Loyalty program planning in the GCC: what works and what does not
GCC consumers engage with loyalty programmes differently than other markets. Here is what retail and eCommerce brands in UAE and Saudi Arabia need to account for when designing a programme that actually retains customers.
GCC loyalty has a perception problem
Many loyalty programmes in the GCC feel like discount schemes. Points accumulate slowly, redemption options are limited, and the value proposition is unclear to customers who have multiple cards from competing brands.
That perception is often the result of a programme designed around a points mechanic rather than a clear view of what customer behaviour the business actually wants to reinforce.
What GCC consumers respond to
Across retail and eCommerce in the UAE and Saudi Arabia, programmes that perform well tend to offer meaningful tier progression, experiential rewards alongside transactional ones, and CRM communications that reflect actual purchase history rather than generic offers.
First-party data capture is the foundation. Programmes that connect loyalty mechanics to a solid CRM and customer data layer outperform those that treat loyalty as a standalone points engine.
Design the operating model before the rewards
The most common failure in GCC loyalty planning is building the earn-and-burn structure before deciding how marketing, CRM, and product teams will manage the programme day to day.
A loyalty programme that is too complex for the team behind it will degrade quickly. Operational feasibility should be a design constraint from the first planning session.
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