In this way, there is no one loyalty programeach shopper will have MERCHANDISE
his or her own version of the program, tailored to his or specific
DISCOUNTED
needs. %
SHIPPING
13%
Financial rewards are the most highly-valued loyalty-program benefits
HIGHER
for members of all ages, but product discounts and cash back or PRIORITY 12%
rebates are rated higher by older respondents than by their younger SERVICE
counterparts. Younger loyalty-program participants value a few non-
monetary benefits more highly than their older counterparts, though RECOGNITION
the percentages who say these are among the top three benefits are
AS A VALUED 12%
CUSTOMER
rather low. Fifteen percent of Millennials say higher-priority service,
such as first-class seating or VIP customer service is one of their top PERSONALIZED
three loyalty-program benefits, more than double the percentage of PRODUCTS 10%
Baby Boomers and Silent Generation respondents (6% of each group) OR SERVICE
EXPERIENCES
who say so. In addition, 12% of Millennials say their most-valued
benefits include personalized products or service experiences, and CHARITABLE 7%
10% say the same of charitable donations. These response rates are DONATION
more than three times higher than for Baby Boomers (3% for each
type of benefits) and Silent Generation respondents (4% and 3%, Base: All respondents who are members of retail loyalty programs
respectively). Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-
Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 5


MILLENNIALS RATE MANY NON-MONETARY BENEFITS MORE HIGHLY THAN BOOMERS

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MILLENNIALS BOOMERS

PRODUCT REBATES OR FREE FREE DISCOUNTED


DISCOUNTS CASH BACK PRODUCTS SHIPPING SHIPPING
MONETARY

48% 41% 33% 32% 17%


57% 54% 33% 34% 9%

FREQUENT HIGHER PRIORIT Y EXCLUSIVE ACCESS RECOGNITION


FLYER POINTS SERVICE TO SALES OR AS A VALUED
MERCHANDISE CUSTOMER
21% 15% 14% 12%
24% 6% 14% 9%
NON-MONETARY

PERSONALIZED CHARITABLE
PRODUCTS OR SERVICE DONATION
EXPERIENCES
12% 10%
3% 3%

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

6 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


FLEXIBILIT Y IS THE
FUTURE OF RETAIL
LOYALT Y
When it comes to the loyalty-program features members are looking for,
flexibility is very important. More than eight in 10 global loyalty-program
participants (81%) say its 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 cant 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 flexible 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.

Copyright 2016 The Nielsen Company 7


MAKE LOYALT Y PROGRAMS FLEXIBLE, PERSONAL AND REWARDING

PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY

POINTS OR REWARDS FOR PURCHASES MADE IN STORE, 81%


ON A WEBSITE OR ON A MOBILE DEVICE

THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS 79%

PERSONALIZATION

PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS 77%

PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS 62%

REWARDS

OPPORTUNITIES TO EARN BONUSES BY DOING SOME 76%


SPECIFIED ACTIVITY

POINTS OR REWARDS FOR REFERRALS 67%


TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR
CUSTOMERS IN A PARTICULAR LEVEL OR STATUS 60%

TECHNOLOGY

INTEGRATION WITH MOBILE PAYMENT SYSTEM 67%

POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES


62%
ON SOCIAL NETWORKS

STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 60%

INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE


LOYALTY PROGRAM INFORMATION 51%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

8 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


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
featuresparticularly those regarding mobile or social-media integration.

TECHNOLOGY-BASED LOYALT Y-PROGRAM FEATURES ARE


MUCH MORE APPEALING TO MILLENNIALS THAN BABY BOOMERS

PERCENTAGE OF GLOBAL RESPONDENTS WHO RATE THE FEATURE VERY OR SOMEWHAT APPEALING

MILLENNIALS BOOMERS

FLEXIBILITY

POINTS OR REWARDS FOR PURCHASES MADE IN STORE, 80%


ON A WEBSITE OR ON A MOBILE DEVICE 79%

THE ABILITY TO CHOOSE AMONG SEVERAL TYPES OF REWARDS


81%
75%

PERSONALIZATION

PERSONALIZED DISCOUNTS OR PROMOTIONAL OFFERINGS 79%


70%
69%
PERSONALIZED PRODUCT OR SERVICE RECOMMENDATIONS
45%

REWARDS

OPPORTUNITIES TO EARN BONUSES BY DOING SOME 81%


SPECIFIED ACTIVITY 65%
72%
POINTS OR REWARDS FOR REFERRALS
51%
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR 69%
CUSTOMERS IN A PARTICULAR LEVEL OR STATUS 45%

TECHNOLOGY

76%
INTEGRATION WITH MOBILE PAYMENT SYSTEM 48%
POINTS OR REWARDS FOR SHARING PRODUCTS AND PAGES 72%
ON SOCIAL NETWORKS 40%

STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 70%


40%
INTEGRATION WITH THIRD-PARTY APPS THAT CONSOLIDATE 63%
LOYALTY PROGRAM INFORMATION 29%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 9


REGIONAL ROUNDUP

LOYALT Y
L ANDSCAPE
AROUND THE
WORLD

10 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


ASIA-PACIFIC: AN
APPETITE FOR APPS
In 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, its 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
VIETNAM , NEW
say they participate in one or more retail loyalty programs (74% and 72%, ZEAL AND AND
AUSTRALIA HAVE
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 THE HIGHEST SELF-
retailers are now focusing more on loyalty programs for several reasons.
REPORTED RATES
First, e-commerce is growing fast, and off-line retailers are under intense
pressure to protect their share. In addition, slowing economic growth OFLOYALT Y-
PROGRAM
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.
PARTICIPATION
How do loyalty-program participants indicate theyre a member of the IN ASIA-PACIFIC.
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 retailers 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 retailers mobile app, as well as third-party apps that
consolidate program information (39% and 36%, respectively) and mobile
payment systems (38% and 38%, respectively).

Copyright 2016 The Nielsen Company 11


DIGITAL MEMBERSHIP METHODS ARE POPUL AR IN EMERGING ASIAN MARKETS

HOW DO YOU INDICATE THAT YOURE A LOYALTY-PROGRAM MEMBER?

