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Dear Retailers, Egyptians love loyalty programs

Even though loyalty programs have not reached their hype in Egypt yet, the majority is more likely to shop at retailers that offer such incentives.

92 percent of Egyptian respondents said they were more likely to shop at retailers that offer loyalty programs (marketing programs that reward members with purchase incentives), while only 36 percent said that loyalty programs were available where they shopped, according to a new study by Nielsen, a leading global provider of information and insights into what consumers watch and buy.

The Nielsen Global Survey of Loyalty Sentiment polled more than 29,000 Internet respondents in 58 countries to evaluate consumer views on loyalty levels across 16 categories including fast-moving consumer goods, technology products and retail establishments.

According to Nielsen’s survey, 35 percent of Egyptian respondents said getting a better price would encourage them to switch brands, service providers or retailers, followed by better quality (31%), a better service agreement (23%), better selection (6%) and better features (5%).

Nielsen information shows that thirty seven percent of Egyptian respondents claimed complete loyalty to mobile phone brands, personal computer brands (31%) and mobile service providers (28%), which constitutes the highest percentages reported across the 16 categories measured.

Egyptian respondents reported the low levels of loyalty to food and beverage categories measured and online retailers. Thirty-six percent of Egyptian consumers surveyed said they were not loyal and likely to switch brands in snacks, thirty- three in cereal categories and thirty percent in carbonated soft drink. Forty-two percent of Egyptian respondents said they were not loyal to online retailers while twenty-five percent are not loyal to supermarkets or retailers.

According to Nielsen’s survey, less than three-quarters (69%) of Egyptian respondents said that discounted or free products was the most valuable loyalty program benefit. Enhanced customer service and free shipping incentives were important to 60 percent and 47 percent of Egyptian respondents.

“In markets where loyalty programs are still developing, customers tend to be focused on copy-cat promotional offerings that don’t offer unique advantages,” said Tamer El Araby, Managing Director for Egypt and Levant, Nielsen. “However, as the consumers are becoming more complex, retailers and manufacturers need to work together to offer exclusive awards that cut through the clutter.”