COLLOQUY's 2011 Cross-Cultural Loyalty Study Uncovers Global Perceptions
on Loyalty and Implications for Spending
TORONTO, Nov. 2, 2011 /CNW/ - Ninety per cent of Chinese consumers trust
foreign brands over domestic, and shoppers in Brazil, India and China
say they are significantly more likely than Americans and Canadians to
use a credit card for something they can't afford. The results of a
one-of-a kind global study on shopping behaviour and consumer loyalty
also found Brazilians are far more concerned than Americans and
Canadians about protecting personal information, while Chinese
consumers are far less concerned than their North American
These insights are among many contained the "2011 COLLOQUY
Cross-Cultural Loyalty Study," which spans six global economies.
Sponsored by Epsilon and LoyaltyOne, this study provides a timely and
comprehensive window into current consumer attitudes toward loyalty
amidst continued global economic turmoil. COLLOQUY, a LoyaltyOne
company, is a leading provider of loyalty marketing publishing,
research and education. Epsilon is a global marketing and analytics
leader focused on helping brands deepen their relationships with
Signs of significant growth potential for North American businesses
aiming to enter rapidly developing economies were found along with the
critical importance of businesses "localizing" their consumer marketing
approaches in these markets. The study revealed stark contrasts in
optimism between three developed nations—the U.S., Canada and
Australia—and three emerging markets—India, China and Brazil. These
contrasts underpin fundamental differences in sentiment in developed
and emerging markets during a time when corporations are focused on
strategies for stability and growth. The message is clear: even in
markets with pent-up demand, consumers in emerging markets respond
differently to new brands and product opportunities than do their
counterparts in developed nations.
The full research findings will be released by COLLOQUY in a three-part
white paper series. The first, entitled "The Global Loyalty Compass," is now available free of charge at http://www.colloquy.com/crosscultural. It provides a worldwide overview, pointing to leading economic
indicators and important behavioural nuances by market.
The effectiveness and relevance of brand communications and marketing is
analyzed across distinct consumer segments. The U.S., Canada and
Australia data spans the general population and includes additional
analysis in the affluent, young adult and senior sectors of the United
States and in Canada. The emerging market data (India, China and
Brazil) includes attitudes and perceptions from consumers across three
different socioeconomic classes.
Three T's—Tired, Turned Off, and Tuned Out—are used to characterize
consumers in developed markets, where there is strong evidence of a new
set of much higher expectations for innovation and reinvention among
Conversely, the emerging market consumer sentiments can be summed up as
Three E's—Energy, Engagement, and Enthusiasm. Yet, despite this
prevailing commonality in optimism, marked differences in perceptions
around loyalty and shopping-related behaviours were detected.
According to LoyaltyOne President Bryan Pearson, whose book, The Loyalty Leap: Turning Customer Information into Customer Intimacy, is due out in May 2012: "Consumer sentiment is incredibly important
bellwether. While there are many imminent concerns for business on the
horizon, corporations, especially those that are banking on loyalty for
growth, would be wise to heed two strong prevailing themes: Success in
North America requires a rewrite of the rules of engagement, and
emerging markets will not be won with a one-size-fits-all mentality."
Developed and Emerging Market Comparison Highlights:
Foreign vs. domestic brands: Shoppers in emerging nations are more welcoming of foreign brands and in
some cases are more trusting of foreign/global brands. In China, nine
out of 10 consumers say that global brands are more trustworthy than
domestic brands. Chinese consumers are six times more likely than
Americans to agree with the statement that competition from foreign
companies is a good thing.
Credit card usage: China, Brazil and India consumers are five times more likely than U.S.
and Canadian consumers to say they will use credit cards for "things
you can't afford now."
Privacy: 68% of Brazilian consumers are concerned about protecting their
personal information, compared with 50% of consumers in the United
States and Canada. This far outstrips China, where just 33% of
respondents said they are concerned.
Brand Loyalty Defined: Consumers almost universally define brand loyalty as telling friends or
family to shop at a particular store, except in China, where loyalty is
defined as shopping with a specific company for more than three years.
