Tag: Consumer expectations

As the joyous Raya season approaches, brands have a unique opportunity to connect meaningfully with their Muslim consumer base by aligning their messaging, products, and initiatives with Islamic values and cultural sensitivities. Beyond festive promotions, this period calls for authenticity, inclusivity, and a deep understanding of the traditions that shape consumer preferences.

Ahead of these festivities, Mastercard and Crescent Rating recently released a report highlighting consumer trust and brand engagement in the growing Muslim markets of Indonesia and Malaysia. With Indonesia being home to the world’s largest Muslim population and Malaysia positioned as a global leader in the Halal economy, both markets present valuable opportunities for businesses looking to align with the needs and expectations of Muslim consumers.

The study highlighted that around 90% of Indonesian and Malaysian consumers prioritise brands that follow faith-based values and principles, and around 40% of consumers turn to social media platforms like TikTok and Instagram to discover brands.

To better understand how brands should connect with their Muslim consumers genuinely, we recently sat down with Aisha Islam, senior vice president of Customer Solutions Center for Southeast Asia at Mastercard to create better experiences that meet the evolving needs of Muslim consumers.

Consumers want to be part of the narrative

For Aisha, one of the key observations amongst Muslim consumers nowadays is that they are increasingly seeking sustainable and mindful experiences that align with their beliefs and lifestyles in a holistic manner, not just Halal-compliant products. Moreover, digital-first consumers don’t just want to hear brand stories; they want to be part of the narrative.

“Brands should transition from storytelling to ‘storymaking’ to better create and curate experiences that resonate with consumers’ values, passions, interests, and most importantly, their identities, including their religious identities. This approach is key to forging genuine connections for their customers,” she explained.

This explains why many Muslim consumers gravitate to brand loyalty programs, with around 66% of Malaysian consumers engage in brand loyalty programs, with 70% finding them highly effective, presenting a clear opportunity for businesses to improve customer retention strategies. Despite only 24% of respondents in Indonesia engaging in brand loyalty programs, both consumers from these markets show a strong belief in the effectiveness of these programs, with more than 65% of respondents rating them positively.

Speaking about brand loyalty amongst Muslim consumers, Aisha also added, “Brands should consider how to engage with communities through social media, events, and partnerships with relevant influencers or organisations. Investing in value-added loyalty programs that go beyond just discounts is crucial. For example, offering loyalty redemption opportunities to support charitable causes that resonate with their desire for community support and ethical spending.”

A good example of where proper engagement with Muslim consumers comes into play is in travel, where Muslim travellers are increasingly using technology to personalize their travel experiences through apps that help them locate Halal food outlets, Qibla directions, and prayer timings.

At the same time, Aisha also stated that brands must consider other benefits such as exclusive access to events, personalised content, and community-driven initiatives to foster a sense of belonging and community. These can be amplified during  Ramadan, Eid al-Fitr, and Eid al-Adha, helping brands creating meaningful and memorable loyalty with their Muslim customers.

To follow the needs of Muslim consumers, she advises brands to follow the ‘TRUST’ framework, which stands for Transparency, Respect, Understanding, Service, and Technology; as these are the foundational elements for establishing and maintaining long-term relationships with Muslim consumers. 

Using data analytics to improve customer relationship

Aisha notes that as with any effective customer relationship strategy nowadays, digital engagement is an essential part of any customer relationship today. Utilising platforms such as social media campaigns, online communities, and mobile apps can foster a strong, interactive relationship with the audience.

In the Muslim context, however, Aisha specifies that it is important that brands ensure that their branding and advertising efforts are inclusive and reflective of Muslim identities while resonating with a wide audience. 

“Brands do need to be sensitive to develop marketing campaigns with appropriate imagery, language, and messaging that respects and reflects Islamic values and culture,” she stated.

The report highlights that cultural and faith sensitivity plays a crucial role in consumer engagement, with nearly 90% of respondents highlighting the need for brands to honour their faith traditions. Companies that meet these expectations are more likely to earn consumer trust and foster long-term loyalty.

