More than two-thirds (68%) of UAE shoppers do not feel that they get anything in return for sharing their personal information with brands, according to a study by Global loyalty marketing agency, ICLP. 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 programmes.
The ICLP survey covered UAE consumers to understand how they felt about the risks and rewards of sharing their personal data with brands, and found that just 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 say their data was met 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. About 78% of Carrefour shoppers, 71% of Splash shoppers, and 73% of H&M shoppers says they did not feel like they got anything in return for sharing their personal data.
The survey results suggest that shoppers in the UAE see the risks of sharing their data as far outweighing the rewards. Most are not delivering the personalisation and special offers that brands feel that they deserve for sharing their personal information with a brand.
“Brands are increasingly aware of the need to know their customers better so that they can deliver more interesting and personalised 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 against more technologically advanced online-only retailers,” says Sanjit Gill, general manager – ICLP.
“However, our research shows that brands across the UAE are failing to deliver on this promise. Shoppers need 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,” he adds.
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