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Brand loyalty takes a back seat during Ramadan in Indonesia, says new study

Southeast Asian consumers values convenience over loyalty during Ramadan, suggests new data by global martech company Blis. Dining, FMCG and travel marketers should therefore, make use of location data to target commuters and make sure their offerings are stocked at as many major outlets as possible. According to the study, convenience-first attitude is especially evident when it comes to dining as fast food options are “incredibly popular” after sunset.

Brand loyalty, in turn, becomes secondary in consumers’ minds during the Ramadan period.

While Burger King was found by Blis’ research to be the most popular eatery in Indonesia, 78% and 63% of its customers went over to Pizza Hut and KFC respectively for Iftar. Meanwhile, Carl Junior, which is Indonesians’ second-favourite, saw 44% of its customers patronising Burger King.

Timely brand presence, such as serving an ad in proximity when it’s time for Iftar, can sway those micro-moments in marketers’ favour, said the press release. Marketers can attract new customers through targeted offers for family meals on mobile devices and even raise brand awareness when consumers are at a rival eatery through geo-fencing. Given dining with family is a priority during Ramadan, marketers should also target office workers near their restaurants who are looking to skip traffic, but still meet up with their families.

Meanwhile, for FMCG brands, Blis discovered a spike in search and browsing activity in the early hours before sunrise (4-5am) and in the evening (5-8pm), pointing again towards potential conversion among commuters. To leverage this, FMCG marketers can add geo-fencing to their marketing strategy and incorporate bus stations as a channel. Doing so has the “advantage of dwell time” as well as opening an opportunity to link out-of-home and mobile campaigns, said Blis.

Travel marketers too, has a real shot at driving engagement and conversions, as the Muslim community plan their trips for Mudik.

“Travellers value travel updates, discounts and promotions, advice on the best routes and the entertainment they can view while travelling. That is why it is vital to directly target devices in airports, train stations and bus stations on peak travel days,” added the press release.

In the lead up to Ramadan on 5 May, several companies have released data pertaining to consumer trends during the season. AppsFlyer for instance, analysed app spending for various types of apps before, during and after Ramadan. For the past two years, shopping apps revenue saw considerable growth rates, while travel apps registered the most consistent growth.

Criteo, on the other hand, revealed online sales performance during Ramadan, and the optimal time campaigns should commence and end. While those in retail should start their marketing efforts two weeks before the Eid al-Fitr, those in travel are recommended to continue beyond Eid al-Fitr to maximise their investment.

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