Emerging Trends in Vietnam and How Brands Can Leverage it For Customer Loyalty

It’s no secret that middle-class consumers in Vietnam have been on the rise, becoming the major purchasers in the country. In fact, according to a McKinsey report, the Vietnamese population will enter the global middle class by 2035, creating more disposable income, fueling consumption, and stimulating spending. This opens a wide range of opportunities for brands and businesses in the Vietnamese market, which is said to be one of the fastest-growing markets in Southeast Asia.

Despite all the economic disruptions affecting the world, the loyalty market in the country will continue to grow and is expected to record a CAGR of 9.8% from 2024 to 2028. Given these statistics, there could not be a better time for brands to work towards creating and building customer loyalty in Vietnam. In this article, we will dive into the changing customer behavior in Vietnam and the opportunities it presents for brands to kickstart their customer loyalty journey. 

Customer Behaviour in Vietnam

• Vietnam consumers have been optimistic, demanding, and discerning about their value-based purchases despite the economic challenges. They have shown an increased inclination towards spending on premium products over mid-level goods. This is apart from the core products like groceries, medicines, fuel, beauty products, etc., which are essentials in every region. 

• Vietnamese consumers are also showing an increased preference for non-cash payment, and if businesses do not have a digital payment system available, they will likely lose consumers. 

• Recently, there has been an increased dependency on smartphones and the internet among Vietnamese consumers, ushering in a new era of digital transformation in the country. A study reported that 97% of the Vietnamese population possesses a smartphone, and around 79% have internet access. These stats display the urgent need to switch from traditional loyalty programs to a more digitally enhanced loyalty program. 

• The report also highlighted how Vietnamese consumers are open to trying new products. This means that if brands develop more differentiated and unique products, there is a high chance of reception from Vietnamese consumers.

Loyalty Opportunities to Tap Into

Localization

Vietnam is a country rich in culture and heritage, and brands that embrace this diversity by localizing their products or services can foster a deeper connection with Vietnamese consumers. Whether it’s adapting marketing messages to resonate with local customs and traditions or offering products tailored to specific regional preferences, localization shows that a brand understands and respects the nuances of Vietnamese culture. This helps build trust and creates a sense of belonging among consumers, ultimately leading to stronger brand loyalty. One of Capillary Technologies’ Fortune 500 clients was able to better connect with their customers and win their trust emotionally by adding localization to their mobile loyalty app.

Personalization

In today’s hyper-connected world, consumers expect personalized experiences that cater to their individual needs and preferences. By leveraging data analytics and AI-driven technologies, brands can gather insights into consumer behavior and preferences, allowing them to deliver tailor-made experiences. Whether it’s recommending products based on past purchases, sending personalized offers and discounts, or addressing customers by name in communications, personalization helps build deeper relationships with Vietnamese consumers by showing that the brand understands and values its uniqueness.

Premium Services

With Vietnam’s growing economy and a rising middle class, there is an increasing demand for premium products and services. Brands that offer exclusive or premium services, such as VIP memberships, priority customer support, or luxury experiences, have a unique opportunity to tap into this affluent market segment.

By providing exceptional value and catering to the discerning tastes of Vietnamese consumers, brands can differentiate themselves from competitors and build a loyal customer base willing to invest in quality. 

Omnichannel Experiences

Brands integrating their physical stores, e-commerce platforms, social media channels, and mobile apps to provide a cohesive and convenient shopping journey will stand out in the Vietnamese market. This means offering features like click-and-collect, in-store pickup for online orders, synchronized inventory across channels, and personalized online and offline recommendations.

By enhancing omnichannel experiences, brands can meet the evolving needs of Vietnamese consumers and build lasting loyalty by making shopping more convenient and enjoyable.

Digital Transformation

As mentioned, Vietnam has increasingly become dependent on digital transformation over the last few years. Whether incorporating digital wallets and payments or switching to loyalty-based apps, brands have many options to leverage this trend to drive customer engagement and retention.

Digital loyalty programs offer greater convenience and flexibility for consumers, allowing them to easily track their rewards, receive personalized offers, and engage with the brand across multiple touchpoints. 

By collecting and analyzing customer data through digital channels, brands can gain deeper insights into consumer behavior and preferences, enabling them to tailor rewards and incentives effectively. Digitization also enables brands to implement gamification elements, such as points, badges, and challenges, to make the loyalty experience more interactive and engaging for Vietnamese consumers. 

Social Commerce

Brands in Vietnam can harness the burgeoning growth of social commerce to bolster customer loyalty through targeted advertising, engaging content, and exclusive perks for loyalty program members. By strategically deploying targeted ads on social media platforms, brands can attract new customers and effectively engage existing ones by showcasing personalized offers and promotions.

Leveraging interactive content such as live streams tailored specifically for loyalty program members enhances their sense of exclusivity and belonging, fostering stronger relationships with the brand. Through a comprehensive approach that integrates social commerce with customer loyalty initiatives, brands can capitalize on the evolving digital landscape in Vietnam to cultivate lasting connections and drive business growth.

Trust Capillary to Grow Your Brand in Vietnam

Capillary has worked with several major brands in Vietnam and helped them scale their customer loyalty. Contact one of our loyalty experts to kickstart your journey toward long-lasting customer relationships and drive business growth! 

Share

With a knack for creating engaging content and crafting effective social media campaigns, Anjali wants to make it her mission to leverage the power of content as a strategic marketing tool for businesses. While she is not working, she is either binging movies or writing about them on her blog.