To better align with Muslim consumer needs, Aisha also encourages brands to leverage training to ensure that their staff is appropriately trained in cultural sensitivity and accessibility to accommodate Muslim consumers.

“Rather than relying on the perception of broad accessibility, proactively reach out to the Muslim demographic providing them with suitable options upfront. For instance, highlight facilities and services designed to respect and cater to faith practices, such as prayer spaces, Halal food options, and appropriate privacy measures,” she stated.

She also added that by leveraging data analytics, brands can deliver hyper-personalised experiences and product offerings that align with individual consumer preferences and speak to their values and expectations.

“When it comes to products, provide detailed information about their sourcing and certification to build trust with your consumers. Consumers across the board value authenticity and transparency, so aligning your brand’s messaging and actions with the values and expectations of the Muslim community is crucial to meeting their expectations. This approach helps establish strong, lasting relationships and ensure long-term success in this segment,” she further explained.

How to enforce brand credibility to consumers and community leaders

Online platforms are crucial for brand visibility and consumer engagement. In Indonesia, TikTok and Instagram dominate as key channels for customer interactions, whereas Malaysia demonstrates a more diverse approach, blending digital advertising, in-store promotions, and personal recommendations. 

In the report, they indicate that short-form video content, influencer partnerships, and genuine brand narratives are particularly effective in capturing the attention of Muslim consumers.

To reinforce credibility to Muslim consumers through these channels, Aisha notes that brands must forge strategic alliances with community leaders and influencers is important to enhance credibility and amplify their message in a culturally respectful way. According to her, these partnerships can provide nuanced insights, ensuring your narrative or messaging resonates.

“The importance of developing social marketing campaigns with appropriate imagery, language, and messaging is just as critical as messages can be easily misconstrued or reach unintended audiences,” she said.

Aisha added, “Encourage dialogue by asking for feedback, responding to comments, and engaging in conversations between your spokespeople and the community. This demonstrates that you value the opinions of your audience.”

Moreover, she added that most ASEAN markets have their approach to the halal industry, reflecting distinct cultural, economic, and policy-driven strategies. For her, being mindful of these nuances ensures that their culture is represented respectfully. 

Lastly, for brands targeting the mass market Muslim consumers, Aisha asks brands to consider an educational aspect in the content they are creating as this can help foster understanding and appreciation among a broader audience. 

“Implement narrative-driven content strategies that showcase real stories and experiences from the Muslim community. This approach seeds deep emotional connections and reinforces brand authenticity. By focusing on community engagement, authentic storytelling, and strategic partnerships, brands can create meaningful and respectful media that can go a long way in fostering loyalty among Muslim consumers,” she concluded.

What can marketers do to keep up with this seismic shift in consumer expectations where hyper-personalised relationships with brands are the only way forward? According to Cheetah Digital’s new Digital Consumer Trends Index, 67% of consumers do not trust the advertising they see on social media platforms. And more than half (63%) don’t trust social media platforms with their data.

 In a recent Cheetah Digital-hosted webinar, Teresa Sperti, founder and director at Arktic Fox doesn’t find the results surprising at all. 

“Over time, there has been an erosion in the level of trust for social platforms,” she points out. “As a whole, this has led consumers to be increasingly wary about the information they provide on these platforms and how their data is being utilised.” 

She credits this erosion of trust to a couple of things. First, consumers are concerned about the social impact these platforms have on society; and secondly, consumers are worried about the approach that’s taken to harvest their data.

Consumer trust in social media ads on the decline

A recent Washington Post poll finds that, of all the large tech companies, social platforms like Facebook and Tiktok have the lowest level of consumer trust. In fact, 72% of internet users rated their level of trust in Facebook as ‘not much’ or ‘not at all’ to responsibly handle their personal information and data on their internet activity. And roughly six in 10 distrust TikTok and Instagram, while slight majorities distrust WhatsApp and YouTube. This decline in trust mirrors Cheetah Digital’s findings to a T. 

Adam Posner, CEO and founder at The Point of Loyalty, and one of the panellists in the webinar agrees, pointing out the disruptive aspect of social ads. “The ads interrupt and are, oftentimes, irrelevant. But even more, they’re invasive. That aspect of social ads feels creepy, which works to erode consumer trust as well,” he says.

