More blockchain-enabled rewards platforms in the UAE
According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market is expected to grow by 12.6% on annual basis to reach US$ 142636.8 million in 2022.
In value terms, the Loyalty Programs Market in Global has recorded a CAGR of 11.8% during 2017-2021. The Loyalty Programs Market in Global will continue to grow over the forecast period and is expected to record a CAGR of 12.2% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 126639.8 million in 2021 to reach US$ 225907.9 million by 2026.
Loyalty and reward programs are gaining market share in the Asia Pacific region. A large population, rapid digitalization, and consumers’ inclination towards rewards programs primarily supported the strong market growth in this region.
In the last two to three years, key economies such as India, China, Indonesia, and Singapore witnessed substantial demand for loyalty and rewards programs. Moreover, rising fintech start-ups are also expanding their market share through innovative product launches in this category. Consequently, the publisher expects the market to record strong growth in 2022.
In India, loyalty and reward programs have been used as strategies by brands and organizations, especially in the hospitality, tourism, aviation, and retail sectors. Presently, with the global economic slowdown, businesses, in order to retain their customers and ensure profit generation, have adopted customer relationship management techniques with a more aggressive approach to sustain profitable long-term relationships.
Therefore, loyalty programs are gaining popularity due to their ability to establish relationships with customers, drive product usage, repeat sales, and, most significantly, customer retention in India.
Adoption of loyalty and reward programs has been on a constant rise IN MENA
The adoption of loyalty and reward programs has been on a constant rise in the Africa & Middle East region over the two to three years. Several start-ups and global loyalty players are offering their innovative products to capture a larger market share in the region. Moreover, the adoption from different industries is also on the rise as more and more consumers are demanding customized rewards programs.
Customer loyalty landscape has developed rapidly across the UAE
Over the last three to four years, the customer loyalty landscape has developed rapidly across the United Arab Emirates (the UAE). Before the global pandemic outbreak, the country was witnessing a higher per capita income and was gearing up with its increasing population of foreign workers, growing tourism industry, and a large number of development projects. However, the impact of the Covid-19 outbreak, resulting in the closure of offline stores, brought major changes to the economy.
During the period of the global pandemic, an increasing number of consumers changed their shopping behavior. According to the Global Loyalty and Rewards Market Survey, nearly 95% of the consumers started to explore different brands and stores even for their regular day-to-day purchases. This resulted in a number of brands revisiting their loyalty and rewards programs initiatives to stay relevant in testing times of the global pandemic outbreak.
Online marketplaces are launching AI and blockchain-enabled rewards platforms in the UAE
Through innovative loyalty and rewards programs that are powered by artificial intelligence and blockchain technology, online marketplaces in the country are looking to disrupt the UAE retail landscape.
In February 2022, Aladdin.life, the online marketplace for mobile and broadband services, announced that the start-up is expanding to a smart, multi-sector, AI, and blockchain-enabled rewards and shopping platform. Notably, the new rewards platform offers customers 100% value back in the form of discounts on its online Reward store.
For every AED 1 spent on the purchase of telecom products and services from Aladdin.life or its retail partner network, customers get a discount of AED 1 on the Aladdin Reward store. Notably, the full value offered to the customers is in the form of Aladdin Reward Coins. Customers can trade these coins for discounts when shopping from the Reward store, which features consumer electronic products from different brands and retailers.
Other programs has been highlighted earlier on Unlock like smiles project of Etisalat
Global Loyalty Programs Survey expects more such rewards program launches over the next four to eight quarters as online marketplaces seek ways to acquire new customers and drive incremental revenue in the UAE.
