Loyalty towards a brand is all what marketers demand from
the new age consumers. With them getting spoiled for choices every day,
dreadfully less are the chances of mastering the way to make that happen. But
consumers of MENA region think and act differently from the rest of the world
they have shown extreme devotion towards a brand making them the most trusty
brand shoppers.
According to Ernst & Young's 2012 MENA Customer
Barometer, MENA consumers are among the most brand loyal consumers in the
world. 25% of respondents in the UK and the US stated that brand influences
their purchasing decision compared to 29% in Saudi Arabia, 31% in the UAE, 33%
in Bahrain, 34% in Jordan and 35% in Oman.
The report also reveals that consumers are now harder to
define, understand, and please than ever before and that MENA brands are facing
challenges to adapt to 'Chameleon Consumers'.
Five broad trends emerged from the survey, covering ten
different products and services:
1. Traditional market segmentation no longer holds true. The
'chameleon' consumer has conflicting preferences and facets, which need to be
accommodated.
2. Brands are increasingly likely to influence purchasing
decisions within emerging markets, unlike the mature markets where lower
loyalty is challenging companies.
3. Personalized communication and service is a priority.
There are huge opportunities for organizations that can harness digital
consumers through closer 'community' vehicles, such as social media and other
digital channels.
4. Consumers are now equipped with all possible product,
price and stock information and can simply bypass retailers that don't engage
consumers with relevant information and a compelling purchase pitch.
5. These new empowered customers want a greater say in how
they experience service and to be active 'co-creators', not passive consumers.
Defying categorization: the chameleon consumer
Ross Maclean, Customer Advisory Leader, Ernst & Young
MENA, says: "The survey finds that in recent years, customer behavior has
changed beyond recognition. In becoming a 'chameleon', the consumer has
undergone a radical 'metamorphosis' and this change has significant
consequences for all customer-centric organizations."
The challenge of categorizing consumers is demonstrated by
differences in consumer behaviour between regions. The survey reveals, for
example in Jordan, 74% of consumers want to pay by cash, while in the UAE the
figure is just 39%. In Bahrain, 21% prefer to shop online, while in Lebanon and
Jordan the figure is half that, at 10%, and in Kuwait it is 12%. Adding to the
complexity is the very large number of transient expat workers in MENA
countries, all with different habits and preferences.
Brand loyalty - products commanding greater affinity
compared to services
Despite MENA's high numbers, the survey uncovers a regional
split in brand loyalty. In MENA and other emerging markets, brands are
increasingly likely to influence purchasing decisions, while brand loyalty is
on the wane in the West.
Within MENA, the areas where brand affinity is highest are
the more "product-driven" environments (food, clothing). Within the
typically more "service-driven" environments (banking and insurance),
emotional connection with brands is lagging. Consumers demonstrate an average
of just 54% loyalty level to these service-driven sectors, compared with 66% to
industries where the focus is more product-led.
"While brand loyalty in MENA is much stronger than in
other global geographies, there is still an anomaly between loyalty to products
and loyalty to services. This highlights the need for organizations to
recognize the importance of customer experience in driving customer
acquisition, growth and retention. Customer experience is the new brand."
says Ross.
Consumer communication gets personal
Customers have turned their backs on established media
channels and are electing their own spokespeople. The survey identifies a
divide between mature and less mature markets' perceptions of the value of
social media. When asked to rate the medium's worth as an objective tool for
finding and validating information, globally, consumers gave it an
unexceptional 5.4 out of 10; however, the more positive consumers of the MENA
region responded with 6.3, as did China.
Ross adds: "MENA consumers have a new voice, they are
amongst the most digitally engaged on the planet and their expectations are
higher than they have ever been. Through social media, blogs, brand communities
and other online forums, consumers are sharing their views, preferences, likes
and dislikes with anyone who cares to listen."
Knowing it all, having it all
The report reveals that the web has inverted the global
power relationship. It has given consumers the means to have it all their own
way. In the MENA region, 65% go online at least once during the shopping
process — above the global average of 62%, and above India (64%), though
slightly behind China (68%). Within the MENA region however, there are some
interesting country variations in willingness to shop online: in Jordan, 43%
buy predominantly in-store, while just 10% shop mainly online. However, in the
UAE, 38% say they shop mainly in-store and 21% online.
From consumer to co-creator
Consumers now want bespoke attention whenever they deal with
a product or service provider, all the way through the shopping experience —
from innovations they help shape, to immediate rewards for loyalty. Payment is
one area where consumers want it their way. According to the survey, 39% of
consumers globally prefer to pay by cash, whereas in MENA, 60% opt for cash,
much higher than the global average of 39%.
"The trends identified in our survey have urgent
implications for businesses in MENA. An understanding of these implications, supported
by the solid principles of effective marketing, will help organizations
navigate the new consumer environment. Engaging in dialogue with consumers,
making service personal and providing an end-to-end brand experience are
essential for the success of any business," concludes Ross.
No comments:
Post a Comment