Global loyalty marketing agency ICLP reveals that more than two thirds (68%) of UAE shoppers do not feel that they get anything in return for sharing their personal data with brands. This presents a major challenge for retailers as they try to build stronger relationships with their customers and encourage them to join a growing number of loyalty programs.
ICLP surveyed UAE consumers to understand how they felt about the risks and rewards of sharing their personal data with brands, and found that only 41% trusted brands to treat their personal data with respect and use it in their best interests.
The results also varied between some of the UAE’s top brands. Just 46% of Splash shoppers, and 39% of Carrefour shoppers said that their data was treated with respect and in their best interests. The figure was even lower, at 32% with apparel retailer H&M.
Many brands were also not seen as rewarding enough. 78% of Carrefour shoppers, 71% of Splash shoppers, and 73% of H&M shoppers said that they did not feel like they got anything in return for sharing their personal data.
ICLP’s results suggest that shoppers in the UAE see the risks of sharing their data as far outweighing the rewards. Most are not delivering the personalization and special offers that brands feel that they deserve for sharing their personal information with a brand.
As part of the research, ICLP asked shoppers about how effectively they felt brands used their data and found that:
Brands don’t remember the purchases that shoppers have made in the past: 74% of UAE shoppers said that they didn’t find that brands remembered their previous purchases, something that is key for making future recommendations and understanding shopper behavior
Shopping preferences are not properly recorded: Three-quarters said that retailers did not remember their payment, shopping, or delivery preferences
Personalization is not being delivered: Only 28% of UAE shoppers found that they were given personalized and relevant product recommendation by brands
Rewards are not sufficiently tailored: Brands are also not using data to make their loyalty programs sufficiently personalized. Just 31% said that they were rewarded with offers that were tailored to them
Sanjit Gill, General Manager at ICLP, says:“Brands are increasingly aware of the need to know their customers better so that they can deliver more interesting and personalized experiences. Only by doing this can they hope to keep encouraging shoppers to visit on their trips to the mall and avoid becoming old and stale. This is particularly the case as they are now compared to more technologically advanced online-only retailers.
“However, our research shows that brands across the UAE are failing to deliver on this promise. Shoppers need to be able to trust that their personal data will be kept safe and used in interesting ways that will ultimately benefit them. Otherwise, shoppers will simply opt to remain strangers”.