In the dynamic landscape of Indonesian consumerism, the age-old adage “survival of the fittest” has never rung truer for businesses. SAP Emarsys’ 2023 Customer Loyalty Index survey investigated over 10,000 consumers globally and observed a decline in brand loyalty from 79% to 68%, indicating shifts in consumer-brand interactions and an acute need for brands to reassess their brand strategies. The emergence of a consumer base driven by trends, quick decisions, and less loyalty has forced brands to rethink their strategies to keep themselves top of mind. In an era where consumer loyalty is key for sustainable growth, brands should establish habits that keep users coming back to survive.
Indonesia, with its diverse cultural tapestry and rapidly evolving economic landscape, presents a unique set of challenges and opportunities for brands seeking to navigate consumer preferences. With an increasing amount of information online, access to commerce platforms and opportunity at their fingertips, consumers are empowered by unprecedented knowledge and choice, leading to what McKinsey and Company coined as “zero consumers”. They are a new kind of shopper – one that has little patience, zero brand loyalty and places priority on convenience and speed. So, consumers are just not shopping how they did before – they are prone to leave once-preferred brands down the road in pursuit of better value, experience, or alignment with their values.
What does that mean for brands? Be agile, be innovative, think differently. Brands must be quick to anticipate and respond to shifting preferences, whether by introducing new product variants, leveraging emerging technologies, or harnessing marketing avenues like before. This requires a deep understanding of local tastes, customs and traditions to resonate with the diverse Indonesian audience.
Why Is Brand Loyalty Declining – And How Can They Win?
Price emerges as the primary catalyst prompting customers to switch brands, with 59% acknowledging they would transition to a more cost-effective alternative. While loyalty programs retain significance as respondents say that the presence of a loyalty card impacts their spending patterns, the allure of personalized, positive shopping experiences and exclusive offers is also important, highlighting the intricate and varied nature of customer loyalty.
In a market inundated with options, authenticity sets brands apart from the competition. By showcasing their unique story, values and purpose, brands can forge meaningful connections with consumers who share their vision and beliefs. This authenticity can form connections and loyalty that transcends transactional relationships, fostering brand advocates who champion the brand in their networks.
Getting the Attention Your Brand Needs
Capturing audience attention and engaging them through interactive ads are also vital components of a successful brand strategy. In an age where consumers are bombarded with information and advertisements, brands must find creative ways to stand out. Interactive ads provide an opportunity to captivate audiences and invite them to participate actively in the brand experience. Whether through quizzes, polls, gamification, or immersive storytelling, interactive ads create memorable experiences that leave a lasting impression on consumers.
Gaming presents an excellent environment to engage the Indonesian audience due to its highly attentive space and interactivity. With many Indonesians being daily gamers, brands have a unique opportunity to tap into this passionate community. Omnicom Group’s latest report “Unlocking Gamers in Asia-Pacific” reveals that 74% of Indonesians play games to unwind from stress, and more than 70% either feel relaxed, happy, or excited playing games. The positive emotions formed during gaming are likely to be extended to the brands advertised within the game by association. Many forms of Interactivity can be used to help consumers learn more about a brand, personalize the ad experience even gamify it. Different forms of interactive ad units, crafted around different objectives, have shown to lead to massive brand lift. Based on research done by King’s College London and the City University of London, a 35% lift in brand choice is seen when consumers engage with an ad unit that encourages product interaction, and a 31% lift when the ad unit allows consumers to browse more information.
Studies conducted in collaboration with attention measurement experts Lumen and Amplified Intelligence reveal that interactive ads within mobile games significantly outshine social and web videos, capturing attention at a rate over ten times higher. On average, the studies found that rewarded video ads outperformed by over 10X on attention, grabbing 22 seconds of focused attention per ad compared to 2-3 seconds for ads in standard social formats.
By incorporating interactive elements into their advertising campaigns, brands can not only capture attention but also foster deeper engagement and connection with their audience. This level of interaction cultivates a sense of involvement and ownership, deepening the player’s connection with the brand and increasing brand recall.
The survival of brands in the age of consumer disloyalty hinges on their ability to adapt, innovate and engage with Indonesian consumers on a deeper level. By embracing agility, transparency, digital engagement and interactive advertising, brands can navigate the turbulent waters of the Indonesian market and emerge as frontrunners in the race for consumer loyalty. In this ever-evolving landscape, only the fittest brands will endure, leaving behind those that fail to evolve with the times.
