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MANILA – November 12, 2013 – Filipino consumers show the most loyalty to their mobile phone brands and mobile service providers, a Nielsen survey revealed.
The Nielsen Global Survey of Loyalty Sentiment polled over 29,000 internet respondents across 58 countries, evaluating consumer views on loyalty levels across 16 categories including fast-moving consumer goods, technology products, and retail establishments.
Of the 16 categories, Filipino respondents showed the highest level of loyalty to mobile phone brands and mobile service providers, a sentiment shared with the rest of Southeast Asian respondents. Over-the-counter health and medical products, and personal computer products also secured high levels of loyalty from Filipino respondents. Conversely, alcoholic beverages were ranked by respondents in the region as the category to which they attributed the lowest level of loyalty, along with online retailers.
“Loyalty of consumers to mobile brands and mobile service providers presents clear opportunities to gain and keep the trust of customers. This signifies the importance of developing and nurturing long-term customer relationships,” stated Stuart Jamieson, managing director of Nielsen Philippines.
When it comes to switching brands, Filipino consumers prize quality the most, with 51 percent of Filipino respondents saying they would switch brands for a better quality product, more than for better pricing, better service agreement, better selection, or better features.
Other countries in the region saw price as the most powerful incentive to switch brands. Singaporean and Vietnamese consumers in particular showed the highest price sensitivity, with 52 percent of consumers in both markets indicating they would switch to an alternative brand if it offered a better price.
“Filipino consumers placed the highest premium on quality while the rest of the consumers in Southeast Asia also gave importance to quality—higher than the global average,” said Jamieson. “This emphasizes the shifting focus of consumers as incomes increase and their purchase drivers move away from price alone.”
Filipinos drawn to loyalty programs
The survey also revealed that most Filipino consumers are enticed by loyalty programs (marketing programs that reward members with purchase incentives), with 91 percent of respondents saying they preferred retailers that offered loyalty programs, the same number as in Malaysia and Singapore.
Respondents from Vietnam and Thailand proved to be most likely to be drawn to loyalty programs, with 94 percent and 92 percent respectively indicating that they would sooner shop at retailers that offer loyalty programs.
The survey also revealed the prevalence of loyalty programs in the Philippines, with 61 percent of Filipino respondents saying that loyalty programs were available in stores where they shopped. The number is slightly lower than that of Thailand and Vietnam where loyalty programs are most prevalent with 69 percent of respondents indicating the availability of the programs in their choice stores.
“Similar to the rest of Southeast Asia, retail loyalty programs are growing significantly in the Philippines in recent years, both in terms of availability and popularity. These programs are influencing consumers’ choice of store, with Filipino consumers saying that they more likely to be enticed by loyalty program offerings,” Jamieson explained. “Through these loyalty programs retailers can customize their offers to individual customer needs, thereby increasing the frequency of visits to their stores as well as the amount spent.”
At the same time, 85 percent of Filipino respondents saw the offer of discounted or free products as the most valuable loyalty program benefit, consistent with other Southeast Asia markets surveyed. Over half of Filipino respondents ranked enhanced customer service as the second most valuable program benefit, while Singapore and Vietnam respondents viewed exclusive deals as the second valuable benefit. Filipino respondents also valued free shipping as their top third most valuable loyalty benefit.
