Most consumers in Hong Kong do not expect anything in return for sharing their personal details with retailers, only 9 per cent reporting their shopping, payment and delivery preferences are remembered.
This was a finding in a new study by global loyalty marketing agency ICLP, which says brands are failing to harness the power of data.
“Collecting data is one thing, but drawing insights to create a meaningful dialogue with customers is critical to trigger action,” says ICLP executive VP APAC Mary English.
- Only 9 per cent of consumers interviewed say brands remember their previous purchase
- Just 10 per cent are offered personalised shopping recommendations
- Only 10 per cent receive relevant offers
- As few as 12 per cent find that retailers remember their birthday (perhaps the most basic level of customer recognition). The study shows that 88 per cent of Hong Kong shoppers say they do not think they will get anything in return for sharing their personal details with retailers – the highest percentage of the Asia-Pacific markets surveyed – compared with 78 per cent of shoppers in Singapore and 67 per cent in China.
Risk for brand
ICLP says the risk for a brand is that these consumers will ignore its communications, considering them irrelevant. Without personalised dialogue, there is limited opportunity for a brand to improve its relationship with its customers or to surprise and delight them, and thus inspire them to shop more often or make impulse purchases.
To create an intimate relationship with customers, brands must ensure they capture data across all channels – not just personal details, but also social activities, and payment and delivery preferences, say ICLP. Customers realise the importance of their personal information and expect to benefit from providing it. Brands should therefore respect the data consumers provide, and reward them for sharing their information by offering discounts, offers or other rewards, and use the data collected effectively by delivering real benefits to the customer.
Harnessing personal, transactional and social data gathered at point of sale and from social platforms enables brands to understand customers’ shopping, payment and delivery preferences. Brands can then provide personalised experiences, build emotional connections with customers and identify demand trends for use in product development.
To build stronger relationships with customers, brands need to be smarter about using and rewarding personal data, says ICLP.
For its survey, 750 Hong Kong consumers were surveyed in July last year.
With more than 25 years of experience, ICLP has 26 global offices and has a client list including Cathay Pacific, Dunhill, Esprit, Estee Lauder, Guess, Harrods and L’Oreal.