Loyalty Marketing: Attracting and Retaining Customers in Difficult Times
Euromonitor International's Loyalty Marketing: Attracting and Retaining Customers in Difficult Times Strategy Briefings is a series of reports that alert you to global trends predicted to influence consumer markets. They offer insight to changing market conditions and the opportunities and challenges companies need to consider to maintain a competitive advantage
Chapters: 8 | Tables: 22 | Publication date: May 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Regional coverage
Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East
Table of contents
EXECUTIVE SUMMARY
OVERVIEW
Summary 1 Types of Loyalty Programme
MARKET DRIVERS
Summary 2 Factors Affecting Loyalty Marketing 2008
KEY TRENDS
OUTLOOK
INTRODUCTION
DEFINITIONS
Retailer reward/frequent shopper schemes
Frequent flyer/frequent guest schemes
Credit card/store card reward programmes
Multi-partner programmes
Couponing
Loyalty programme managers
HISTORY OF LOYALTY MARKETING
MARKET DRIVERS
ECONOMIC FACTORS
The worsening economy
Table 1 GDP Growth in Major Markets 2003-2008
Consumer reaction to recession
RETAIL TRENDS
Changing distribution patterns
Retail sales growth
Table 2 Global Retail Sales 2003-2008
Chart 1 Largest Retail Markets 2008
Retailer Consolidation
Chart 2 Grocery Retailer Concentration in Developed Markets 2008
Summary 3 World’s Leading Retailers 2008
Growth formats
Chart 3 Global Penetration of Selected Retail Formats 2003/2008
The growing emphasis on value
TRAVEL TRENDS
Customer loyalty a growing concern
Table 3 Airline Industry Challenges 2007
Growth in the tourism industry
Table 4 Global Tourism Arrivals 2003-2008
Industry Consolidation
Summary 4 Selected Major Travel and Tourism Companies 2008
THE GROWING IMPORTANCE OF DATA MINING
Data collection becomes more sophisticated
Data for dollars
Consumer backlash
CHANGING LEGISLATION
Abolition of German discount laws
Data protection laws
New banking regulations allow for co-branded cards
INCREASED INTERNET USAGE
Broadband becomes universal
Internet loses US-bias
Consumer advocacy
Growth of e-commerce
Table 5 Internet Shopping as a % Total Retail Sales by Market 2003/2008
E-travel still on the up
Consumers take control
GROWING USE OF FINANCIAL CARDS
Credit culture lives on
Combining loyalty with credit
China enjoys credit boom
Table 6 Credit and Store Cards in Circulation 2003-2008
Store cards lose popularity
Chart 4 Top Ten Markets for Store Cards 2008
THE LOYALTY MARKET
MEASURING SUCCESS
Return on Investment
Table 7 USA: Frequent Shopper Programme Success Indicators 2008
Share of wallet
Consumer participation rates
Company participation rates
Chart 5 UK: Penetration of Loyalty Schemes 2003-2008
Chart 6 UK: Penetration of Loyalty Schemes by Sector 2008
LOYALTY AGENCY DEVELOPMENTS
In-house versus outsourced programmes
Consolidation
Spin-offs by airlines
KEY TRENDS IN THE RETAIL SECTOR
OVERVIEW
The need to encourage loyalty
Loyalty Versus Equity
Types of message
MAJOR LOYALTY PROGRAMMES
Tesco sets the example
Carrefour leads French market
Drugstores fight back
International versus local programmes
Fee versus no fee
Summary 5 Selected Retailer Loyalty Programmes in Major Markets 2008
COALITION SCHEMES
Retailer-based programmes
Lifestage/Lifestyle schemes
Travel-based coalition programmes
Summary 6 Selected Coalition Loyalty Programmes in Major Markets 2008
CREDIT CARD REWARD PROGRAMMES
Retailers diversify into banking
New regulations allow for co-branding in France
Store cards remain popular in the US
Summary 7 Selected Store and Credit Card Loyalty Programmes 2008
GROWTH IN EMERGING MARKETS
Coalition model dominates
On-line coalition programmes expand
Chinese prefer discount cards
Loyalty programmes enter Russia
Summary 8 Selected Major Coalition Loyalty Programmes in Emerging Markets 2008
USE OF DATA
Types of information collected
Table 8 US: Information Collected Through Frequent Shopper Programmes 2008
Segmentation and targeting
Table 9 US: Ways of Leveraging Collected Data 2008
Promoting private label
Tailoring rewards
Table 10 US: Frequent Shopper Programme Benefits 2008
LOYALTY AND THE ENVIRONMENT
TECHNOLOGY IN LOYALTY MARKETING
More accurate targeting
Electronic communication
Tracking in-store movements
Integration of loyalty programmes
Biometrics
COUPONING
Coupons welcome in recession
Internet coupons take off
Mobile coupons offer convenience and ecological benefits
Couponing hits Facebook
KEY TRENDS IN THE TRAVEL SECTOR
OVERVIEW
Travellers become more fickle
FFP membership soars
The value of air miles
Increased collaboration with partners
COMPANY ACTIVITY
FFPs operate largest programmes
JAL enjoys success in Japan
BA focuses on most lucrative customers
Low-cost carriers
IHG leads in frequent guest programmes
Marriott Rewards wins on longevity
More hotel groups abolish blackout dates
Accor launches A Club
On-line travel agents join the fray
Summary 9 Major Travel Company Loyalty Programmes 2008
CREDIT CARD LOYALTY PROGRAMMES
Banks compete with own deals
Co-branded cards big in Japan
US airlines go head to head
Miles & More goes international
Hotel groups target premium users
On-line travel agents offer more flexible options
Summary 10 Selected Credit Card/Travel Partnerships 2008
REWARD DIFFERENTIATION
Experiential rewards
Carbon offsetting
Travel currency
Segmentation
INTERNATIONALISATION
Hotel groups develop global programmes
IHG adapts to local preferences
TRENDS IN OTHER SECTORS
ENTERTAINMENT
Casinos
Cinemas
FUEL
FUTURE OUTLOOK
TRENDS TO WATCH
Loyalty programmes will become key focus for differentiation
Economic prospects darken
Chart 7 Forecast Global GDP Growth 2008-2013
Changing consumer behaviour: frugality will become the norm
Loyalty versus discounting
The future impact of technology
Coupons to enter the digital age
Capturing Generation Y
Coalition programmes to develop further
Growth of co-branded credit cards
Table 11 Forecast Number of Personal Credit Cards and Store Cards in Circulation 2008-2013
Globalisation
RECOMMENDATIONS
Challenges ahead
Optimising access
Differentiating the offer
Summary 11 Key Success Factors in Loyalty Marketing