The opportunities for customer loyalty in emerging markets

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By: Wise Marketer Staff |

Posted on June 14, 2006

Building brand loyalty in emerging markets offers both challenges and opportunities that first-world loyalty models don't usually address, according to South African loyalty provider Achievement Awards Group, which is to hold its second annual loyalty summit to address this topic in Johannesburg in August.

Benchmarking against loyalty practices in the UK and the US is an interesting exercise but it is also far removed from local market realities in countries such as South Africa, and other emerging markets. The question Achievement Awards Group (AAG) will be addressing in August does not always have a straightforward answer: "What defines best�practice loyalty marketing in emerging markets?"

Redefining loyalty
With the running theme of "Redefining loyalty in emerging markets", the Loyalty Marketing Summit will draw experience and practical ideas from presentations by emerging market loyalty leaders, including:

  • Henry Winter, CEO for Smart Club Loyalty Management in China;
  • Praphul Misra, CEO for NetCarrots in India;
  • Roberto Chade, CEO for Dotz in Brazil;
  • Jeremy Sampson, CEO for Interbrand Sampson in South Africa;
  • Nyang Koon Seng, CEO for Customer Loyalty Solutions in Malaysia;
  • Refiloe Mataboge, Executive Director at Research Surveys in South Africa.

Among the key issues the summit has been designed to address this year are:

  • How emerging market technology impacts customer loyalty;
  • Why a one-size-fits-all loyalty programme doesn't work in an emerging market;
  • How to bust loyalty myths and educate emerging market clients;
  • How to grow value and measure results from loyalty initiatives;
  • How to recognise the changing profile of the South African middle class.

Growth opportunities
Deon Olivier, director of the loyalty business unit at AAG, is enthusiastic about the potential for continued developments in customer loyalty marketing techniques in developing markets. He asserts that local conditions are increasingly favourable for growth, and that South African consumers are becoming very "savvy" and are more and more interested in engaging in loyalty programme dialogue.

This view is confirmed by rising consumer interest in customer clubs in South Africa, as evidenced by a new report from local market research firm Razor's Edge Business Intelligence (see 13 Jun. 2006).

A matter of scale
According to Olivier, "We see South Africa as being poised for a loyalty explosion, but I accept that what we define as an explosion, a loyalty marketers in the US might see as just a small blip on the radar. So it might be valuable for us to hear about what's going on in other emerging markets, rather than benchmarking exclusively against the US and UK giants."

The summit will take place on 17th August 2006 at the Intercontinental Sandton Sun and Towers hotel in Johannesburg, South Africa. Registration is at 7.30am, and the summit runs from 8.25am to 4.30pm. For more event and registration details, contact Achievement Awards Group.

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