REGIONAL AVERAGE ADVANCED ECONOMIES DEVELOPING/EMERGING ECONOMIES

Look up account by providing


phone number, email Enter information or
Scan card in store address or other personal log into account on
information in store retailer website

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
New Zealand Taiwan Vietnam
OLDER METHODS

Australia Vietnam China


Japan India Malaysia
Philippines Indonesia Indonesia
Malaysia China Singapore
Singapore Thailand Thailand
Taiwan Hong Kong India
Vietnam Malaysia Philippines
India Singapore Hong Kong
China South Korea Taiwan
Philippines Japan
South Korea
New Zealand South Korea
Hong Kong
Australia New Zealand
Indonesia
Japan Australia
Thailand
Global Average Global Average Global Average

46% 43% 45%

Enter and store loyalty program


information in a third-party Enter and store loyalty
Use retailer's mobile app app that allows me to store program information
multiple reward cards in one place into digital payment system

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
NEWER METHODS

Thailand China China


China India India
India Vietnam Thailand
South Korea South Korea Indonesia
Vietnam Indonesia Vietnam
Indonesia Thailand Philippines
Philippines Malaysia Malaysia
Hong Kong Philippines Singapore
Singapore Singapore Hong Kong
Malaysia Taiwan South Korea
Taiwan Hong Kong Taiwan
Japan Australia Australia
Australia Japan Japan
New Zealand New Zealand New Zealand
Global Average Global Average Global Average

42% 32% 32%

Note: Market classification based on IMF definitions


Base: All respondents who are members of retail loyalty programs
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

12 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


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 theyre 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-flier
points are valued equally (60% for each benefit).

69%
OF LOYALT Y-PROGRAM MEMBERS
AGREE THAT THEYRE MORE LIKELY TO
PARTICIPATE IN A LOYALT Y PROGRAM IF
A MOBILE APP IS AVAIL ABLE.

Copyright 2016 The Nielsen Company 13


TECHNOLOGY-BASED FEATURES ARE HIGHLY DESIRABLE IN ASIA

PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 83% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
CHINA 89%
THE ABILITY TO CHOOSE AMONG 81% PHILIPPINES 86%
SEVERAL TYPES OF REWARDS INDIA 84%
SINGAPORE 83%
THAIL AND 83%
VIETNAM 83%
PERSONALIZATION

TOP COUNTRIES IN THE


PERSONALIZED DISCOUNTS 79% REGION WHERE THIS
OR PROMOTIONAL OFFERINGS
ATTRIBUTE IS APPEALING
PERSONALIZED PRODUCT OR SERVICE 69%
RECOMMENDATIONS INDIA 86%
THAIL AND 86%
PHILIPPINES 85%
CHINA 83%
BONUSES/STATUS TAIWAN 82%

OPPORTUNITIES TO EARN BONUSES BY DOING


79% TOP COUNTRIES IN THE
SOME SPECIFIED ACTIVITY
REGION WHERE THIS
POINTS OR REWARDS FOR REFERRALS 73% ATTRIBUTE IS APPEALING
TIERED PROGRAMS WITH EXCLUSIVE CHINA 85%
REWARDS FOR CUSTOMERS IN A PARTICULAR PHILIPPINES 85%
68%
LEVEL OR STATUS INDIA 84%
THAIL AND 84%
MAL AYSIA 80%

TECHNOLOGY

INTEGRATION WITH MOBILE PAYMENT SYSTEM 78% TOP COUNTRIES IN THE


REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR SHARING PRODUCTS 71%
AND PAGES ON SOCIAL NETWORKS INDIA 85%
CHINA 84%
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 69% THAIL AND 80%
PHILIPPINES 76%
INTEGRATION WITH THIRD-PARTY APPS THAT INDONESIA 75%
63%
CONSOLIDATE LOYALTY PROGRAM INFORMATION

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

14 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


MONETARY LOYALT Y REWARDS ARE HIGHLY VALUED IN ASIA-PACIFIC

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MONETARY NON-MONETARY

TOP COUNTRIES FOR TOP COUNTRIES FOR


PRODUCT SELECTED MONETARY SELECTED NON-
DISCOUNTS
49%
MOTIVATORS MONETARY MOTIVATORS

REBATES OR
CASH BACK
44% PRODUCT FREQUENT
DISCOUNTS FLYER POINTS

INDONESIA 64% SOUTH KOREA 60%


FREE SHIPPING 34% MAL AYSIA 63% AUSTRALIA 37%
SINGAPORE 62% CHINA 32%
SOUTH KOREA 60% JAPAN 27%
JAPAN 59% VIETNAM 26%
FREE
PRODUCTS
29%
REBATES OR HIGHER PRIORITY
CASH BACK SERVICE
FREQUENT
FLYER POINTS 25%
TAIWAN 73% VIETNAM 21%
SINGAPORE 67% INDIA 20%
HONG KONG 61% INDONESIA 19%
DISCOUNTED MAL AYSIA 60% CHINA 17%
%
SHIPPING 16% CHINA 52% PHILIPPINES 17%
PHILIPPINES 52%

HIGHER
EXCLUSIVE ACCESS
PRIORITY 16% FREE
TO SALES OR
SERVICE SHIPPING
MERCHANDISE
EXCLUSIVE
ACCESS TO JAPAN 51% JAPAN 26%
SALES OR
15% INDONESIA 45% SOUTH KOREA 24%
VIETNAM 37% TAIWAN 23%
MERCHANDISE INDIA 36% THAIL AND 18%
SOUTH KOREA 36% SINGAPORE 16%
RECOGNITION
AS A VALUED 13%
CUSTOMER FREE RECOGNITION
PRODUCTS AS A VALUED
PERSONALIZED CUSTOMER
PRODUCTS 13%
OR SERVICE PHILIPPINES 45% NEW ZEAL AND 20%
EXPERIENCES INDONESIA 43% INDIA 18%
NEW ZEAL AND 41% PHILIPPINES 18%
CHARITABLE 8% MAL AYSIA 40% VIETNAM 16%
THAIL AND 37% AUSTRALIA 13%
DONATION SINGAPORE 13%

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 15


EUROPE:
NAVIGATING A
LONG-STANDING
LOYALT Y
L ABYRINTH
Loyalty programs are well established in Europe, and programs can be
quite complex. Some retailers offer stand-alone programs, while others
are part of coalition programs that span multiple retailers. Some even
offer multiple programs, providing time-limited promotions in addition
to their own programs or participation in a loyalty coalition.

Nearly two-thirds of online respondents in Europe (66%) say they


belong to one or more loyalty programs. Participation rates vary widely,
however. While Europe has some of the highest self-reported rates in
the worldwide study, it also has some of the lowest. Ninety-four percent
of respondents in Finland, 90% in the U.K. and 89% in Lithuania
and Slovenia say they participate in a loyalty program, the highest
percentages in the study. However, fewer than half of respondents in
Kazakhstan (41%) and Denmark (49%) say they belong to one or more
programs. And participation isnt much higher in Russia (53%), Turkey
(54%), the Netherlands (54%) or Ukraine (55%).

When it comes to the methods loyalty-program participants use to


indicate membership, scanning a card in a storecited by 69% of
European respondentsis the most common method used in every
country in the region. But its particularly dominant in some markets,
such as Finland, where this method is cited by 93% of loyalty-program
participants, followed by Ireland (84%), Latvia (84%), the U.K. (82%),
the Czech Republic (80%) and Austria (80%). However, in-store card
scanning is the main method used by minorities of loyalty-program
participants in other countries, including Turkey (49%), Spain (45%) and
Israel (41%). In Turkey, nearly as many respondents (48%) say the way
they indicate theyre a loyalty-program member is by providing personal
information in store; in Israel, using a retailers mobile app is a close
second (40%). In Spain, nearly one-third (31%) say their usual method is
logging into an account online.

