GEC NEWS WIREA report released today by ServiceNow the leading digital workflow company, reveals that nearly every UAE consumer will abandon a brand after just one negative experience.
The new global survey of 18,000 consumers across 13 countries (including 1,000 in the UAE) also found the Gulf Cooperation Council (GCC) country’s shoppers to be the least loyal to brands. Some 85% of UAE consumers — 11 percentage points higher than the global average — said they are less loyal to brands than they were two years ago.
ServiceNow’s study on loyalty factors in the UAE revealed that cost is the primary driver, as 40% of consumers are inclined to switch brands for cheaper alternatives. Additionally, 73% reported increased spending compared to last year, with 54% attributing this to rising costs. When asked about their priorities for brands in the next year, 42% of respondents prioritized price reductions.
Another driver of declining brand loyalty is that UAE consumers place a high premium on customer service. 91% said they were likely to switch brands following a poor customer experience and 23% of UAE consumers said they are less loyal to brands than they were 2 years ago because they have had disappointing experiences with companies.
“Brands in the UAE need to be at the top of their game,” Ali Kaddoura, Country Manager – UAE at ServiceNow said. “And while cost is important, brands must pay attention to other aspects that can set them apart from competitors who are just a click or swipe away from the modern consumer. Service must include exceptional streamlined experiences, both human and automated, at every touchpoint along the customer journey.”
The research also uncovered some very interesting insights as it relates to the role of AI in customer service. While most companies are racing to invest in more automated channels like chatbots, 77% of UAE consumers said they wouldn’t engage with a brand using AI, for at least some services, with 32% citing the lack of personalization and 20% saying they don’t trust the answer they will get.
The findings also showed a preference for human-to-human interaction among UAE consumers. 58% said they’d like to see all brands offer full 24/7 customer service and 52% said they’d like to see a return to human-based customer service to minimize automated routes, in the next year.
