Inside Loyalty in #KSA: Strategies, Challenges, and Innovations

The competition for customer loyalty, transactional growth, and platform screentime is more intense than ever in Saudi Arabia. As the General Manager of the ENTERTAINER Saudi Arabia, I've been grateful to not only witness these dynamics firsthand but, alongside my dedicated team, actively shape and navigate these waters to drive our strategic vision forward.

INTRO

The concept of customer loyalty has gone beyond just transactional exchanges. Brands are constantly evolving, seeking innovative ways to connect with consumers in a more meaningful way. I have been a very big advocate of rewarding through experiences, As showcased in this article, we'll unpack the unique duality of the ENTERTAINER's role in the loyalty and reward landscape, confront the challenges faced in this dynamic market, and unpack the successes achieved through our strategic collaborations with large companies across KSA.

The ENTERTAINER's Dual Role in Loyalty & Reward

At the ENTERTAINER, we balance two essential roles. Firstly, as a direct consumer-facing and centric platform, we offer thousands of 'buy one get one free' offers across six lifestyle categories, combining savings with enriching lifestyle experiences. Secondly, our collaborations with industry leaders enable us to craft bespoke loyalty and reward programmes. This dual role—being both a service provider and a direct player—affords a unique perspective and vantage point in the loyalty space. Given the rise of "Loyalty apps" and attractive reward programs, the real question remains: how can a brand genuinely differentiate?

First, let's have a look at how we are

Facing the KSA Market Challenges Head-On

Working in the loyalty and rewards space in Saudi Arabia is not easy. The main challenge is Keeping up with the ever-changing preferences of our diverse customer base. But It's not just about which merchant or offer they prefer.

What customers in Riyadh want will be different from those in Jeddah. And while some of our users are looking for luxury experiences, others are more budget-conscious. What's appealing to a family will not be the same for singles or couples.

We tackle these challenges with the help of Data. By really diving into the numbers and doing our research in customer behaviour we can spot trends and stay ahead.

Some might think having 1000s of offers is the way to go. But it's not just about having lots of offers; it's about having the right ones. The ones that our customers will use and love. Because at the end of the day, it's the quality of the offer, not the quantity, that matters.

Working with different brands has its own set of challenges. Every brand is unique and brings something different to the table. It's like putting together a puzzle where all the pieces have their unique shape. But with good communication and market expertise, we've created programs that our customers love, like "Raqi by Mobily".

Despite all these challenges, we remain committed to our customers. We're always learning and adapting to ensure we're offering them the best offers and experiences possible.

some of our corporate collaborations

Understanding the Modern traveller with the Saudi Tourism Authority

Our collaboration with the Saudi Tourism Authority's Visit Saudi app offers good insights. Whilst 77% of consumers partake in retail loyalty programmes, many are craving more authentic experiences[^1]. With the Saudi Tourism Authority, we see that the domestic and international traveller seeks special offers in unique, cultural and diverse experiences joining programs for exactly this purpose to enjoy travelling in a more financially sustainable way, the end consumer will spend his budget but wants it to go that extra mile, This underpins a broader trend: loyalty extends beyond mere points or cashback but real-life experiences.

Key Player Differentiations: Alinma Bank's Approach

Alinma Bank's approach to loyalty perfectly captures Dr. Robert Cialdini's wisdom: "What's focal is causal." In the crowded banking sector, Alinma Bank stands out by:

1. Fostering Genuine Relationships: Personalised loyalty and reward solutions, tailored to individual needs, create lasting connections with the creation of a hybrid model between the loyalty AKTHR program and a reward program Alinma ENTERTAINER. we can see genuine loyalty being built with the end customers with a yearly increase in yearly usage of up to 48%.
2. Empowering with Digital Tools: The Alinma ENTERTAINER solution caters to the 72% who engage only with tailored marketing messages[^2]. We hyper-personalise all our communications to ensure we yield the highest level of engagement across the Alinma end customers ensuring that they are always seeing relevant content to them and that we stay relevant to the customer's likes.

1. Championing Ethics and Transparency: In a world where 94% of consumers lean towards transparent brands[^3], we take extra care to ensure our restrictions and terms of use are clear and straightforward. We strive never to mislead our end customers. Ultimately, our strategy is simple and clear: being customer-centric and providing the best experience is the key to success.

Mobily: Navigating the 'Earn and Burn' Phenomenon in Telecom

While many are leaning into the "earn and burn" model, aiming to consolidate various services into a singular "super app" environment, Mobily takes a different route. They believe in maintaining undiluted focus and excellence in their offerings.

A testament to Mobily's vision is "Raqi by Mobily", in partnership with The ENTERTAINER. This service grants Mobily Raqi users access to a wide selection of experiences ranging from fine dining to luxurious hotel stays and sought-after activities throughout the Kingdom of Saudi Arabia.

Beyond Monetary Incentives

Warren Buffett's insight, "Price is what you pay. Value is what you get," remains the gold standard. While monetary incentives, like discounts and cashback, might attract customers initially, it's the intangible experiences and emotions associated with a brand that leave a lasting impact.

For instance, in KSA, cultural experiences are deeply cherished. Consider the Al-Janadriyah Festival, one of the kingdom's most significant cultural events. While attendees may receive promotional Offers or added value deals, it's the experience of diving into Saudi traditions, watching dances, and tasting traditional dishes that become the memorable card.

Our goal should always be to deliver unparalleled value through the provision of experiences and top-tier customer service where consumers feel a genuine connection beyond transactional interactions.

In Summary

Navigating the loyalty space is not easy with multiple and various programs across different industries, it's evident that understanding, genuine relationships, and providing consistent value are essential. Taking from Maya Angelou's wisdom "People will never forget how you made them feel."

References:

1. Accenture, "Global Consumer Pulse Research."
2. SmarterHQ, "Privacy & Personalization Report."
3. Label Insight, "Transparency ROI Study.

#CustomerLoyalty #DigitalInnovation #SuperApps #CustomerExperience #TransparencyInBusiness #ValueDrivenLeadership