Tuesday 3 October 2023

Mena consumers ‘world's most brand loyal’

Dubai, September 3, 2012

While one-fourth of consumers in the UK and the US admitted brand influences on their purchasing decisions, the percentage of people displaying brand loyalty was significantly higher in the region, a report said.

Twenty-nine per cent of the consumers in Saudi Arabia stated brands influence their buying, the figures were 31 per cent in the UAE, 33 per cent in Bahrain, 34 per cent in Jordan and 35 per cent in Oman, according to Ernst & Young’s 2012 Mena Customer Barometer.

The report also reveals that consumers are now harder to define, understand, and please than ever before and that Mena brands are facing challenges to adapt to ‘Chameleon Consumers’. Five broad trends emerged from the survey, covering ten different products and services:

1. Traditional market segmentation no longer holds true. The ‘chameleon’ consumer has conflicting preferences and facets, which need to be accommodated.

2. Brands are increasingly likely to influence purchasing decisions within emerging markets, unlike the mature markets where lower loyalty is challenging companies.

3. Personalized communication and service is a priority. There are huge opportunities for organizations that can harness digital consumers through closer ‘community’ vehicles, such as social media and other digital channels.

4. Consumers are now equipped with all possible product, price and stock information and can simply bypass retailers that don’t engage consumers with relevant information and a compelling purchase pitch.

5. These new empowered customers want a greater say in how they experience service and to be active ‘co-creators’, not passive consumers.

Ross Maclean, customer advisory leader, Ernst & Young Mena, said: “The survey finds that in recent years, customer behavior has changed beyond recognition.  In becoming a ‘chameleon’, the consumer has undergone a radical ‘metamorphosis’ and this change has significant consequences for all customer-centric organizations.”

The challenge of categorizing consumers is demonstrated by differences in consumer behaviour between regions. The survey reveals, for example in Jordan, 74 per cent of consumers want to pay by cash, while in the UAE the figure is just 39 per cent.

In Bahrain, 21 per cent prefer to shop online, while in Lebanon and Jordan the figure is half that, at 10 per cent, and in Kuwait it is 12 per cent. Adding to the complexity is the very large number of transient expat workers in Mena countries, all with different habits and preferences.

Despite Mena’s high numbers, the survey uncovers a regional split in brand loyalty. In Mena and other emerging markets, brands are increasingly likely to influence purchasing decisions, while brand loyalty is on the wane in the West.
“While brand loyalty in Mena is much stronger than in other global geographies, there is still an anomaly between loyalty to products and loyalty to services. This highlights the need for organizations to recognize the importance of customer experience in driving customer acquisition, growth and retention. Customer experience is the new brand,” said Maclean.
Customers have turned their backs on established media channels and are electing their own spokespeople. The survey identifies a divide between mature and less mature markets’ perceptions of the value of social media.

When asked to rate the medium’s worth as an objective tool for finding and validating information, globally, consumers gave it an unexceptional 5.4 out of 10; however, the more positive consumers of the Mena region responded with 6.3, as did China.

Maclean added: “Mena consumers have a new voice, they are amongst the most digitally engaged on the planet and their expectations are higher than they have ever been. Through social media, blogs, brand communities and other online forums, consumers are sharing their views, preferences, likes and dislikes with anyone who cares to listen.”

The report reveals that the web has inverted the global power relationship. It has given consumers the means to have it all their own way. In the Mena region, 65 per cent go online at least once during the shopping process — above the global average of 62 per cent, and above India (64 per cent), though slightly behind China (68 per cent).

Within the Mena region however, there are some interesting country variations in willingness to shop online: in Jordan, 43 per cent buy predominantly in–store, while just 10 per cent shop mainly online.

However, in the UAE, 38 per cent say they shop mainly in–store and 21 per cent online.

Consumers now want bespoke attention whenever they deal with a product or service provider, all the way through the shopping experience — from innovations they help shape, to immediate rewards for loyalty.

Payment is one area where consumers want it their way. According to the survey, 39 per cent of consumers globally prefer to pay by cash, whereas in Mena, 60 per cent opt for cash, much higher than the global average of 39 per cent.

“The trends identified in our survey have urgent implications for businesses in Mena. An understanding of these implications, supported by the solid principles of effective marketing, will help organizations navigate the new consumer environment,” Maclean said.

“Engaging in dialogue with consumers, making service personal and providing an end–to–end brand experience are essential for the success of any business,” he concluded. – TradeArabia News Service

Tags: Mena | Ernst & Young | retail | Survey | consumer | Brand loyalty |

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