We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 30 Dec 2013 01:25 PM

Font Size

- Aa +

UAE, Saudi loyalty programmes 'failing to deliver'

Survey says many brands don’t deliver on promises to consumers in Gulf states

UAE, Saudi loyalty programmes 'failing to deliver'
(Photo for illustrative purpose only)

Many brand loyalty are failing to deliver on the things that matter most to customers in the UAE and Saudi Arabia, according to a survey of 600 consumers.

A new report, Driving Greater Loyalty in the Middle East, by global loyalty consultants ICLP, found a gap between what was important to customers in driving their loyalty and what brands were delivering.

It found of the 600 consumers surveyed in the UAE and Saudi, 63 percent of UAE respondents and 61 percent those from Saudi chose to buy from brands with loyalty.

However, it identified gaps between customer expectation and brand delivery, especially in areas of personalisation and relevance.

Both regions identified customised, relevant incentives and communications as important to securing loyalty.

In the UAE, 66 percent of consumers felt customised rewards would win their loyalty, though they believed only 44 percent of brands delivered this.

Meanwhile, 62 percent of Saudi consumers rated customisation as important, while saying only 45 percent of brands delivered on this.

The report said customers demanded more in return for their loyalty, notably more instant, flexible, and customizable rewards, available through modern mobile technology.

In addition, customers expected instant rewards. In the UAE, 74 percent of respondents felt instant rewards were important, while only 54 percent of brands delivered. The statistics were 72 percent and 57 percent respectively for Saudi respondents.

Dion Maritz, General Manager at ICLP said the research shed new light on what consumers expected for their loyalty.

“More than anything else, consumers expect loyalty programmes that are localised to the Middle East, and offer tailored communications and rewards,” he said.

“We have seen an ongoing trend in better customer segmentation, and that is where we will get the biggest results in loyalty.”

Arabian Business digital magazine: read the latest edition online

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.