Electronic retailers leading the way in building loyalty with UAE shoppers

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Staff Report

Dubai: Almost half of customers at electronics retailers feel valued as individuals, performing best when compared to other retail sectors in the UAE.

According to new research by global loyalty experts ICLP revealed that 48 per cent of electronics retailer shoppers felt valued, compared to just 35 per cent for sporting goods shops, 34 per cent for fashion retailers, and 27 per cent amongst supermarkets.

Shoppers at electronics retailers, such as Jumbo Electronics, Apple, Sharaf DG and Jacky’s, also said that they feel more appreciated if they’re a regular customer, with 50 per cent agreeing that they felt  appreciated. Sporting retailers, such as Modell’s came in at a close second with 42 per cent, ahead of fashion retailer’s and supermarkets.

This study of UAE shoppers also looked into the reasons why some retailers were doing a better job of making their customers feel like they treated them as individuals. Results showed that electronics retailers are doing a better job of remembering what it is that their customers want. 33 per cent of customers at electronics retailers said that their shopping, payment, and delivery preferences were remembered, compared to just 23 per cent for sporting retailers, 21 per cent for fashion retailers, and 15 per cent for supermarkets.

Shoppers at electronics retailers are also more likely to be rewarded with offers that are specific to them, with 1 in 3 feeling that their rewards were tailored to them. However this still shows that all sectors have a long way to go when it comes to delivering true personalised rewards. Just 27 per cent of fashion shoppers said that rewards were personalised to them, with 26 per cent for sporting retailers, and 13 per cent for supermarkets.

Rewards are also being used to encourage recommendations and advocacy. 38 per cent of electronic retailer shoppers say that they are rewarded for recommending the brand to someone else, compared to just 29 per cent for fashion retailers, 29 per cent for sporting goods and a very disappointing 12 per cent for supermarkets.

ICLP also surveyed how well different retail sectors were performing when it came to customer care. Again, electronics retailers led the way, with 55 per cent of their customers saying that they trusted brands to put things right quickly when things go wrong. This compares to just 44 per cent for fashion retailers, 42 per cent for sporting retailers, and 38 per cent for supermarkets.

Finally, electronics retailers also took the crown for best use of personal data, perhaps why
customers believe they are delivering the best level of personalisation. 60 per cent of shoppers at electronics brands said that their personal data was used in ways that benefitted their shopping experience, compares to just 42 per cent for fashion retailers, 39 per cent for sports goods, and 31 per cent for supermarkets.

Sanjit Gill, General Manager at ICLP, commented: “Loyalty today is about more than simply a loyalty card or basic points programme. Instead, loyalty needs to be a strategy that runs through all departments and has buy-in from all levels. This also needs to include a long-term view that includes lasting support, guidance, and customer care. Customer experience is key to driving Loyalty as consumer demands are changing on how they want to be engaged by brands, this is why retailers need to continually review their programme strategy to ensure it is aligned and relevant to their customers. Whilst business performance metrics are still important, retailers cannot ignore the changing trends that are driving the ways customers shop and with whom.”

He continued, “Electronic retailers appear to be succeeding where other retail sectors are struggling because they are taking this longer-term view with their customers, ensuring that all shoppers are treated with respect and feel that they can trust the brand. Other sectors should sit up and take notice to ensure that they too are building strong and lasting relationships with their customers.”