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71% of Brazilian Consumers Optimistic About Their Future, Poised to Become a Major Market for Loyalty Industry

COLLOQUY’s 2011 Cross-Cultural Loyalty Study Uncovers Key Paradigm Shift Among Brazilian Consumers, Despite Concerns about Trust, Privacy

Posted: Tuesday, November 15, 2011 at 9:03 AM CST

Cincinnati, OH -- (SBWire) --11/15/2011 --A mere 10% of Brazilian consumers feel most people can be trusted, yet the economic outlook and optimism among natives of this country is so high, compared with both emerging and developed nations, that it signals an important shift in attitudes and unprecedented opportunities for loyalty marketers.

These findings, which span six global economies, are included in the “2011 COLLOQUY Cross- Cultural Loyalty Study,” the highlights of which will be presented by COLLOQUY Managing Partner Kelly Hlavinka today at Loyalty World Brazil, in Sao Paulo. The study, sponsored by Epsilon and LoyaltyOne, provides a timely and comprehensive snapshot of consumer attitudes toward loyalty.

COLLOQUY, a LoyaltyOne publication, is a leading provider of loyalty marketing publishing, research and education. Epsilon is a global marketing and analytics leader focused on helping brands deepen their relationships with customers.

The results of the research indicate that Brazilians are approaching a significant turning point in terms of their outlooks and perceptions of loyalty programs. Seventy-one percent of Brazilians said they are confident their economic prospects will improve over the next 10 years.

This compares with only 17% of consumers in the United States, 18% in Canada, 12% in Australia, 34% in India, and 47% in China.

While the average Brazilian today is overwhelmingly pragmatic, discount-oriented and concerned about privacy issues, the country’s very high optimism rating supports changing attitudes regarding special treatment and recognition. Indeed, 49% of Brazilians in the A/B socioeconomic class* say they do not participate in a loyalty program because none is available, demonstrating substantial upside potential for marketers.

Among the other findings:

- Brand loyalty pays off: 35% of all Brazilians strongly agree it pays to be loyal to a favorite brand, outpacing all nations: 12% in the United States and Australia, 10% in Canada, and 24% in each India and China

- Love those benefits: Brazilians in the A/B socioeconomic class overwhelmingly join loyalty programs for the rewards and benefits, at 76%, while 40% said they join because they frequently shop with the merchant, and 36% because of advanced offers and access to special events

- Great expectations: 43% of all Brazilians strongly agree they “expect special service” when shopping – a figure that far outpaces those of the other markets. In China, 25% of those surveyed said they expect special service, while in India the figure is 24%. In the developed nations, 9% of U.S. and Canadian consumers and 11% of Australians expect special service

- Saving for something big: Brazilians are the most aspirational consumers of the six countries studied, with 63% of those in A/B socioeconomic households most likely to save for a big reward

- Win our trust: Brazilians rank as the least trusting consumers of the surveyed markets, with just 10% saying most people can be trusted. By contrast, 44% of U.S. consumers, 46% of Indian consumers and 49% of Chinese consumers feel most people can be trusted

- Want some privacy: 68% of all Brazilians said they are concerned about privacy and protection of personal information, far outpacing other markets. In the United States, 52% consumers strongly agree that they are concerned. In Canada, the figure is 51%; In Australia, 49%; China, 40%; and India, 33%.

“Our research gauges the attitudes and perceptions of Brazilians today, but it has also uncovered a paradigm shift – one that could define what your loyalty programs will be tomorrow,” said Hlavinka. “Forward-thinking organizations will want to prepare today for that tomorrow. By creating and delivering more inspired experiences now, these companies will be poised to capture this emerging market.”

The full research findings will be released by COLLOQUY in a three-part white paper series. The first in the series, entitled “The Global Loyalty Compass,” is now available at http://www.colloquy.com/crosscultural.

- Methodology
COLLOQUY’s cross-cultural research study was fielded from July 7-18, 2011. The Brazilian survey was completed entirely online in both English and Portuguese. The regions captured by our sample include Center-West, Northeast, North, Southeast and South. Class-based differences were calculated using the standard SEC points system. This system takes into account the education of the head of household, the number of consumable goods owned by the family and whether or not the household has a monthly maid. For the purpose of our study, COLLOQUY looked solely at SEC A, B and C. We collected a total of 309 responses for SEC A/B and 209 for SEC C.

About COLLOQUY
COLLOQUY comprises a collection of publishing, education and research resources devoted to the global loyalty-marketing industry. Owned by LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since 1990 with over 40,000 global subscribers to its magazine and http://www.colloquy.com the most comprehensive loyalty web site in the world. COLLOQUY’s research division develops research studies and white papers including industry-specific reports, sizing studies and insights into the drivers of consumer behavior. COLLOQUY also provides educational services through workshops, webinars and speeches at events throughout the world and is a loyalty-marketing partner of both the Direct Marketing Association and the Canadian Marketing Association and a content provider to the American Marketing Association. COLLOQUY also operates the COLLOQUY Network, a global consortium of practitioners certified in COLLOQUY’s proprietary methodology. COLLOQUY magazine subscriptions are available at no cost to qualified persons at http://www.colloquy.com or by calling 513.248.9184.

About LoyaltyOne
LoyaltyOne is a global provider of loyalty strategy and programs, customer analytics and relationship marketing services. Its roster of clients includes leading businesses and brands in multiple sectors such as retail, banking, manufacturing, government, natural resources and utilities. LoyaltyOne businesses include Canada's AIR MILES Reward Program - North America's premiere coalition loyalty program, COLLOQUY, Precima, LoyaltyOne Consulting Direct Antidote and Dotz in Brazil. LoyaltyOne's industry-leading Associates, practical experience and proven capabilities set the benchmark of thought leadership in the loyalty marketplace. Toronto-based LoyaltyOne is an Alliance Data company. For more than 30 years, Alliance Data has helped its clients build more profitable, more loyal relationships with their customers. For more information, visit http://www.loyalty.com.

About Epsilon
Epsilon is the industry's leading marketing services firm, with a broad array of data-driven, multi- channel marketing solutions that leverage consumer insight to help brands deepen their relationships with customers. Services include strategic consulting, acquisition and customer database technologies, loyalty management, proprietary data, predictive modeling and a full range of direct and digital agency services, including creative, interactive web design, email deployment, search engine optimization and direct mail production. In addition, Epsilon is the world's largest permission-based email marketer. Epsilon is an Alliance Data company. For more information, visit http://www.epsilon.com or call 1-800-309-0505.