Enhancing Customer Loyalty in the UAE: Effective Strategies for Banks

In a rapidly evolving technological landscape, where accessibility is becoming increasingly seamless and a surge in digital tools is empowering companies to better serve their customers, a new wave of trends in customer engagement is emerging.

In an era where personalization has shifted from a premium offering to a necessity, companies must adopt strategies to revitalize, refresh, and reimagine their offerings, aiming for profitability, differentiation, and elevated customer engagement.

In saturated loyalty markets like the UAE, consumers have become more discerning in their choices of brands, services, and products. Faced with a multitude of apps and reward programs from various companies, widespread adoption of loyalty programs has led to reward fatigue, primarily due to the overwhelming number of available options.

Our research indicates that more than half (58 percent) of consumers in the UAE prefer an omnichannel customer experience. To meet this demand, companies need to empower their customers by evolving existing products and services into an expanded portfolio that caters to their specific in-the-moment needs. The key is to seamlessly deliver value across interconnected lifestyle ecosystems. Saudi Arabia stands out with its ambition to stay ahead of the loyalty program evolutionary curve and embrace the latest technology trends. Both markets prioritize customer satisfaction, resulting in an abundance of choices for consumers.

How does this affect the financial services sector, and what strategies can banks employ to enhance customer engagement?

To optimize customer engagement and loyalty, banks should establish a unified view of the customer. This strategic imperative involves creating a unified loyalty program while building a comprehensive 'banking ecosystem' to drive customer engagement and loyalty. Banks must fully embrace loyalty, extending it beyond traditional boundaries. Loyalty should no longer be confined to a specific product or service but should encompass the entirety of the bank’s ecosystem.

Furthermore, banks should delve into their customers’ behaviors and characteristics. They are likely to discover that purpose, community, and sustainability play a more significant role than ever. To be at the core of a financial institution, a customer engagement and loyalty strategy must align with the bank’s values.

Collinson, a global leader in travel experiences, loyalty, and customer engagement solutions, collaborates with the world’s leading financial brands to help them retain and expand their customer base through strategic reward and benefit strategies that are both customer and data-centric.

With over 35 years of experience, Collinson has partnered with more than 1,400 banks worldwide, providing meaningful travel experiences and fostering increased customer loyalty.

In the UAE, Collinson collaborates with leading banks, including First Abu Dhabi Bank, Raiffeisen Bank, Alpha Bank, Saudi National Bank, and Network International.

Source: Khaleej Times