16 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


Mobile-based usage methods are considerably less common in most
European countries. This finding is consistent with findings about
other consumer behaviors: Mature-market consumers are generally
slower to adopt new digital technologies for payments, online shopping,
and social media. Less than one-fifth of European loyalty-program
participants (18%) say they use a retailers mobile app to indicate theyre
a program member, and less than one-tenth say they store membership
information in third-party apps or mobile wallets (7% each), the lowest
levels globally. Retailer mobile apps are more popular in two of the
markets with the lowest use of physical cards: Israel (40%) and Turkey
(38%). Turkey also has the highest self-reported use of third-party apps
in Europe (17%), followed by Ireland (14%) and Romania (13%).

Loyalty programs must embrace channel diversity, since they can be


a vital enabler in preventing the basket-splitting behaviors that are
affecting retail revenues, said Adrian Baker, retail product leader,
Nielsen. Customers are shopping online, using mobile apps, and
benefiting from delivery options, such as click and collect, all activities
where their loyalty card can be automatically linked to the account.
Of course, the distinction between digital and in-person shopping is
important to understand, but retailers really need to determine the
drivers of that change in order to set strategies to win in this crucial
battleground. This is where the unique identifier for each member of a
loyalty scheme plays such an important role.

Copyright 2016 The Nielsen Company 17


OLD-SCHOOL METHODS DOMINATE IN EUROPE

HOW DO YOU INDICATE THAT YOURE A LOYALTY-PROGRAM MEMBER?

REGIONAL AVERAGE ADVANCED ECONOMIES DEVELOPING/EMERGING ECONOMIES

OLDER METHODS NEWER METHODS

Scan card in store Use retailer's mobile app

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Finland Israel
Ireland Turkey
Lithuania Portugal
United Kingdom Norway
Austria Serbia
Czech Republic Switzerland
Italy Romania
Croatia Bulgaria
Latvia Spain
Belgium Greece
Netherlands Croatia
Germany Russia
Hungary Slovenia
Sweden Austria
Slovenia Ukraine
Denmark Belarus
Estonia Kazakhstan
Switzerland Poland
Slovakia Netherlands
Norway Sweden
Portugal United Kingdom
Belarus Denmark
Greece Italy
Romania Slovakia
Ukraine Germany
Russia Czech Republic
Serbia Finland
France France
Poland Belgium
Bulgaria Ireland
Kazakhstan Hungary
Turkey Lithuania
Spain Latvia
Israel Estonia
Global Average Global Average
69% 18%

REGIONAL GLOBAL Enter and store loyalty REGIONAL GLOBAL


AVERAGE AVERAGE program information in a AVERAGE AVERAGE
Look up account by providing
phone number, email third-party app that allows
address or other personal 24% 36% me to store multiple reward 7% 23%
information in store cards in one place

Enter information or
log into account on
29% 39% Enter and store loyalty 7% 23%
program information
retailer website into digital payment system

Note: Market classification based on IMF definitions


Base: All respondents who are members of retail loyalty programs
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

18 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


Monetary rewards, particularly product discounts, are quite enticing
for European loyalty-program participants. Sixty-two percent of loyalty-
program members in the region say product discounts are among
their three most valued benefits, the highest percentage in the study
by a wide margin (the next-highest percentage is 49% in Asia-Pacific).
Product discounts are the most-preferred benefit in the majority of
countries in Europe with a few exceptions: Rebates or cash back are
preferred in Greece (68%), Hungary (68%) and the Scandinavian
countries of Finland (70%), Norway (59%), Sweden (58%) and Denmark
(55%). Respondents in Italy and Switzerland have equal preferences
for product discounts and rebates or cash back (58% for each type of
benefit in Italy and 56% in Switzerland).

Across the region as a whole, few loyalty-program participants include


non-monetary benefits among their top incentives, but these benefits
are important in some markets. While only 14% of European participants
say exclusive access to sales or merchandise is among their most-valued
benefits, this benefit is among the most valued for 55% of respondents
in Finland, 37% in Portugal, 31% in Ukraine, 28% in Belarus and 27%
in Russia. Recognition as a valued customer is more highly valued in
Ireland (20%) and the U.K. (20%) than in Europe as a whole (10%).
Likewise, only 6% of European respondents say higher-priority service
is among their top three benefits, but the percentage placing it in the
top three is triple that number in Turkey (18%) and at least double in
Kazakhstan (16%), Ukraine (15%) and Israel (12%).

Copyright 2016 The Nielsen Company 19


MONETARY PERKS DOMINATE IN EUROPE

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MONETARY NON-MONETARY

TOP COUNTRIES FOR TOP COUNTRIES FOR


PRODUCT SELECTED MONETARY SELECTED NON-
DISCOUNTS
62% MOTIVATORS MONETARY MOTIVATORS

REBATES OR
CASH BACK
46% PRODUCT FREQUENT
DISCOUNTS FLYER POINTS

UKRAINE 87% DENMARK 47%


FREE
PRODUCTS
38% RUSSIA 85% GREECE 45%
BEL ARUS 82% FRANCE 44%
KAZAKHSTAN 82% ESTONIA 43%
CZECH REPUBLIC 79% SWEDEN 41%
ESTONIA 79%
FREE SHIPPING 25% CROATIA 79%

REBATES OR HIGHER PRIORITY


FREQUENT CASH BACK SERVICE
FLYER POINTS 17%
FINL AND 75% TURKEY 18%
EXCLUSIVE GREECE 68% KAZAKHSTAN 16%
ACCESS TO HUNGARY 68% UKRAINE 15%
SALES OR 14% SLOVENIA 67% ISRAEL 12%
AUSTRIA 63% BULGARIA 9%
MERCHANDISE GERMANY 63%
RECOGNITION
AS A VALUED 10% FREE
EXCLUSIVE ACCESS
CUSTOMER TO SALES OR
SHIPPING
MERCHANDISE
DISCOUNTED
%
SHIPPING
9% AUSTRIA 40%
SPAIN 39%
FINL AND 55%
PORTUGAL 37%
ROMANIA 39% UKRAINE 31%
SLOVAKIA 38% BEL ARUS 28%
HIGHER TURKEY 37% RUSSIA 27%
PRIORITY 6% BEL ARUS 37%
SERVICE
FREE RECOGNITION
PERSONALIZED PRODUCTS AS A VALUED
PRODUCTS 6% CUSTOMER
OR SERVICE CROATIA 57% UNITED KINGDOM 20%
EXPERIENCES NETHERL ANDS 52% IREL AND 20%
POL AND 49% NETHERL ANDS 15%
CHARITABLE 5% BELGIUM 47% TURKEY 15%
DONATION SPAIN 44% SWITZERL AND 13%
ITALY 44% SERBIA 13%
KAZAKHSTAN 13%

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

20 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


Like most loyalty-program participants around the world, the majority
of European members want to earn rewards across channels and
choose among several redemption options. Three-quarters of European
loyalty-program participants rate each of these features (75% and 74%,
respectively) as somewhat or highly appealing. Also highly rated are
personalized promotional offers (cited by 72%) and bonus opportunities
(71%).

