Building Loyalty Programs That Drive Long-Term Customer Engagement Your Brand

December 18, 2024

Author: Mr. Omar Abedin, Co-Author: Hamna Asghar

In today’s competitive market, customer loyalty has evolved from being a desirable asset to a critical differentiator.

In the Gulf Cooperation Council (GCC), a region characterized by diverse demographics, high expectations, and a cultural emphasis on trust, loyalty programs are essential.

These programs foster trust, retain customers, and drive repeat spending by offering personalized rewards and premium experiences.

With rapid digital adoption and a focus on customer lifetime value, loyalty programs have become pivotal for building long-term connections and sustaining growth in the GCC.

Consumers in this region seek not just transactional benefits like discounts, but also meaningful relationships with brands that align with their values.

By blending behavioral loyalty (repeat purchases) and emotional loyalty (brand affinity), businesses can cater to these unique expectations.

As businesses navigate the complexities of the GCC market, this article explores how loyalty programs can be designed and executed effectively, combining proven marketing theories with real-world examples to create lasting impact.

GCC-Specific Loyalty Programs: Theories in Action

SHARE by Majid Al Futtaim: Creating Ecosystem Value

The SHARE ^[1] program by MAF exemplifies the Value Exchange Theory, delivering mutual benefits across its ecosystem. Members can earn points while shopping at Carrefour, dining in restaurants, or enjoying entertainment like VOX Cinemas, and redeem them in any of these categories. This seamless integration of rewards ensures customers perceive significant value, keeping them engaged across various touchpoints.

Through the STP (Segmentation, Targeting, Positioning) model, the program appeals to families, tourists, and frequent shoppers by offering diversified rewards.

SHARE showcases the power of ecosystem-based loyalty strategies to foster retention and encourage repeat spending.

Etihad Guest: Tiered Rewards for Frequent Flyers

Etihad Guest^[2] aligns with Maslow’s Hierarchy of Needs, offering premium experiences such as lounge access and priority boarding to cater to members’ esteem and belonging needs. Additionally, the program leverages the AIDA Model by capturing Attention through targeted promotions, sustaining Interest with personalized communications, building Desire with exclusive rewards, and driving Action with an intuitive interface.

By balancing global travel rewards with localized perks, Etihad Guest ensures high-value customers feel appreciated while offering entry-level perks to attract broader participation, making it a perfect example of tiered loyalty in action.

Ooredoo Nojoom: Everyday Loyalty with Lifestyle Rewards

Ooredoo’s Nojoom program^[3] in Qatar integrates rewards into customers’ daily routines, reinforcing Customer Loyalty Theory through habitual engagement. Whether paying bills or shopping at partner brands, members earn points redeemable for travel perks and dining discounts.

The program also leverages Relationship Marketing by aligning rewards with local preferences, building deeper connections with its customer base. Nojoom exemplifies how telecom providers can enhance loyalty by blending utility with lifestyle benefits, ensuring relevance beyond core services.

Amber Rewards: Exclusivity for Luxury Shoppers

Al Tayer Group’s [^4] Amber Rewards fulfills Maslow’s Hierarchy of Needs by catering to customers’ esteem and self-actualization desires. The program offers bespoke rewards, personalized services, and invitations to exclusive events, creating a sense of prestige that extends beyond monetary value.

By fostering emotional loyalty, Amber Rewards delivers status-driven experiences that resonate deeply with affluent GCC consumers. This highlights the importance of exclusivity in building meaningful connections with high-net-worth individuals.

Hilton Honors: Loyalty at Every Step of the Journey

Hilton Honors effectively applies the AIDA Model to engage members at every stage. Attention is captured through global promotions, Interest is sustained with personalized offers, Desire is built with premium rewards like complimentary stays and upgrades, and Action is driven by an easy-to-use redemption system.

Through the Service-Profit Chain Model, Hilton ensures high-quality service delivery, enhancing customer satisfaction, loyalty, and profitability. This program meets the premium travel expectations of GCC consumers, particularly in affluent markets like Dubai and Abu Dhabi.

Shukran: Accessible Rewards for Value-Driven Shoppers

Landmark Group’s Shukran program appeals to middle-income GCC consumers by offering rewards across its fashion, home, and electronics brands. Rooted in Value Exchange Theory, Shukran provides a seamless earn-and-redeem system, ensuring consistent value for customers shopping across multiple stores.

The program encourages Behavioral Loyalty by rewarding repeat purchases with discounts and member-exclusive offers, driving cross-brand engagement while remaining accessible to a wide audience.

Leveraging Technology for Personalization and Engagement

In the digitally advanced GCC market, technology is a cornerstone of loyalty program success. By embracing tools like Big Data, AI, and omni-channel connectivity, businesses enhance personalization and build seamless customer experiences.

Big Data and AI for Personalization: Personalization has now become a consumer expectation. Brands like Carrefour’s MyCLUB use purchasing history to offer customized discounts, while platforms like Noon VIP suggest products based on browsing habits, creating an intuitive shopping experience.

Integrated Marketing Communications (IMC): Programs like Emirates Skywards ensure consistent messaging across all touchpoints—mobile apps, email campaigns, and in-flight announcements—enhancing engagement and retention.

Omni-Channel Connectivity: Programs like SHARE allow customers to redeem rewards seamlessly across digital and physical platforms, ensuring convenience and consistency.

Challenges and Innovations in GCC Loyalty Programs

Despite their potential, loyalty programs in the GCC face challenges, including high customer expectations, diverse demographics, and cost pressures. However, these challenges also create opportunities for innovation:

High Expectations: Programs like Hilton Honors address premium demands with region-specific perks like luxury amenities and free stays.

Diverse Demographics: Programs like Etihad Guest balance global rewards with localized perks, appealing to both local and expatriate audiences.

Cost Pressures: Multi-partner programs like SHARE reduce costs by spreading rewards across participating brands.

Attributes of Innovative Home-Grown Solutions

Sustainability: Programs like Carrefour GCC engage eco-conscious consumers with rewards for sustainable practices, such as using reusable bags.
Blockchain Rewards: Blockchain-based systems enable transparent, interoperable rewards, allowing customers to redeem points across multiple platforms.
AI-Driven Personalization: Platforms like Noon use AI to predict customer needs, offering proactive and real-time personalized rewards.

Final Thoughts

Loyalty programs in the GCC are no longer optional—they are a strategic necessity in a competitive and culturally nuanced market.

Programs like SHARE, Etihad Guest, and Amber Rewards demonstrate how businesses can integrate Maslow’s Hierarchy of Needs, Value Exchange Theory, and the AIDA Model to drive both behavioral and emotional loyalty.

As customer expectations evolve, businesses must innovate through sustainability, gamification, and advanced technology.

By aligning loyalty programs with local values and leveraging cutting-edge tools, GCC businesses can secure long-term customer loyalty, build stronger relationships, and sustain growth in an increasingly competitive landscape.

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[1] SHARE Rewards

[2] Etihad Guest

[3] Enjoy your Nojoom Points Rewards | Ooredoo Qatar

[4] Amber – Rewards Programme | Al Tayer Group