Key Insights:
Gap in Local Shopping: While a majority of consumers express support for local businesses, only 18% primarily shop at them.
Loyalty Program Opportunity: 57% of consumers desire access to local loyalty programs, presenting a significant opportunity for small and medium-sized businesses (SMBs).
Loyalty Program Challenges: Consumers are hesitant to join too many programs due to perceived lack of value, inconvenience of carrying cards/coupons, and limited use cases.
Regional Variations: Loyalty program usage varies across countries, with Australia and the UK leading and Brazil lagging due to limited availability.
Interest in Special Offers: Brazilian consumers show strong interest in loyalty programs and special offers, indicating a potential market for local retailers.
Developed Markets' Preferences: Consumers in the U.S., UK, and Australia, with existing access to loyalty programs, are interested in exploring more diverse rewards.
Importance of Local Shopping: Consumers globally recognize the importance of shopping locally for economic and community benefits.
Key Takeaway:
There is a significant opportunity for local businesses to capture consumer loyalty through well-designed and relevant loyalty programs. However, these programs need to offer genuine value and avoid creating friction for users.
Trend:
The trend towards supporting local businesses is growing, but there is a gap between intention and action. Loyalty programs can bridge this gap by incentivizing local shopping and fostering customer relationships.
Consumers Addressed:
The report addresses consumers globally, with a focus on their attitudes towards local shopping and loyalty programs. It highlights regional variations in loyalty program usage and preferences.
Conclusions:
Local businesses need to invest in developing attractive and user-friendly loyalty programs to tap into the growing consumer interest in supporting local communities.
The success of these programs will depend on offering relevant rewards, avoiding friction, and addressing the specific needs and preferences of different consumer groups.
The global trend towards supporting local businesses presents a significant opportunity for SMBs to strengthen their customer base and contribute to local economies.
Implications for Brands:
Local businesses should prioritize creating or enhancing loyalty programs to attract and retain customers.
Brands need to understand the specific preferences of their target audience and tailor rewards accordingly.
Building trust and fostering community engagement are crucial for the success of local loyalty programs.
Implications for Society:
The growth of local loyalty programs can boost local economies, create job opportunities, and strengthen communities.
Promoting local shopping can lead to a more sustainable and resilient economy, reducing reliance on large corporations.
Encouraging consumers to support local businesses can foster a sense of connection and belonging within communities.
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