Personalization is the future of loyalty programs in Europe, and it will


be a powerful tool for breaking the promotion-dependency cycle that is
so prevalent in the region, said Petr Kriklan, director of retail analytics,
Central and Eastern Europe, Nielsen. Personalization is still in its
nascent stages, however, and many retailers havent fully determined
how to best use their data to ensure theyre reaching the right
customers. Rather, they execute simple mass-segment strategies that
arent reflective of individual needs and preferences. To move loyalty
programs forward, retailers need to advance their analytics capabilities
by improving their internal capabilities and partnering with experts
who can provide even richer data and powerful tools that enable true
customization.

Tiered programs and mobile features are significantly less enticing


in Europe than globally. Less than half of European loyalty-program
participants say tiered programs with exclusive rewards for customers
whove achieved a particular level or status are appealing (47%). Similar
percentages say a store-specific mobile app (47%) or integration with
a mobile payment system (49%) is appealing. But there are clear
exceptions to the regional trend.

Mobile apps are extremely appealing in several of the emerging


European markets, including Ukraine (81%), Russia (80%), Kazakhstan
(74%) and Turkey (73%). Mobile-wallet integration is also rated more
favorably in these markets and a few others. Eighty percent of loyalty-
program participants in Turkey, 72% in Kazakhstan, 67% in Serbia and
Greece, 65% in Belarus and Russia, and 64% in Ukraine say integration
with a mobile payment system is appealing.

Integration with a third-party app that consolidates loyalty-program


information has very limited appeal in Europe; only 28% say this feature
is appealing. Like retailer apps and mobile wallets, however, this feature
is more attractive in Turkey (62%), Serbia (41%), Romania (38%) and
Greece (37%). Bulgaria (37%) also exceeds the regional average.

Copyright 2016 The Nielsen Company 21


TECHNOLOGY-BASED FEATURES HAVE ROOM TO GROW IN EUROPE

PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 75% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
CROATIA 83%
THE ABILITY TO CHOOSE AMONG 74% TURKEY 83%
SEVERAL TYPES OF REWARDS SERBIA 83%
GREECE 81%
HUNGARY 80%
ROMANIA 80%
PERSONALIZATION BEL ARUS 80%
KAZAKHSTAN 80%

PERSONALIZED DISCOUNTS 72%


OR PROMOTIONAL OFFERINGS TOP COUNTRIES IN THE
REGION WHERE THIS
PERSONALIZED PRODUCT OR SERVICE 49% ATTRIBUTE IS APPEALING
RECOMMENDATIONS
TURKEY 87%
CROATIA 84%
ISRAEL 81%
BONUSES/STATUS PORTUGAL 81%
SERBIA 81%

OPPORTUNITIES TO EARN BONUSES BY DOING 71%


SOME SPECIFIED ACTIVITY TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR REFERRALS 55% ATTRIBUTE IS APPEALING
TIERED PROGRAMS WITH EXCLUSIVE BEL ARUS 88%
REWARDS FOR CUSTOMERS IN A PARTICULAR 47% RUSSIA 87%
LEVEL OR STATUS UKRAINE 87%
SERBIA 87%
KAZAKHSTAN 85%
TECHNOLOGY

TOP COUNTRIES IN THE


INTEGRATION WITH MOBILE PAYMENT SYSTEM 49% REGION WHERE THIS
ATTRIBUTE IS APPEALING
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 47% TURKEY 80%
KAZAKHSTAN 72%
POINTS OR REWARDS FOR SHARING PRODUCTS GREECE 67%
AND PAGES ON SOCIAL NETWORKS 44%
SERBIA 67%
RUSSIA 65%
INTEGRATION WITH THIRD-PARTY APPS THAT BEL ARUS 65%
CONSOLIDATE LOYALTY PROGRAM INFORMATION 28%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

22 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


AFRICA/MIDDLE
EAST: FINDING
VALUE IN
PERSONALIZED
PERKS
Just over half of online respondents in the six countries surveyed in Africa/
Middle East (55%) say they belong to one or more loyalty programs, but
participation rates vary dramatically. Participation is highest in South
Africa and the United Arab Emirates, where more than three-quarters of
respondents say theyre members of retail loyalty programs (84% and 77%,
respectively). In Egypt and Pakistan, however, less than half (45% and 38%,
respectively) say they participate in a retail loyalty program.

In Africa and the Middle East, participation in retail loyalty programs is


closely tied to the strength of modern trade, said Craig Henry, managing
director, Retailer Vertical, Africa and Middle East, Nielsen. Modern trade
is still in a growth phase, with very early-stage development in many
countries in the region. The high membership rate in South Africa speaks
to the relatively long history of loyalty programs and high penetration in
the market. In Egypt, however, loyalty programs and modern trade are still
in their infancy, and penetration is lower due to higher rates of shopping at
traditional trade outlets and pressure on consumer spending.

Just as diverse are the ways loyalty-program participants indicate theyre


members. South Africa has one of the highest incidences of physical card
use in the world (82%), while Egypt has one of the lowest rates (26%).
Roughly one-third of loyalty-program participants in every country in
the region look up their account by providing a phone number or email
address in store, and its the most commonly used method in Egypt (35%).
In addition, more than three in 10 program members in every country
in the region except South Africa say they enter information or log into
their account on a retailer website. In fact, thats the most commonly
used method in Morocco and Saudi Arabia, cited by 39% and 36% of
respondents, respectively. In South Africa, only 21% say they look up their
account in store by providing personal information.

The use of a retailers mobile app is more common in Pakistan (33%) than
the other countries in the region (25% on average). Fewer than one-fifth
of Africa/Middle Eastern loyalty-program participants have entered their
program information in a mobile wallet (19%) or third-party app (16%),

Copyright 2016 The Nielsen Company 23


but the use of mobile wallets is notably higher in Morocco (25%), which
along with the United Arab Emirates also has above-average use of third-
party apps (21% and 25%, respectively).

Technology adoption rates and the age of the loyalty program possibly
play a role in the way in which retailers engage with shoppers, said
Henry. The newer the program, the less likely it is to be card based.

A MIX OF OLD AND NEW METHODS ARE USED IN AFRICA/MIDDLE EAST

HOW DO YOU INDICATE THAT YOURE A LOYALTY-PROGRAM MEMBER?

