Building Brand Loyalty in Latin America

May 2023

Customer loyalty in Latin America is evolving amid the evolving consumer preferences and needs. Players must embrace regional macroeconomic, social and consumer specifics to be able to withstand the increasing competition. Embracing technological innovation and emotional loyalty will help drive customer retention. 

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This report comes in PPT.

Key Findings

Digitalisation is key to engaging with younger generations

Digitalisation is high in Latin America, especially amongst younger generations. Loyalty will need to meet these consumers online with a value proposition that highlights convenience, innovation, engagement and dialogue. Web 3.0 (ie intelligent assistants on webpages), the metaverse and tokens are examples of where loyalty is headed.

Retailers have a clear advantage in loyalty

The largest retailers in Latin America are present across multiple channels and can satisfy multiple consumers’ needs simultaneously. These retailers often utilise the same loyalty programme in various countries, and most are basic, transactional and with low emotional connection or real customer engagement. Private label also offers a clear alternative to more expensive name brands meaning brand loyalty is not feasible for price-sensitive consumers.

Emotional engagement and personalisation will be key attributes

Loyalty programmes are primarily transactional and based on discounts and cashback. Emotional engagement and personalisation (utilising the big data available on consumers) will be key attributes for differentiation as younger, more diverse generations come of age. Social or environmental causes will also allow loyalty to connect with consumer emotions.

Loyalty programmes must deliver immediate rewards

Increasingly price-sensitive consumers are demanding more value for money options, as soon as possible. If loyalty does not mean immediate rewards, consumers will find little value in it and will look for another loyalty programme that offers them what they want.

Partnerships can fast-scalabtrack ility of loyalty success

Partnership can help on scalability and bring value to loyalty programmes that focus on one core business area. Small players can gain scalability by creating ecosystems through partnerships as well as by joining third party coalition programmes.

Key findings
Latin America key facts 2022
Key drivers for loyalty optimisation in Latin America
A highly unequal Latin America affects everything from exclusivity to discounts
Inflation hits consumers' purchasing power
Loyalty programmes should adapt to local needs…
…and understand spending habits and shopping preferences
The future of loyalty is online
Loyalty across generations
Market concentration amongst retailers is key for maintaining loyalty
Retailer credit is synonymous with loyalty in Latin America
Going from transactional to emotional engagement opens the door to brand loyalty
Key drivers of loyalty in Latin America
Effective strategies to help innovate and restructure loyalty schemes
Shifting consumer behaviour requires localised strategies
Walmart Chile: Thinking outside the box to support local loyal members
Club Jüsto: Using artificial intelligence to enhance consumer service
Rappi: New partnership with an international scope
Direct selling, beauty segment and loyalty programmes : The impossible triangle
Upgrading traditional loyalty schemes to boost the return on investment
Mercado Puntos (Mercado Libre) unlocks entertainment as a loyalty reward
MinisoLove: Gamified customer engagement programme well received by members
Priceless: A unique experience for Mastercard customers
Leading coalition loyalty players in the region
Super apps can help transform traditional loyalty formats
Tapp: The super app from Costa Rica that supports all your loyalty programmes
Partnerships take on a new meaning
Volaris: Loyalty programme in partnership with FEMSA
Itaú Bank: Launching Viaje Semper Itaú travel subscription scheme in partnership with CVC
Innovative loyalty technologies from start-ups are boosting loyalty schemes’ appeal
Bci Bank Chile: Spearheading the launch of cashback offer as part of Bci Plus+
Unlocking the future of loyalty with Web 3.0
Clube de Regatas do Flamengo: Launching its own loyalty programme on Web 3.0
NEAR and Grupo Nutresa join forces to set up Web 3.0 loyalty scheme
Ahau Collection Resort: Hotel room package reimagined through NFTs loyalty scheme
Key takeaways: Opportunities to explore

Consumer Finance

This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.

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