JEDDAH — Many brand loyalty programs are failing to deliver on the things that matter most to customers in Saudi Arabia, according to a new report published by global loyalty agency ICLP. The report, “Driving greater loyalty in the Middle East” identifies the “Loyalty Chasm”, the gap between what is important to customers in driving their loyalty and what brands are delivering. The new research commissioned by ICLP surveyed 600 consumers in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), with illuminating results. Loyalty programs remain a powerful way to win business and improve bottom-line results. 61 percent of KSA consumers choose to buy from brands with loyalty programs, and 60 percent tend to buy more from brands they are loyal to. The largest gaps between customer expectation and brand delivery where in the areas of personalization and relevance. KSA identified customized, relevant incentives and communications as important to securing loyalty. In KSA 63 percent of consumers rated customization as important, with 45 percent delivery and a 17 percent chasm. ICLP's report shows that, in a harsh economic environment, customers demand more than ever in return for their loyalty. In particular, customers expect more instant, flexible, and customizable rewards, available through modern mobile technology. In addition, customers expect instant rewards. In the KSA, 72 percent of consumers wanted instant rewards, but delivery of 57 percent left a chasm of 15 percent. Contrastingly, the smallest gap was found in the delivery of social media loyalty elements. While many brands perceive social media as very important in engaging with customers, only 20 percent of consumers had connected with brands they are loyal to on social media. In addition, the gap between perceived social media importance and brand delivery was just 6 percent. The findings of the report suggest that, while social media is not to be ignored, the most effective improvements to a Middle East loyalty program are found in making incentives and communications more relevant, personalized, and tailored. Dion Maritz, General Manager at ICLP says: “This valuable research proves the effectiveness of a loyalty program, but sheds new light on what consumers expect for their loyalty. More than anything else, consumers expect loyalty programs that are localized to the Middle East, and offer tailored communications and rewards. We have seen an ongoing trend in better customer segmentation, and that is where we will get the biggest results in loyalty.” — SG