It’s ironic when you consider that social platforms emerged as a way to drive engagement with the audience. Since it’s moved into a sphere of profit over people, they’ve moved further from their reason for existence. 

“These days, it’s all about monetisation of the platforms. As they’ve increased the amount of advertising, consumers have become bombarded with all kinds of messages,” Teresa says. “It’s become hard for consumers to decipher what’s ‘fake news’, if a product is quality or if they’re potentially being taken for a ride.”

Adam brings up the idea that, on these platforms, the consumer is essentially the product. “It’s a real awakening,” he says. “Consumers are realising that if they’re the product through their data, then that means they’re valuable. So, naturally, they’ve become even more protective over their data.”

It seems what that’s creating is a data economy as a consumer. We’re going to see a shift to a value exchange where the platform says give me your data, and I’ll give you something to make it worth your while. That’s when social platforms will start regaining consumer trust.

Teresa adds, “Customer expectation is changing. The brands that are going to win moving ahead are those that have earned the right to effectively communicate, earned the right to be entrusted with data and are able to retain the right to utilise that data. And a lot of that comes back to control and consent.”

Meanwhile, Cheetah Digital’s report also shows that email still reigns supreme when it comes to driving sales, beating paid social and display advertising by up to 228%. “The statistics don’t lie. We’ve gone back to the future of marketing, in a sense. In light of all the creepy advertising, marketers are going back to the basics of building a brand. And that’s putting the spotlight back on email.

Email continues to be a trusted channel. At least 90% of consumer brands have emails and it’s widely accepted. So it’s a great foundation and super effective for marketers.

A new era of ‘relationship marketing’

The findings in Cheetah Digital’s report signal a new era of relationship marketing. 63% of consumers are willing to pay more to purchase from a trusted brand. Almost half (40%) of consumers are more likely to take part in loyalty programs compared to last year. And 24% of consumers left their favourite brand because they didn’t feel valued as a customer. 

Relationship marketing is personalisation on a deep one-to-one level. It’s really about understanding your consumer, listening and building a relationship with them. It’s marketing to them the things they actually care about. Because that’s what relationship marketing is all about, caring about each other.

“There are many layers to relationship marketing,” Adam adds. “And a lot of it is contextual. Some customers might want a transactional relationship with one brand and a more personalised relationship with another. But all customers want acknowledgement and appreciation.”

In today’s competitive landscape, brands are finding it increasingly challenging to maintain loyalty and build strong relationships, Teresa says. Even more, many marketing teams are pushed to do more with the same resources. It’s the perfect storm, keeping their relationship marketing strategies stagnant and transactional.

“Many are still very transactional and predominantly focused on delivering business outcomes rather than providing real value to the customer,” Teresa points out. 

“Value exchange is so important. Yet it still feels like much of the activity that brands are driving to market is about what they want the customer to do and what outcomes they’re looking to achieve as opposed to truly understanding what it is that the customer wants. 

“You have to go out and talk to them. As brands, we’re still not very good at listening to our customers. It’s really hard to do relationship marketing when we don’t understand our customers intimately.”

A brand that is hitting it out of the park when it comes to relationship marketing, Teresa says, is Starbucks. “Starbucks invested early in understanding the customer and driving loyalty. It knows that in an ever-changing landscape, its customers want convenience and frictionless experiences. The experiences that Starbucks has developed deliver true value to its customers.”

The double-edged sword of privacy in a cookie-less world

The death of the third-party cookie is imminent. And for consumers, it won’t get here a moment too soon. According to Cheetah Digital’s report, a staggering 69% of consumers think product recommendations from cookie tracking or similar is creepy, not cool. And while only around one in 10 (13%) consumers will miss cookies and think they make for a better experience; the number of marketers who will miss them is likely a lot more. 

“I don’t think brands are ready for a cookie-less future,” Teresa insists. “We recently surveyed over 200 senior digital marketing leaders from brands, big and small, for our 2022 Marketing State of Play report. We found that only 12% of brands feel like they have a clear path forward, and almost half admitted they have yet to start planning for the change that’s coming.”

