(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Oct. 01, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia Loyalty Programs market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The loyalty market in Saudi Arabia has recorded a CAGR of 11.6% during 2019-2023. Saudi Arabia's loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 8.5% during 2024-2028. The loyalty market in Saudi Arabia is set to increase from US$1.04 billion in 2023 to reach US$1.59 billion by 2028.
The loyalty program landscape in Saudi Arabia is characterized by rapid evolution, driven by technological advancements, changing consumer preferences, and regulatory shifts. Companies adopt personalized and technology-integrated solutions while exploring cashback options to enhance customer engagement. The launch of innovative programs by major players signifies a competitive market focused on delivering value to consumers.
As the regulatory environment becomes more stringent, businesses must navigate these changes carefully to ensure compliance and maintain consumer trust. The future of loyalty programs in Saudi Arabia appears promising, with significant growth potential as firms continue to innovate and adapt to the needs of their customer base. Senior executives must monitor these trends, ensuring their loyalty strategies align with market dynamics and regulatory requirements to achieve sustained success.
Overview of Loyalty Program Trends
The loyalty program landscape in Saudi Arabia is undergoing significant transformation, influenced by changing consumer behaviours and market dynamics. Key trends shaping this market include.
Growing Popularity: Loyalty programs are becoming increasingly prevalent across various sectors, including retail, hospitality, and financial services. The desire for rewards and value drives consumer engagement, particularly in a competitive marketplace. Personalization and Data Utilization: Brands leverage data analytics to create personalized experiences. Tailored rewards and targeted communications enhance customer satisfaction and foster deeper connections, making personalization a key focus for loyalty programs. Technological Integration : Integrating mobile technology and digital platforms is transforming loyalty programs. Consumers can easily track their rewards, receive personalized offers, and redeem benefits through mobile apps, improving convenience and engagement. Sustainability Initiatives : There is a growing emphasis on sustainability within loyalty programs. Consumers are increasingly attracted to brands that demonstrate social responsibility and offer eco-friendly rewards, aligning with their values and lifestyle choices. Government Initiatives: The Saudi government is actively promoting loyalty programs to enhance employee productivity and engagement, as seen in the launch of initiatives like the DOAM program for government employees. This reflects a broader strategy to improve public sector performance and align with Vision 2030.
These trends indicate a dynamic and evolving loyalty program landscape that resonates with the diverse preferences of Saudi consumers.
New Loyalty Programs Launched in the Country
Recent months have seen the introduction of several innovative loyalty programs across Saudi Arabia, reflecting strategic responses to consumer demands.
Saudi Rewards Program: Launched by the Saudi Tourism Authority, this program aims to boost tourism by rewarding exploration of the Kingdom's attractions. Members can earn points for various activities, including shopping and dining, which can be redeemed for exclusive experiences and discounts. DOAM Loyalty Program: The Ministry of Human Resources and Social Development introduced the DOAM program to enhance employee engagement within the public sector. This initiative offers special deals and discounts through a network of service providers, benefiting over a million government employees. Nahdi Medical Company's Nuhdeek Program: This pharmacy chain has launched the Nuhdeek loyalty program, enabling customers to earn points on purchases and access health-related information through a mobile app. The program aims to enhance customer experience and retention in the healthcare sector. Al-Othaim Markets Loyalty Initiatives: Al-Othaim has revamped its loyalty program to offer more personalized rewards and discounts, enhancing customer engagement across its supermarkets and retail outlets.
These initiatives reflect a competitive landscape where businesses continuously adapt their loyalty strategies to meet the diverse needs of Saudi consumers.
Overview of Cashback Loyalty Program Trend
Cashback loyalty programs are gaining traction as a preferred alternative to traditional point-based systems in Saudi Arabia. Key aspects of this trend include.
Immediate Financial Benefits: Cashback programs provide instant rewards, appealing to consumers who prefer immediate gratification over delayed rewards associated with points. This immediacy enhances the attractiveness of these programs. Enhanced Value Perception: As consumers become more price-sensitive, cashback offers are viewed as a way to enhance perceived value, particularly in competitive sectors like retail and e-commerce. Cashback programs can effectively drive customer loyalty by providing tangible savings. Integration with Digital Payment Solutions: The rise of digital wallets and payment platforms has facilitated the implementation of cashback programs, allowing seamless transactions and easy reward redemption. This integration aligns with consumers' increasing reliance on digital payment methods. Market Differentiation: Companies utilize cashback programs to differentiate themselves in a crowded market, driving customer acquisition and retention through attractive offers. This strategy is particularly effective in sectors where competition is intense.
This trend underscores a shift towards more flexible and consumer-friendly loyalty solutions that cater to the evolving preferences of shoppers across Saudi Arabia.
Recent Regulatory Changes Impacting Loyalty Programs
The regulatory environment surrounding loyalty programs in Saudi Arabia is evolving, with significant implications for businesses.
Data Protection Regulations: Stricter regulations regarding consumer data collection and usage require loyalty programs to adopt transparent, permission-based models. Compliance with these regulations is essential for maintaining consumer trust and safeguarding personal information. Consumer Protection Laws: New laws safeguarding consumer rights may necessitate clearer communication regarding loyalty program terms and conditions, enhancing transparency and fairness. This regulatory focus ensures that consumers are fully informed about their rights and the benefits of participating in loyalty programs. Payment Services Regulation: Recent regulatory changes regarding digital payments may impact loyalty programs, particularly those linked to financial services. Companies must ensure compliance with these regulations to avoid penalties and maintain customer trust.
These regulatory changes compel businesses to adapt their loyalty programs, ensuring compliance while maintaining customer engagement and satisfaction. Companies must align their loyalty strategies with legal requirements while still delivering value to consumers.
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 117 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $1.14 Billion |
| Forecasted Market Value (USD) by 2028 | $1.59 Billion |
| Compound Annual Growth Rate | 8.5% |
| Regions Covered | Saudi Arabia |
Report Scope
This report provides in-depth, data-centric analysis of loyalty programs in Saudi Arabia. Below is a summary of key market segments.
Saudi Arabia Retail Sector Spend Value Trend Analysis
Ecommerce Spend POS Spend
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
Value Accumulated and Value Redemption Rate of Loyalty programs in Saudi Arabia
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
Loyalty Schemes Loyalty Platforms
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
Points programs Tier-based programs Mission-driven programs Spend-based programs Gaming programs Free perks programs Subscription programs Community programs Refer a friend program Paid programs Cashback programs
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Channel
Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
Seller Driven Payment Instrument Driven Others
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Retail
Diversified Retailers Department Stores Specialty Stores Clothing, Footwear & Accessories Toy & Hobby Shops Supermarket and Convenience Store Home Merchandise Other
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
Card Based Access Digital Access
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
B2C Consumers B2B Consumers
Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
Free Free + Premium Premium
Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
Analytics and AI Driven Management Platform
Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
In House Third Party Vendor
Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
Custom Built Platform Off the Shelf Platform
Saudi Arabia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour
By Age Group By Income Level By Gender
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Saudi Arabian Loyalty Programs Market
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