A new study has shown that brand loyalty is low when it comes to Singaporean shoppers.
The Criteo S.A. Why We Buy survey found that 78 per cent of Singaporeans are willing to consider shopping from a new brand across all product categories. Groceries (95.8 per cent) and apparel (93.4 per cent) are the top two categories where consumers are willing to do so.
Polling 1000 Singaporean shoppers to uncover insights across social media, brand perception, and discovery, the survey looked at consumer motivations for loyalty, repeat purchases and what makes them try a new brand. Across all categories surveyed, most Singaporean consumers usually stay loyal to a brand for one to three years even though they are open to trying new brands throughout their purchasing journey.
Offering low, affordable prices is not the only way to win the hearts of consumers. Almost three-quarters of Singaporean shoppers (74.9 per cent) are motivated to buy from brands that provide the best value for their money and a wide product selection (54.6 per cent). Contrary to popular belief, loyalty programs that drive purchase through earning points and rewards do little to motivate Singaporeans to repurchase. Only 39.5 per cent of Singaporean survey participants will purchase from a brand again for loyalty points.
“In the lead-up to the year-end sale seasons, Singaporean consumers are exposed to a lot more promotions and discounts,” said SEA-Pacific MD Alban Villani. “They are more desensitised to price differences as a result. Since Criteo’s survey has found that Singaporean consumers are open to trying new brands, brands who want to stand out and drive brand loyalty among consumers will need to find new ways to appeal beyond low prices and loyalty programs.”
Brand values continue to be a priority for businesses due to the influence on a consumer’s decision to purchase or purchase again from a brand. In fact, one-in-five consumers (19.6 per cent) will stop buying from a brand whose values are not aligned with their personal beliefs. And 48.5 per cent agree that purchase decisions are affected by brand values, while 46.1 per cent will purchase again from a brand whose values align with their personal values.
“Singapore has the fastest, and one of the highest internet-connectivity scores in the world, which enables consumers to be well-informed,” noted Villani. “In turn, they expect transparency with the brands they transact with, so businesses need to clearly communicate their mission and values.”
Singaporean shoppers welcome personalised and hyper-relevant online ads that help them discover new products. 61.8 per cent of consumers reported discovering a new product through online ads. Furthermore, 71.4 per cent will purchase again if they are offered a discount that is personalised and relevant, after trying a brand for the first time.
In the online world, most Singaporeans go to Facebook (69.2 per cent), websites (61.4 per cent) and YouTube (59.5 per cent) to discover new brands. This is closely followed by Instagram, email and online influencers.
“Consumer purchase decisions are highly complex and dependent on multiple factors,” said Villani in conclusion. “Brands need a trusted advertising partner who can produce hyper-relevant ads by leveraging global consumer data and a strong artificial intelligence (AI) engine.
“This enables brands to provide a personalised shopping experience throughout the entire customer journey to deliver the right ad, at the right time and place.”