Dhruv Verma, the Founder and CEO of Thriwe, recently discussed the growth trajectory of the UAE's loyalty programme market. From 2019 to 2023, the market saw a compound annual growth rate (CAGR) of 11.8 per cent, culminating in a $1.57 billion valuation in 2024, with an annual increase of 10.4 per cent. This upward trend is expected to persist, with a projected CAGR of 8.9 per cent from 2024 to 2028, potentially reaching $2.2 billion by 2028, according to industry experts.
Verma highlighted that this rapid evolution is driven by technological innovations, stricter regulatory environments, and shifting consumer behaviors. Companies are increasingly adopting personalized, technology-driven solutions, with a growing focus on cashback options to boost consumer engagement. Loyalty programmes in the UAE are designed to enhance consumer interaction through personalized rewards, exclusive benefits, and seamless digital experiences, fostering deeper brand connections and making consumers feel valued through tiered membership systems.
Key strategies employed by these programmes include leveraging customer data for personalized rewards, implementing tiered membership systems with escalating benefits, and integrating mobile apps to simplify point tracking, reward redemption, and access to tailored offers. Gamification elements, social media integration, and cultural relevance further bolster consumer engagement. However, challenges such as information overload, complexity, and data privacy concerns must be addressed to ensure effective loyalty programmes.
The future outlook for the UAE's loyalty programme market is optimistic, with anticipated growth at a CAGR of approximately 9.2 per cent, reaching around $2.23 billion by 2028. Factors driving this growth include intensified competition, technological advancements, and the rising importance of omnichannel strategies. As consumer behaviors evolve, brands that adapt to these trends are poised to enhance customer loyalty and engagement.
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