REGIONAL AVERAGE

Look up account by providing


phone number, email Enter information or
Scan card in store address or other personal log into account on
information in store retailer website
OLDER METHODS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
South Africa Morocco Egypt
United
Arab Emirates Saudi Arabia Pakistan
Pakistan United Saudi Arabia
Arab Emirates
Saudi Arabia Pakistan United Arab Emirates
Egypt Egypt South Africa
Morocco South Africa Morocco
Global Average 53% Global Average Global Average
46% 31% 33%

Enter and store loyalty program


information in a third-party Enter and store loyalty
Use retailer's mobile app app that allows me to store program information
multiple reward cards in one place into digital payment system
NEWER METHODS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Pakistan United 25% Morocco


Arab Emirates
South Africa Morocco 21% Pakistan
Morocco Saudi Arabia 17%
United
Arab Emirates
United
Arab Emirates Pakistan 16% Egypt
Egypt Egypt 14% Saudi Arabia
Saudi Arabia South Africa 13% South Africa
Global Average Global Average 23% Global Average

25% 16% 19%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

24 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


Monetary rewards are more highly valued in South Africa than in the
rest of the countries in the region. Nearly seven in 10 South African
loyalty-program participants say rebates or cash back (69%) or product
discounts (67%) are among their top three rewardsresponse rates that
are 24 and 16 percentage points above the global average, respectively.

While financial incentives are important everywhere, non-monetary


rewards are important to a notable portion of respondents in the
region. Recognition as a valued customer is more important in
Morocco, Egypt and Pakistan than globally. In fact, in Morocco this
attribute is listed as the third most valued benefit, cited by 26% of
loyalty-program participants, the highest percentage globally. Twenty-
one percent in Egypt and 20% in Pakistan say recognition is among
the top three rewards valued most. Morocco also has the largest
percentage of respondents in the study who say personalized products
and experiences are among the most-valued benefits (18% versus 10%
globally), and it has the second-highest percentage of respondents who
say charitable donations are among the most-preferred rewards (19%),
trailing only Egypt (21%). Higher-priority service also is valued more in
Morocco than globally (18% versus 12%, respectively).

In the markets where modern-trade penetration is lower, loyalty-


program members tend to be more affluent and more willing to give
back to those in need, said Henry. In African and Middle Eastern
countries where Muslim populations are more prevalent, we find
retailers have loyalty programs that promote charitable giving, which is
core to Islamic values.

26%
OF LOYALT Y-PROGRAM PARTICIPANTS IN MOROCCO
SAY RECOGNITION AS A VALUED CUSTOMER IS
AMONG THEIR THREE MOST VALUED REWARDS, THE
HIGHEST PERCENTAGE GLOBALLY.

Copyright 2016 The Nielsen Company 25


NON-MONETARY REWARDS ARE IMPORTANT TO A NOTABLE
PERCENTAGE IN AFRICA/MIDDLE EAST

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MONETARY NON-MONETARY

TOP COUNTRIES FOR TOP COUNTRIES FOR


REBATES OR SELECTED MONETARY SELECTED NON-
CASH BACK 42% MOTIVATORS MONETARY MOTIVATORS

PRODUCT
DISCOUNTS
41% REBATES OR RECOGNITION
AS A VALUED
CASH BACK
CUSTOMER
MOROCCO 26%
FREE SOUTH AFRICA 69%
PRODUCTS
38% UNITED ARAB EMIRATES 45%
EGYPT 21%
PAKISTAN 20%
SAUDI ARABIA 38%
SAUDI ARABIA 14%
EGYPT 35%
SOUTH AFRICA 14%
MOROCCO 29%
UNITED ARAB EMIRATES 13%
FREE SHIPPING 27% PAKISTAN 19%

PRODUCT FREQUENT
RECOGNITION DISCOUNTS FLYER POINTS
AS A VALUED 18%
CUSTOMER SOUTH AFRICA 67% UNITED ARAB EMIRATES 28%
PAKISTAN 45% SAUDI ARABIA 16%
UNITED ARAB EMIRATES 42% MOROCCO 16%
FREQUENT
FLYER POINTS 14% SAUDI ARABIA
EGYPT 23%
38% EGYPT 13%
PAKISTAN 13%
MOROCCO 18% SOUTH AFRICA 9%

CHARITABLE
DONATION 13% FREE CHARITABLE
PRODUCTS DONATION

DISCOUNTED SOUTH AFRICA 43% EGYPT 21%


%
SHIPPING
12% EGYPT 41% MOROCCO 19%
UNITED ARAB EMIRATES 38% SAUDI ARABIA 13%
PAKISTAN 38% UNITED ARAB EMIRATES 8%
HIGHER MOROCCO 33% SOUTH AFRICA 8%
PRIORITY 11% SAUDI ARABIA 29% PAKISTAN 6%
SERVICE
EXCLUSIVE FREE HIGHER PRIORITY
ACCESS TO SHIPPING SERVICE
SALES OR 11%
MERCHANDISE PAKISTAN 39% MOROCCO 18%
EGYPT 33%
PERSONALIZED SAUDI ARABIA 29%
PAKISTAN 15%
SAUDI ARABIA 12%
PRODUCTS 10% MOROCCO 25% UNITED ARAB EMIRATES 11%
OR SERVICE UNITED ARAB EMIRATES 20% EGYPT 10%
EXPERIENCES SOUTH AFRICA 17% SOUTH AFRICA 5%

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

26 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


The appeal of various loyalty-program features in Africa/Middle East
largely mirrors the global list. Cross-channel integration and flexible
rewards are most enticing (73% each), while personalized promotional
offers (72%) and the opportunity to earn bonuses by completing a
specified activity (71%) follow closely behind. Sentiment is similar
across the six countries surveyed in the region.

A WELL-MIXED BAL ANCE OF FEATURES IS IMPORTANT IN AFRICA/MIDDLE EAST

PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 73% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
SOUTH AFRICA 84%
THE ABILITY TO CHOOSE AMONG SEVERAL 73% UNITED ARAB EMIRATES 72%
TYPES OF REWARDS EGYPT 72%
PAKISTAN 70%
SAUDI ARABIA 68%
PERSONALIZATION MOROCCO 58%

PERSONALIZED DISCOUNTS OR PROMOTIONAL TOP COUNTRIES IN THE


72% REGION WHERE THIS
OFFERINGS
ATTRIBUTE IS APPEALING
PERSONALIZED PRODUCT OR SERVICE 63% SOUTH AFRICA 81%
RECOMMENDATIONS
PAKISTAN 78%
UNITED ARAB EMIRATES 72%
SAUDI ARABIA 72%
BONUSES/STATUS EGYPT 69%
MOROCCO 56%

OPPORTUNITIES TO EARN BONUSES BY DOING


71% TOP COUNTRIES IN THE
SOME SPECIFIED ACTIVITY
REGION WHERE THIS
POINTS OR REWARDS FOR REFERRALS ATTRIBUTE IS APPEALING
65%
TIERED PROGRAMS WITH EXCLUSIVE SOUTH AFRICA 78%
REWARDS FOR CUSTOMERS IN A PARTICULAR PAKISTAN 77%
58% UNITED ARAB EMIRATES 72%
LEVEL OR STATUS
EGYPT 68%
SAUDI ARABIA 67%
TECHNOLOGY MOROCCO 61%