"We've entered into a period of great change and complexity, which is
driving a critical need for clarity and direction. This study is an
essential navigational beacon regardless of whether you're leading the
charge for growth on foreign soil or in a market where growth is
increasingly hard to mine," says Kelly Hlavinka, Managing Partner of
In addition to the macro comparisons between mature and emerging
economies, the "2011 COLLOQUY Cross-Cultural Loyalty Study" explores
in-depth sentiments of each of the cohorts across the markets studied.
A fulsome analysis of the developed markets will be the subject of the
second of the three white papers, due out later in November. It will
provide a closer look at the effects of the confidence crisis in the
In this installment, marketers in North America will discover several
Only 12% of Americans and 10% of Canadians strongly agree that it pays
to be loyal to your favorite brands.
Data compared with earlier studies will show that engagement with
marketing communications is trending down in several channels including
"There are some incredibly compelling and eye-opening findings in our
research including what's on the horizon for customer loyalty
strategies," adds Hlavinka. "I think chief marketing officers are going
to be surprised with the trends and needs that are reshaping customer
expectations and loyalty globally. There is vast loyalty opportunity to
evolve how we engage customers in the developed markets. We've also uncovered a
strong desire for special services & privileges in the emerging
markets. Marketers would be well served to understand these trends and
deploy strategies to capitalize on them."
The third white paper, slated for release in February 2012, will paint
some stark on-the-ground differences among the same cohorts across the
three emerging markets, underscoring disparities in cultural and
behavioural characteristics, despite a shared optimism.
According to Hlavinka, "The findings from the emerging markets are
telling us that even where there is pent-up demand, setting up shop
doesn't guarantee you'll end up in the winner's circle. If, on the
other hand, you parlay core insights into a long-term engagement
strategy from the outset, the potential for ongoing return on
investment increases exponentially."
LoyaltyOne is a global provider of loyalty strategy and programs,
customer analytics and relationship marketing services. Its roster of
clients includes leading businesses and brands in multiple sectors such
as retail, banking, manufacturing, government, natural resources and
utilities. LoyaltyOne businesses include Canada's AIR MILES Reward
Program - North America's premiere coalition loyalty program, COLLOQUY,
Precima, LoyaltyOne Consulting and Direct Antidote. LoyaltyOne's
industry-leading Associates, practical experience and proven
capabilities set the benchmark of thought leadership in the loyalty
marketplace. Toronto-based LoyaltyOne is an Alliance Data company. For
more than 30 years, Alliance Data has helped its clients build more
profitable, more loyal relationships with their customers. For more
information, visit www.loyalty.com.
COLLOQUY comprises a collection of publishing, education and research
resources devoted to the global loyalty-marketing industry. Owned by
LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since
1990 with over 40,000 global subscribers to its magazine and www.colloquy.com the most comprehensive loyalty web site in the world. COLLOQUY's
research division develops research studies and white papers including
industry-specific reports, sizing studies and insights into the drivers
of consumer behaviour. COLLOQUY also provides educational services
through workshops, webinars and speeches at events throughout the world
and is a loyalty-marketing partner of both the Direct Marketing
Association and the Canadian Marketing Association and a content
provider to the American Marketing Association. COLLOQUY also operates
the COLLOQUY Network, a global consortium of practitioners certified in
COLLOQUY's proprietary methodology. COLLOQUY magazine subscriptions
are available at no cost to qualified persons at www.colloquy.com or by calling 513.248.9184.
Epsilon is the industry's leading marketing services firm, with a broad
array of data-driven, multi-channel marketing solutions that leverage
consumer insight to help brands deepen their relationships with
customers. Services include strategic consulting, acquisition and
customer database technologies, loyalty management, proprietary data,
predictive modeling and a full range of direct and digital agency
services, including creative, interactive web design, email deployment,
search engine optimization and direct mail production. In addition,
Epsilon is the world's largest permission-based email marketer. Epsilon
is an Alliance Data company. For more information, visit www.epsilon.com or call 1-800-309-0505.
For further information:
Sebastian Gatica or Amy Greenshields, Environics