Study: Loyalty programmes contribute to sustainable spending in Malaysia

Loyalty programmes are a factor that contributes to spending among sustainable shoppers in Malaysia. Those who prefer sustainable brands are more likely to spend more with brands when they are a member of their loyalty programme (44%) as compared to the general population (37%), according to data from YouGov Profiles. YouGov defines sustainable shoppers as those who agree with the statement "I prefer brands that are sustainable".

Meanwhile, 47% of sustainable shoppers aged 25 to 34 and 46% of those aged 35 to 44 say they spend more when they are members of loyalty programmes, accounting for the greatest proportion of sustainable shoppers who say so.

According to YouGov, the biggest behavioural disparity between sustainable shoppers and the general population is also seen among those aged 35 to 44, with almost half of sustainable shoppers saying they tend to spend more when members of a brand's loyalty programme (46%) as compared to 37% of the general population.

Meanwhile, 67% of consumers living in Malaysia say they prefer brands are sustainable. Interestingly, men are more likely to be sustainable shoppers, with 69% of them preferring sustainable brands. These statistics reiterate that environmentally conscious behaviour from brands weighs heavily on consumers' minds.

At the same time, sustainable shoppers tend to be less price sensitive in their purchases. Overall, although 25% in Malaysia said they would shop specific brands without looking at the price, 29% among sustainable shoppers said the same.

When it comes to price sensitivity towards products that are good for the environment, 64% would be willing to fork out more for eco-friendly products. This number increases to 73% among sustainable shoppers. Also, such behaviour is consistent across age demographics and highest in sustainable shoppers above 55 years old (79%). According to YouGov, this indicates that paying a premium for environmentally friendly products is not a concern for the sustainable shopper.

While sustainability might be all the rage these days, it seems like walking the talk in this area seems easier said than done. In an earlier report, Forrester said only 33% of large APAC firms have created a position for a director, VP, or executive to lead the company's sustainability programme, compared to 58% among the Fortune Global 200. Firms that don’t have a dedicated lead instead have sustainability committees made up of CEOs, department heads, and other C-level executives.

Although the pandemic has placed greater emphasis on sustainability, the report found that too many APAC firms' sustainability plans remain limited or even simply performative. To make matters worse, some of these plans were even put on hold during the pandemic, Forrester added.

Photo courtesy: 123RF

Related articles:
What works better in advertising: Guilt or hope?
Study: Singapore's SMEs need a lot more help in creating sustainable practices
Sustainable media: Govt and brands held more accountable than ad industry
4 steps for FMCG firms to create sustainable growth post-COVID
Mixed progress in SG green transformation, sustainability manager role on the rise
APAC firms' sustainability progress 'inconsistent', plans remain performative