TOP COUNTRIES IN THE


INTEGRATION WITH MOBILE PAYMENT SYSTEM 66% REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR SHARING PRODUCTS 61% SOUTH AFRICA 71%
AND PAGES ON SOCIAL NETWORKS PAKISTAN 69%
SAUDI ARABIA 67%
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 58% EGYPT 65%
UNITED ARAB EMIRATES 63%
INTEGRATION WITH THIRD-PARTY APPS THAT MOROCCO 56%
48%
CONSOLIDATE LOYALTY PROGRAM INFORMATION

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 27


L ATIN AMERICA:
ROOM FOR
LOYALT Y-PROGRAM
GROWTH
Latin America has the lowest self-reported loyalty-program participation
rates in the survey. Less than half of Latin American online respondents
(44%) say they belong to one or more loyalty programs. Participation
is highest in Brazil (53%) and lowest in Argentina (32%), Mexico (32%)
and Venezuela (33%). The lower incidence is due in part to the strength
of traditional trade in the region, which accounts for more than half of
retail sales. Loyalty programs are most common in large-format grocery
stores (hyper- and supermarkets) and department stores. Stand-alone
retailer-specific programs are common, while multiformat retailers allow
shoppers to collect and redeem points in any of their formats. Still other
retailers participate in coalition loyalty programs that span multiple
brands.

The main retailers in every country have a loyalty program, but there
is room for significant growth in the region, said Giovanna Marquez,
Retail Analytics leader, Nielsen Latin America. More and more retailers
are building loyalty programs, and some are integrating payment
systems into their loyalty programs with their own credit cards, giving
members the ability to earn additional points and receive special offers
when they use the retailers card.

The most common way loyalty-program participants indicate theyre


members is by entering information or logging into an account on a
retailer website, cited by 42% of Latin American respondents. The one
exception is Mexico, where the most common method is scanning a
card in a store. Scanning a cardcited by 34% of Latin American loyalty-
program members, well below the global average of 53%is the second
most common method in the region. About three in 10 respondents say
they look up their account by providing a telephone number or email
address at the point of sale (29%) or use a retailers mobile app (28%).
The use of third-party apps and mobile wallets to store loyalty-program
information is below the global average in nearly every country in the
region, with particularly low use for both methods in Argentina (10%
and 8%, respectively). However, the use of mobile wallets exceeds the
global average in Venezuela (25%).

28 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


SIGNIFICANT ROOM FOR LOYALT Y PROGRAM GROWTH IN L ATIN AMERICA

HOW DO YOU INDICATE THAT YOURE A LOYALTY-PROGRAM MEMBER?

REGIONAL AVERAGE

Look up account by providing


phone number, email Enter information or
Scan card in store address or other personal log into account on
information in store retailer website
OLDER METHODS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Mexico Chile Argentina


Brazil Venezuela Venezuela
Argentina Peru Brazil
Colombia Colombia Colombia
Peru Brazil Chile
Chile Argentina Peru
Venezuela Mexico Mexico
Global Average Global Average Global Average
34% 29% 42%

Enter and store loyalty program


information in a third-party Enter and store loyalty
Use retailer's mobile app app that allows me to store program information
multiple reward cards in one place into digital payment system
NEWER METHODS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Peru Venezuela Venezuela


Mexico Brazil Brazil
Venezuela Colombia Peru
Brazil Mexico Chile
Chile Peru Mexico
Colombia Argentina Colombia
Argentina Chile Argentina
Global Average Global Average Global Average

28% 14% 16%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 29


While use of third-party apps and mobile wallets to indicate loyalty-
program membership is currently below the global average in the region,
these tools will likely be very important in driving loyalty-program growth in
the future. Indeed, interest in these features in Latin America is among the
highest in the study. Technology-based features are particularly appealing
in Venezuela, Mexico and Brazil. Eighty-four percent of Venezuelan loyalty-
program participants say mobile-payment integration is somewhat or
very appealing, and 76% of Mexican and Brazilian respondents and 73%
of Colombian respondents rate it as appealing. These same countries
also stand out with respect to store-specific mobile apps. Three-quarters
of Venezuelan (75%) and 69% of Mexican and Brazilian loyalty-program
members rate these apps as appealing. In addition, six in 10 Brazilian,
Mexican and Venezuelan respondents (60%, 59% and 59%, respectively)
say integration with third-party apps that consolidate loyalty-program
information is appealing.

30 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


A COMBINATION OF LOYALT Y-PROGRAM FEATURES
IS APPEALING IN L ATIN AMERICA

PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY
TOP COUNTRIES IN THE
REGION WHERE THIS
POINTS OR REWARDS FOR PURCHASES MADE IN 86% ATTRIBUTE IS APPEALING
STORE, ON A WEBSITE OR ON A MOBILE DEVICE
MEXICO 90%
THE ABILITY TO CHOOSE AMONG 86% CHILE 87%
SEVERAL TYPES OF REWARDS VENEZUEL A 87%
BRAZIL 86%
COLOMBIA 84%
ARGENTINA 82%
PERSONALIZATION PERU 80%

TOP COUNTRIES IN THE


PERSONALIZED DISCOUNTS 85% REGION WHERE THIS
OR PROMOTIONAL OFFERINGS
ATTRIBUTE IS APPEALING
PERSONALIZED PRODUCT OR SERVICE 68% BRAZIL 86%
RECOMMENDATIONS COLOMBIA 84%
MEXICO 84%
VENEZUEL A 84%
BONUSES/STATUS PERU 84%
CHILE 82%
ARGENTINA 81%

OPPORTUNITIES TO EARN BONUSES BY DOING


84% TOP COUNTRIES IN THE
SOME SPECIFIED ACTIVITY
REGION WHERE THIS
POINTS OR REWARDS FOR REFERRALS 80% ATTRIBUTE IS APPEALING
TIERED PROGRAMS WITH EXCLUSIVE VENEZUEL A 90%
REWARDS FOR CUSTOMERS IN A PARTICULAR BRAZIL 86%
63% COLOMBIA 86%
LEVEL OR STATUS
MEXICO 85%
PERU 81%
CHILE 78%
TECHNOLOGY ARGENTINA 67%

INTEGRATION WITH MOBILE PAYMENT SYSTEM 75% TOP COUNTRIES IN THE


REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR SHARING PRODUCTS 73%
AND PAGES ON SOCIAL NETWORKS VENEZUEL A 84%
MEXICO 76%
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 66% BRAZIL 76%
PERU 75%
COLOMBIA 73%
INTEGRATION WITH THIRD-PARTY APPS THAT
54% CHILE 69%
CONSOLIDATE LOYALTY PROGRAM INFORMATION ARGENTINA 62%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 31


Latin American retailers offer a variety of rewards, from earning
points that can be redeemed or used as money to special prices and
discount days for loyalty-program members. Some, especially high-end
retailers, are also offering non-monetary incentives in addition to the
typical points program. So which rewards are most highly valued by
consumers?