Despite all the buzz about third-party cookies, Teresa believes brands haven’t fully grasped what it truly means. And a significant part of the issue is data literacy. “Our report reveals that there are very low levels of data literacy within marketing teams in this country. Only one in three feel that their teams have strong data literacy,” she explains. “That’s part of what’s driving this. It’s very hard to know how to adapt when you don’t have strong data literacy or knowledge about concepts like cookies.”

At the other end of the spectrum, Teresa shares how brands are typically slow to adapt without a catalyst. Take COVID, for instance. Brands should’ve been working on their digital transformation long before March 2020. But it took this unprecedented event just to get them started. She says the same is likely to happen with cookies. Brands will scramble to change the day third-party cookies die. 

Their first line of defence will have to be a first-party data strategy in the form of a loyalty program. However, it’s vital that brands recognise that loyalty is only one piece of the puzzle. 

Loyalty programs are a great tool to get first-party data, preferences and all the things that help a brand understand its customers. But there’s still a long way for brands to go. They need to figure out how to go to market with their limited budgets, all the information we provide and with some tech behind it to make it happen.

The takeaway message for brands, the panellists concede, is to be brave. If you remain fearful, you’ll never evolve and innovate. It takes having the right champions in place who are willing to be bold enough to take the brand through a true digital transformation. To take their data renaissance to the next level. 

Access the webinar free and on-demand here.

This article is written by Miles Toolin, senior solutions consultant at Cheetah Digital.

Cheetah Digital is a cross-channel customer engagement solution provider for the modern marketer. The Cheetah Digital Customer Engagement Suite enables marketers to create personalised experiences, cross-channel messaging, and loyalty strategies to meet the changing demands of today’s consumer.

Hong Kong SAR – ESG and sustainability issues alike have been moving up the corporate agenda in recent years. According to Google Search Trend, the keyword ‘ESG’ search popularity in Hong Kong has been soaring and surpassed ‘Sustainability’ in May this year; however, public curiosity about the topic doesn’t seem to convert into actual practice, according to the territory-wide SME sustainability survey conducted by the Centre for Civil Society and Governance (CCSG) at The University of Hong Kong.

According to the findings, slightly over one-third (36.7%) of SMEs rated themselves as effective at advancing sustainability goals compared to only 4.4% of SMEs rated ineffective. Among the 24 practices across five dimensions, namely governance, workplace culture, customer-supplier relationships, resource management and innovation, the study reveals that the average number of sustainability practices adopted was 7.7 across all industries.

SMEs were quick to be honest that they are encountering several dilemmas in achieving sustainable practices. Amongst such challenges, economic and financial instability comes out on top (65.4%), followed by global health crisis (53.8%), and consumer expectations (22.9%), which suggest that SMEs are struggling to stay resilient and recover from the unstable economic environment. 

In contrast, long-term social-ecological risks such as climate change, human rights, and inequality only received 6.3%, 4.8%, and 3% of respondents identified them as a challenge. This might suggest that SMEs are less concerned about the potential risks induced by climate change, or not aware enough of social challenges such as inequalities in the workplace that could cause serious implications for their businesses in the long run.

Furthermore, the study found that the most needed support for integrating sustainability into the SMEs’ business operations, strategies and business models are namely financial support (47.7%), and marketing support (41.2%), whilst such support is ideally provided by the government (69%), followed by business associations, and banks and financial institutions, both receiving 30.8% of the response. This implies that the most effective way to encourage SMEs to integrate sustainability is to offer financial incentives.

Professor Wai-Fung Lam, director of CCSG, and professor of Politics and Public Administration at the University of Hong Kong, remarked, “The business sustainability agenda has been steadily gaining momentum. However, the spotlight remains on the role of multinational corporations and listed companies. As the engine of economic progress, SMEs have made diverse contributions to social and environmental well-being. Yet, their unique challenges and constraints have not been widely studied. This points to the need to understand the role and positioning of SMEs in creating the impulse to achieve widespread positive, social, environmental and economic change for a more sustainable future.” 

The Survey was based on the views of 1,400 SMEs in Hong Kong within the period of November 2021 to April 2022.