Loyalty Blogs

Consumer behavior is rapidly changing, particularly in the UAE, which is now an ideal location for innovation given the presence of a digital-first mindset and the burgeoning retail sector. Consumers spend a lot more time online, shopping in more ways than one. Brands, therefore, must think anew about engagement and retention with their customers.  

This blog discusses how behavioral loyalty programs are gaining importance in the UAE, especially because brands want to create meaningful and engaging experiences that go above mere transactions.  

What is Behavioral Loyalty?  

Behavioral loyalty recognizes and rewards customers for actions other than the purchase points, and it develops deeper connections as it encourages things like giving feedback, engaging with the content, or keeping consistent interaction with the brand.  

By employing behavioral loyalty programs, companies can:  

• Segment customers according to engagement level.  

• Reward occasional buyers, reviewers, or survey takers.  

It is a very strategic way that enhances the bonding of customers to the brands for consistent engagement in between purchases as well.  

UAE Consumer Landscape: A View  

The UAE’s retail market was valued at approximately $138 billion in 2023 and was on a growth trajectory, projected to reach $219 billion by 2032. Factors like rising incomes, an influx of expatriates, a thriving tourism sector, and high-profile events like the Dubai Expo are fueling this growth.  

Although this expansion is ongoing, 95% of UAE consumers have adapted to altering their shopping behavior, which indicates a desire to try more new brands and outlets. This means an opportunity and challenge for the business to innovate loyalty strategies that stand out in a competitive environment.  

How Behavioral Loyalty Aligns with UAE Trends  

Behavioral loyalty programs can place the UAE retail businesses right in perfect sync with the rising trends. Let’s have a quick look.  

1. The Digital Shopping Boom 

With 71% of UAE consumers incorporating digital aspects into their purchase experience, the dominance of e-commerce remains a trend. Online shopping has reached a point of becoming indispensable through the ease of clicking an order button.  

Here’s what you can do:  

• Omnichannel loyalty programs reward online engagement.  

• Bonus points can be offered if loyalty accounts are linked to online orders.  

• Reward for activities such as writing reviews, visiting specific pages, or watching videos about products. 

2. Role of Physical Stores 

Despite the digital shift, UAE consumers still value the tactile experience of shopping in physical stores, especially for categories like fashion and electronics. Dining experiences also remain a cornerstone of retail culture.  

Here’s how you can boost customer engagement.  

• Reward in-store activities like check-ins or participation in events.  

• Offer personalized services like exclusive shopping slots or assisted shopping for premium customers.  

• Combine convenience and engagement with options like pre-ordering and in-store pickups.  

3. Local is the New Global 

Supply chain disruptions and increased awareness of the conscious consumer are shifting the trend for UAE buyers toward purchasing locally. Now, more than a third of consumers prefer the same products and services to come from local resources, especially within the dairy and meat categories.  

• Modify reward programs to increase points for locally branded purchases.  

• Promote supporting the local communities and businesses with a deeper bond. 

4. Easy Payment 

Digital wallets like Apple Pay and Google Wallet have changed the face of payments in the UAE. Today, customers want easy and flexible payment methods.  

This is how you ensure maximum success.  

• Make sure your website or app is ready to accept multiple digital payment modes.  

• Offer exclusive discounts or loyalty points for using specific payment options.  

5. A Growing Appetite for Discounts 

Despite the UAE being one of the wealthiest countries, price sensitivity has increased post-pandemic. Consumers are becoming more attracted to discounts and tailored offers.  

Here’s an actionable strategy:  

• Add personalized deals to loyalty programs to make customers feel appreciated.  

• Gamify the coupon and discount experience to create engagement between purchases.  

Behavioral Loyalty Program in Action  

Here’s how brands can implement innovative strategies for behavioral loyalty:  

Sports Retail: Encourage customers to use purchased products by providing access to educational content (for example, fitness tips or a streak challenge for working out) and reward them for engaging with it.  

Apparel Stores: Delight the customer through personalized deals on complementary items after a purchase; repeat visits will be likely.  

Supermarkets: Provide exclusive deals through QR codes surrounding favorite products. Loyal shoppers will benefit immediately due to such an approach.  

Why Behavioral Loyalty is Important in the UAE  

In a dynamic market like the UAE, the traditional loyalty programs are often insufficient to build real engagement. A behavioral loyalty program is a more forward-thinking approach that enables brands to stay relevant by rewarding meaningful actions that build trust and loyalty.  

Innovation, adaptability, and customer-centricity are what will make any business thrive in this landscape. Behavioral loyalty programs can help create memorable, impactful experiences that will keep customers coming back for more.  

Ready to shake up your loyalty strategy?  

Novus is an AI-powered loyalty software that helps brands build highly relevant loyalty programs while keeping customers’ behavior in top consideration. We have helped brands engage their customers through personalization and real-time customer analytics. As a leading loyalty software in UAE, we are taking customer engagement and retention to a new level.  

Engage with us to see how customized behavioral loyalty programs can advance your brand within the UAE’s competitive market.