As in every other region, the favorites are rebates or cash back (48%)

4 IN 10
and product discounts (47%). Rebates or cash back are particularly well
received in Colombia (56%) and Mexico (53%), but product discounts
are less prized in Mexico (40%) than in the region as a whole. Four in 10
loyalty-program participants in Latin America (40%) say free products LOYALT Y-PROGRAM
are among the top three benefits, the highest percentage globally, but
free products are less highly valued in Venezuela (27%) than elsewhere
PARTICIPANTS IN
in the region. Just over one-third of Latin American respondents (34%) L ATIN AMERICA SAY
say free shipping is among their three most valued benefits, with the
highest percentages in Brazil (39%) and Chile (37%). FREE PRODUCTS ARE
AMONG THEIR MOST
A few non-monetary rewards are valued more highly in selected markets
than in the region as a whole. Roughly three in 10 loyalty-program VALUED BENEFITS, THE
participants in Mexico (32%), Chile (29%), Venezuela (29%) and Peru
HIGHEST PERCENTAGE
(28%) say exclusive access to sales or merchandise is among the most-
valued benefits. In addition, recognition as a valued customer can go a GLOBALLY.
long way in Venezuela, where 24% of respondents say its among their
top three benefits, the second-highest percentage globally. Finally, 14%
of Brazilian respondents say charitable donations are among their most-
valued benefits, double the global average (7%).

32 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


MONETARY REWARDS ARE HIGHLY VALUED IN L ATIN AMERICA

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MONETARY NON-MONETARY

TOP COUNTRIES FOR TOP COUNTRIES FOR


SELECTED MONETARY SELECTED NON-
REBATES OR
CASH BACK
48% MOTIVATORS MONETARY MOTIVATORS

REBATES OR FREQUENT
CASH BACK FLYER POINTS
PRODUCT
DISCOUNTS
47%
ARGENTINA 24%
COLOMBIA 56%
BRAZIL 24%
MEXICO 53%
PERU 20%
FREE ARGENTINA 49%
PRODUCTS
40% CHILE 48%
CHILE 19%
COLOMBIA 17%
PERU 47%
VENEZUEL A 17%
BRAZIL 45%
MEXICO 15%
VENEZUEL A 41%
FREE SHIPPING 34% EXCLUSIVE ACCESS
PRODUCT TO SALES OR
DISCOUNTS MERCHANDISE
FREQUENT
FLYER POINTS 21% ARGENTINA 51%
MEXICO 32%
CHILE 29%
BRAZIL 49%
VENEZUEL A 29%
VENEZUEL A 49%
EXCLUSIVE COLOMBIA 47%
PERU 28%
COLOMBIA 26%
ACCESS TO
SALES OR
18% CHILE 47%
PERU 44%
ARGENTINA 21%
BRAZIL 8%
MEXICO 40%
MERCHANDISE
FREE CHARITABLE
CHARITABLE
10% PRODUCTS DONATION
DONATION
ARGENTINA 46% BRAZIL 14%
RECOGNITION BRAZIL 41%
AS A VALUED 9% COLOMBIA 41%
VENEZUEL A 11%
MEXICO 9%
CUSTOMER MEXICO 41% ARGENTINA 7%
CHILE 39% COLOMBIA 6%
PERU 35% PERU 5%
DISCOUNTED VENEZUEL A 27%
% 8% CHILE 4%
SHIPPING
FREE RECOGNITION
HIGHER SHIPPING AS A VALUED
PRIORITY 7% CUSTOMER
SERVICE BRAZIL 39% VENEZUEL A 24%
CHILE 37% PERU 15%
PERSONALIZED VENEZUEL A 31% COLOMBIA 11%
PRODUCTS 7% MEXICO 30% ARGENTINA 10%
ARGENTINA 28% CHILE 9%
OR SERVICE
PERU 28% BRAZIL 7%
EXPERIENCES COLOMBIA 26% MEXICO 7%

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 33


NORTH AMERICA:
AWASH IN LOYALT Y
PROGRAMS
North America has had loyalty programs across retail for decades, so it
should come as no surprise that the region has the highest self-reported
rates of program participation in the study. More than eight in 10 Canadian
and U.S. respondents (85% and 84%, respectively) say they belong to one
or more retail loyalty programs.

As weve seen in other mature markets, scanning a card in store is by


far the most common way shoppers indicate they are loyalty-program
members, though this method is more common in Canada (79%) than
the U.S. (62%). U.S. members are more likely than their Canadian
counterparts to look up their account by providing their phone number or
email address in store (34% versus 19%) or by logging into their account
online (34% versus 26%). In both countries, respondents indicate low use
of retailer or third-party mobile apps and mobile wallets.

34 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


OLDER METHODS DOMINATE IN NORTH AMERICA

HOW DO YOU INDICATE THAT YOURE A LOYALTY-PROGRAM MEMBER?

REGIONAL AVERAGE

Look up account by providing


Enter information or
OLDER METHODS

phone number, email


Scan card in store address or other personal log into account on
information in store retailer website

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Canada United States United States

United States Canada Canada

Global Average Global Average Global Average

64% 32% 33%


NEWER METHODS

Enter and store loyalty program


information in a third-party Enter and store loyalty
Use retailer's mobile app app that allows me to store program information
multiple reward cards in one place into digital payment system

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

United States United States United States

Canada Canada Canada


Global Average Global Average Global Average

23% 17% 13%

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

Copyright 2016 The Nielsen Company 35


MONETARY PERKS ARE STRONGLY PREFERRED IN NORTH AMERICA

PERCENTAGE WHO SAY BENEFIT IS AMONG THEIR THREE MOST-VALUED REWARDS

MONETARY NON-MONETARY

REBATES OR
CASH BACK 49%
TOP COUNTRIES FOR TOP COUNTRIES FOR
SELECTED MONETARY SELECTED NON-
PRODUCT
DISCOUNTS
46% MOTIVATORS MONETARY MOTIVATORS

FREE 35% REBATES OR


CASH BACK
FREQUENT
PRODUCTS FLYER POINTS

CANADA 55% CANADA 22%


FREE SHIPPING 35% UNITED STATES 48% UNITED STATES 20%

FREQUENT PRODUCT EXCLUSIVE ACCESS


FLYER POINTS
20% DISCOUNTS TO SALES OR
MERCHANDISE

EXCLUSIVE CANADA 47% UNITED STATES 16%


ACCESS TO 16% UNITED STATES 46% CANADA 12%

SALES OR
MERCHANDISE
FREE RECOGNITION
% DISCOUNTED 13% PRODUCTS AS A VALUED
SHIPPING CUSTOMER

CANADA 54% UNITED STATES 9%


RECOGNITION UNITED STATES 32% CANADA 6%
AS A VALUED 9%
CUSTOMER

HIGHER FREE HIGHER PRIORITY


PRIORITY 8% SHIPPING SERVICE
SERVICE
UNITED STATES 37% UNITED STATES 9%
CANADA 21% CANADA 2%
CHARITABLE 5%
DONATION

PERSONALIZED
PRODUCTS
OR SERVICE
4%
EXPERIENCES

Base: All respondents who are members of retail loyalty programs


Note: Respondents could select top three benefits
Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

36 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


Rebates or cash back are the most-valued loyalty-program reward in
both Canada and the U.S. (55% and 48%, respectively). Free products
are a close second in Canada (54%), while product discounts take
second place in the U.S. (46%). U.S. members also value free shipping
more than their Canadian counterparts (37% versus 21%, respectively).

