According to Adyen retail report around 74 per cent of shoppers in the UAE feel that their favourite brands are not rewarding them for their loyalty.
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GLOA recent survey conducted by Adyen, a global financial technology platform, reveals that despite the significant growth of e-commerce in the post-pandemic period, the majority of UAE residents still prefer shopping for groceries, clothing, and furniture at physical stores. However, when it comes to technology, beauty products, and booking holidays or entertainment, residents tend to opt for online shopping.
The survey, which included responses from 1,000 consumers and 500 retailers in the UAE, also examined payment preferences. It found that card payments are the most popular choice for in-store purchases, followed by cash, QR codes, direct debit, and digital wallets.
One noteworthy finding is that retailers have struggled to meet shoppers’ expectations regarding loyalty programs. The survey indicates that 74% of UAE shoppers feel their favorite brands do not adequately reward their loyalty, leading to a decrease in customer loyalty for 37% of retailers. To regain loyalty, 75% of brands are offering year-round discounts. Additionally, 69% of consumers expressed that they would be more loyal to retailers that allow them to buy online and return in-store, while 64% stated that they would have a better shopping experience if they could start shopping in-store and complete the purchase online, or vice versa.
Furthermore, UAE consumers desire more discounts from retailers (78%) and expect businesses to remember their preferences and past shopping experiences for a more personalized browsing experience (67%). However, retailers are facing challenges in delivering on these expectations, with 58% finding it difficult to categorize customers.
The survey also highlighted that 80% of UAE consumers spend more time searching for the best deals and prices, while 30% wait for special events like Black Friday before making a purchase. In response, 52% of UAE merchants believe they need to offer discounts throughout the year due to the impact of inflation.
Interestingly, 69% of shoppers confirmed that they would continue buying from a brand that provides an enjoyable experiential retail experience. Therefore, as retailers strive to offer innovative and seamless shopping experiences, customers are likely to reward them with their loyalty.
Download report here.
