Danilo Vasconcelos, CEO at CSU MarketSystem kindly provided this whitepaper on the topic ‘Challenges and opportunities in balancing loyalty programs and branding’ . In the paper Danilo presents the opportunities that loyalty programs are facing in Brazil.
The loyalty market in Brazil is still small as compared to other countries, considering the programs penetration among the population. It has a big potential and it is rapidly growing. International companies are being settled in the country, the national loyalty services providers have shown growth rates like those ones of China and the companies' interest in having a loyalty program is increasing.
Although, it is still "crawling", in several industries the loyalty programs are already or are becoming a commodity, embedded in a product. Hence, the war will be won not by the fact of having a loyalty program or not, but in having the best program (the most attractive one), not only in relation to competitors but regarding all other programs of the market. After all, the consumer will not render the necessary attention to three, four or five programs. The consumer will choose the program that best fit their necessities.
That is why a complete loyalty catalog should offer the companies that manage loyalty programs, all options.