Customer loyalty in Latin America is evolving amid the evolving consumer preferences and needs. Players must embrace regional macroeconomic, social and consumer specifics to be able to withstand the increasing competition. Embracing technological innovation and emotional loyalty will help drive customer retention.
This report comes in PPT.
Digitalisation is high in Latin America, especially amongst younger generations. Loyalty will need to meet these consumers online with a value proposition that highlights convenience, innovation, engagement and dialogue. Web 3.0 (ie intelligent assistants on webpages), the metaverse and tokens are examples of where loyalty is headed.
The largest retailers in Latin America are present across multiple channels and can satisfy multiple consumers’ needs simultaneously. These retailers often utilise the same loyalty programme in various countries, and most are basic, transactional and with low emotional connection or real customer engagement. Private label also offers a clear alternative to more expensive name brands meaning brand loyalty is not feasible for price-sensitive consumers.
Loyalty programmes are primarily transactional and based on discounts and cashback. Emotional engagement and personalisation (utilising the big data available on consumers) will be key attributes for differentiation as younger, more diverse generations come of age. Social or environmental causes will also allow loyalty to connect with consumer emotions.
Increasingly price-sensitive consumers are demanding more value for money options, as soon as possible. If loyalty does not mean immediate rewards, consumers will find little value in it and will look for another loyalty programme that offers them what they want.
Partnership can help on scalability and bring value to loyalty programmes that focus on one core business area. Small players can gain scalability by creating ecosystems through partnerships as well as by joining third party coalition programmes.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.See All of Our Definitions
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