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UAE customers demonstrate highest levels of brand loyalty worldwide

Positive attitudes to AI considered a key enabler as UAE brands build better omnichannel experiences

Published: Tue 5 Nov 2024, 8:00 AM

Updated: Thu 14 Nov 2024, 3:48 PM

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With 83 per cent of UAE respondents considering themselves loyal to a particular brand, people in the country achieved the highest loyalty ranking across the globe, a study showed.

This year’s international SAP Emarsys Customer Loyalty Index marked the UAE’s debut in the survey, which saw the US moved to second place for the first time, with a loyalty score of 69 per cent.

Respondents from the UAE also demonstrated some of the most positive attitudes towards artificial intelligence (AI), which SAP Emarsys analysts believe could be a key factor behind the top-ranked loyalty levels. AI makes it easier for brands to build better, more personalised omnichannel experiences, enabling them to nurture loyal customers.

The survey also delivered interesting insights into loyalty drivers among UAE consumers. High loyalty drivers include consistent branding (44 per cent), brand longevity (30 per cent), market leadership (30 per cent) and if products are trending on social media (29 per cent). The most significant negative impact came from poor customer service, cited by 56 per cent of respondents, followed by increased prices (55 per cent), a drop in quality (46 per cent), false or deceptive advertising (33 per cent) and a brand having no regular or meaningful/personalised discounts (33 per cent).

Unlike other regions where older generations tend to exhibit greater loyalty, younger generations in UAE showed stronger brand allegiance in the survey. This variation highlights the need for brands to focus on cultivating loyalty among younger consumers, ensuring lasting customer relationships by engaging them early and consistently, since they are the most committed demographic in the UAE. Regardless of whether consumers care deeply about a brand, the key to standing out in the long term lies in better personalisation, more relevant content, and offering unique perspectives tailored to individual interests, according to the Customer Loyalty Index results.

Marwan Zeineddine, managing director of SAP UAE, says, “Loyalty can have a significant impact on brands’ business objectives, but today, the nature of loyalty is changing. In 2024, AI empowers marketers to create incredible connected experiences, making it easier for people to discover a wide array of platforms; reducing the barriers to spending their money elsewhere.”

Zeineddine added: “With the process for switching brands and services increasingly streamlined, marketers in the UAE must ask themselves, what does loyalty look like from the customer perspective? How do today’s customers think and feel about loyalty? And what does it take to ignite true loyalty, then secure it long-term? These are questions that we’ve asked customers in our SAP Emarsys fourth annual Customer Loyalty Index research.”

For enterprises looking to stay ahead in an increasingly competitive landscape, SAP Emarsys leveraged AI to optimise the entire marketing process — from customer segmentation to campaign execution and performance analysis. AI identifies the most profitable under-served audience segments, representing new opportunities across different life-cycle stages, enabling highly targeted campaigns delivered at the ideal time and through the most effective channels.

Recognising that an omnichannel marketing strategy is key to unlocking true loyalty, global brands are making every interaction count by creating personalised, two-way conversations. This results in the consumer’s life stage becoming clearer, and with each future interaction, the brand can better predict the customer’s next needs. Customers now recognise the value exchange — when they share information like an email address, or birth date, they expect something meaningful in return, such as loyalty points or VIP perks like early access to new products.

Marketers are increasingly turning to AI to foster long-term loyalty and reach new audiences. According to separate recent SAP Emarsys research, the majority of marketers (85 per cent) agree that AI will be crucial for boosting customer engagement in 2024, and most (80 per cent)* have already experienced a rise in engagement after implementing AI-powered personalisation. AI enables brands to stay competitive by quickly adapting to changing customer expectations.

Sara Richter, chief marketing officer at SAP Emarsys, said: “It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’—they want meaningful and memorable experiences. The key to delivering that is personalisation for every customer. AI is the only practical solution for providing genuine one-to-one interactions at scale, across every channel, and at the right moment. Brands that embrace AI-powered personalisation are far better equipped to keep customers engaged, especially when attention spans are short, and demands are high.”



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