Flexible rewards and the ability to receive points across channels are
widely appealing in both the U.S. and Canada. Roughly eight in 10 U.S.
and Canadian respondents identify each of these benefits as somewhat
or very appealing: 82% and 78%, respectively, say so about the ability
to choose among several types of rewards, and 81% and 78% say so
about points awarded for purchases regardless of where they were
made. Personalized discounts or promotional offerings based on past
purchasing also are appealing in both countries (76% in the U.S. and
70% in Canada).

Mobile features and social-media integration have narrower appeal in


North America. However, theyre rated more favorably in the U.S. than
in Canada. Roughly half of loyalty-program participants in the U.S. and
four in 10 in Canada say a store-specific mobile app (47% and 38%,
respectively) or integration with a mobile payment system (49% and
39%, respectively) is appealing. Roughly four in 10 U.S. respondents
(38%) and three in 10 Canadian respondents (28%) say integration
with third-party apps that consolidate loyalty-program information is
appealing. While mobile features may have somewhat limited appeal
currently, its likely that theyll dramatically shape the loyalty programs of
the future.

The retail loyalty programs of the future will be precise, personal,


and geared to what consumers really want, said Russell Mackey, vice
president, Retail Relations, Nielsen Catalina Solutions. We think about
loyalty programs as personalized because they appear to be relevant
to the shopper, but many retailers havent even scratched the surface
when it comes to realizing their full potential. Big data (in conjunction
with technology) and various relationships and collaborations that allow
retailers to offer individualized deals based on a customers buying
habits and purchase history will enable loyalty programs that are highly
tailored to individual shoppers.

Copyright 2016 The Nielsen Company 37


NORTH AMERICAN LOYALT Y-PROGRAM MEMBERS CRAVE FLEXIBILIT Y

PERCENTAGE WHO RATE THE LOYALTY PROGRAM FEATURE VERY OR SOMEWHAT APPEALING

FLEXIBILITY

TOP COUNTRIES IN THE


THE ABILITY TO CHOOSE AMONG 82%
SEVERAL TYPES OF REWARDS REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR PURCHASES MADE IN 81%
STORE, ON A WEBSITE OR ON A MOBILE DEVICE 81% UNITED STATES 82%
CANADA 78%

PERSONALIZATION

PERSONALIZED DISCOUNTS OR 75% TOP COUNTRIES IN THE


PROMOTIONAL OFFERINGS REGION WHERE THIS
ATTRIBUTE IS APPEALING
PERSONALIZED PRODUCT OR SERVICE 53%
RECOMMENDATIONS UNITED STATES 76%
CANADA 70%

BONUSES/STATUS

OPPORTUNITIES TO EARN BONUSES BY DOING SOME 66% TOP COUNTRIES IN THE


SPECIFIED ACTIVITY REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR REFERRALS 56%
UNITED STATES 66%
TIERED PROGRAMS WITH EXCLUSIVE REWARDS FOR CANADA 60%
CUSTOMERS IN A PARTICULAR LEVEL OR STATUS
51%

TECHNOLOGY

TOP COUNTRIES IN THE


INTEGRATION WITH MOBILE PAYMENT SYSTEM 48% REGION WHERE THIS
ATTRIBUTE IS APPEALING
POINTS OR REWARDS FOR SHARING PRODUCTS 46%
AND PAGES ON SOCIAL NETWORKS UNITED STATES 49%
CANADA 39%
STORE-SPECIFIC LOYALTY PROGRAM MOBILE APP 46%

INTEGRATION WITH THIRD-PARTY APPS THAT 37%


CONSOLIDATE LOYALTY PROGRAM INFORMATION

Base: All respondents who are members of retail loyalty programs


Source: The Nielsen Global Retail Loyalty-Sentiment Survey, Q1 2016

38 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


STRATEGIES FOR
SUCCESS: DATA
IS AT THE HEART
OF ANY WINNING
LOYALT Y PROGRAM
The 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.

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 integrationcombining 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 influenced, 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.

Copyright 2016 The Nielsen Company 39


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.

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 isnt 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.

40 GLOBAL RETAIL LOYALTY SENTIMENT REPORT


COUNTRIES IN THE GLOBAL SURVEY

ASIA-PACIFIC EUROPE AFRICA/MIDDLE EAST

INTERNET INTERNET INTERNET


MARKET MARKET MARKET
PENETRATION PENETRATION PENETRATION

Australia 93% Austria 83% Egypt 37%


Belarus 59%
China 52% Morocco 61%
Belgium 85%
Hong Kong 80% Bulgaria 57% Pakistan 18%

India 37% Croatia 75% Saudi Arabia 65%


Czech Republic 80%
Indonesia 34% South Africa 49%
Denmark 96%
Japan 91% Estonia 84% United Arab
92%
Emirates
Malaysia 68% Finland 94%
France 84%
New Zealand 94% NORTH AMERICA
Germany 88%
Philippines 53% Greece 63% INTERNET
MARKET
PENETRATION
Singapore 81% Hungary 76%
Ireland 83% Canada 93%
South Korea 92%
Israel 73%
United States 87%
Taiwan 84% Italy 62%

Thailand 60% Kazakhstan 54% Source: Miniwatts Marketing, Internet World Stats,
Latvia 82% June 30, 2016 (Europe is updated through Nov. 30,
Vietnam 52% 2015), www.internetworldstats.com
Lithuania 82%
Netherlands 96%
L ATIN AMERICA
Norway 96%
INTERNET
MARKET Poland 68%
PENETRATION
Portugal 68%
Argentina 79% Romania 56%

Brazil 68% Russia 71%


Serbia 66%
Chile 80%
Slovakia 83%
Colombia 59% Slovenia 73%

Mexico 56% Spain 77%


Sweden 95%
Peru 59%
Switzerland 87%
Venezuela 62% Turkey 60%
United Kingdom 92%
Ukraine 43%

Copyright 2016 The Nielsen Company 41


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.

ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management
company that provides a comprehensive understanding of what consumers
watch and buy. Nielsens 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 industrys 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 worlds 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. 16/10549

42 GLOBAL RETAIL LOYALTY SENTIMENT REPORT