Hong Kong natives balk at retailer reward programmes : Nielsen

The market research company has based its findings on a telephone survey of 500 consumers aged between 15 and 64. The survey's objective was to understand their habits and expectations when participating in retailer reward programmes.

Research showed that most Hong Kong natives were frustrated by the reward programme's complicated application process (17 per cent), and the unattractive rewards offered. A futher 16 per cent were simply not interested in anything retailers had to offer.

“Hong Kong consumers are very time conscious and as a result, an easy and simple application is an important criterion for consumers to consider enrolling in any reward programmes,” said Oliver Rust, managing director, Nielsen Hong Kong. “While consumers mainly participated in the rewards programmes for the discounts, attractive and targeted rewards is another key attribute for retailers to consider as they launch their reward programme to meet the expectation of their targeted customers."

Preferred application processes are in-store with direct help from well-trained staff (68 per cent). Only 22 per cent prefer to apply online.

So what would get them to sign up? Mostly, consumer want cash coupons (60 per cent), discounts (57 per cent) and cash rebates (53 per cent). If the offers are product-related, they should be customised to consumer needs. Furthermore, reward redemption methods are also important factors for consumers. 

"While cash discounts are more important in triggering people to participate, discount offers are more effective in retaining continuous patronage of shoppers. Product education and information sharing are also key tools to leverage for continuous patronage,” Rust commented.