Food Industry News

Buyers are on the map

The crisis is forcing buyers to look for new opportunities for savings. According to Nielsen, in Russia 76% of consumers will go to the retailer, whose loyalty program they are involved.

The research company Nielsen analyzed consumers' preferences regarding loyalty programs and found out that when choosing between the same 76 stores by the same criteria, the buyers will go to the retailer in whose loyalty program they participate. Director of Nielsen Russia for work with retailers Dmitry Shvetsov says that the development of loyalty programs and the personalization of customer experience have become a modern trend in Russian retail. This helps to increase the traffic and average check of the retailer and increases its weight in the structure of consumer spending. "Russian consumers like to participate in promotions and in the current economic conditions they are eagerly looking for beneficial offers, and participation in loyalty programs in many ways gives them such an opportunity," argues Dmitry Shvetsov.

According to Nielsen estimates, says "Kommersant", 52% of consumers in Russia own loyalty cards, respectively, 48% in these programs do not participate. This is one of the lowest rates of audience involvement in marketing cooperation with retailers. For comparison, participate 85% of consumers in the UK even more in the United States in loyalty programs - 89%. The average world figure is 66%.

More than half of consumers in Russia (57%) say they often visit and spend more in stores, whose client programs they participate, 35% are willing to spend a little more in them. The most valuable for consumers discounts on products (they prefer to 85%), goods in the gift note 35%, cashback (refund) - 30%. Exclusive access to the sale choose 27% of respondents.

Nielsen conducted a global study of consumer preferences with regard to loyalty programs retailers in March this year to more than 30 thousand. Online consumers in 63 countries. Russian offline retailers interviewed by "Kommersant", confirm this trend.

The representative of the Lenta network Anna Meleshina says that by the end of the third quarter of this year, the number of active cardholders of loyalty cards grew by 23% (year-on-year) and reached 9,8 million people. "About 93% of total sales in the third quarter of the year 2016 implemented using loyalty cards," - she says. In the "ABC of Taste" the current volume of active users with loyalty cards is about 900 thousand, said the network spokesman Andrei Golubkov. Prior to update loyalty program, which took place in April this year (it was introduced a bonus system in place of the discount), they were 384 thousand "Almost 91%" old "active clients connected to the bonus program, -. Says Mr. Golubkov.- Bonuses contribute to a return visit in the store, the discount does not work that way. "

The popularity of promotional campaigns among consumers began to rise because of the crisis. In the middle of the year 2016 retailers counted that almost a third of the proceeds of sale offer on the shares, and started to increase the number of loyal customers. In the first half of the goods on the shares accounted for almost half of the production of daily demand, and more than 40% of buyers purchase goods within the promotions, which initially did not even interested, Nielsen data showed.

According to Anna Meleshina, during the crisis consumers become sensitive to prices and focused on special promotions - sales are growing. Tikhon Smykov, CEO of Inventive Retail Group, says that during the crisis the company has reduced the flow of new customers, but the share of loyal customers in sales is growing. "If in 2013 year only half of purchases passed on loyalty cards, then in 2016 year this indicator exceeded 80%. The share of repeated purchases has doubled during this time, during the crisis years it is especially noticeable and helps us to level out the traffic drop that the entire retail market has faced, "he notes.

The vice-president of the Sela apparel network, Eduard Ostrobrod, agrees that attracting new customers is more expensive. “At the same time, regular customers generate up to 80% profit,” he adds. From January this year, Sela stores began to activate virtual bonus cards. According to Mr. Ostrobrod, if in January of this year card activations were 4% of the total number of purchases, by October they were 84%. “Loyal customers have an average check, which is up to 20% higher than the average,” says Sela's vice president.

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