With customer retention now of prime importance, there are huge opportunities for companies in the region that can find out more about their consumers and improve their service accordingly. Data giant Acxiom certainly seems to think so - the global MD of its digital arm was recently in the region, a sign of its interest in turning Asia’s growing internet population into a data goldmine.
Privately, many Western marketers coming into the region still express surprise and dismay at the rudimentary way customer data is used. Obviously in emerging markets there are major logistical barriers to achieving the sort of systems seen in the US and Europe. But even in sophisticated markets such as Hong Kong and Singapore there are huge strides to be made in terms of processing data and using it to segment consumers and refine marketing strategies.
Meanwhile, UK retail giant Tesco has posted 16 per cent sales growth in Asia. With growth in its domestic market slowing, the company is ramping up its overseas operations - Asia will be one of its key focuses on the next few years. It has already launched agency pitches in Malaysia and Indonesia as it prepares to raise its game in the region. Why is this important? Simply that Tesco is one of the most sophisticated users of consumer data on the planet. It is no exaggeration to say that the launch of its ClubCard, a loyalty system that logs consumer purchases and turns them into targeted discounts and offers, transformed direct marketing in the UK. It has also done wonders for the firm’s financials - the company is expected to post profits of US$4.5 billion for 2008.
Will it be able to bring some of that expertise to its Asian operations? Marketers of all backgrounds should be watching carefully to find out.