Loyalty programmes drive online shopping in UAE to hit $5.5bn in 2024

A latest study showed that as high as 75% of UAE shoppers are subscribers to various loyalty programmes offered by online marketplaces and companies across sectors.

Discounts and convenience key drivers of online shopping

The study showed that online loyalty programme adoption has doubled in just one year in the UAE – from 20 percent last year to 40 percent this year. A whopping 30 percent of high-value loyalty programme members contribute about $5.5 billion, amounting to as much as 50 percent of the online retail revenues in the country.

Loyalty programmes: the prime criteria for decision making

Discounts led the list of reasons for 55 percent of loyalty programme members for increased online shopping, followed by the convenience of free delivery (52 percent), cash back (42 percent) and early access to sale (35 percent).

Evolving digital ecosystem in UAE

Industry experts said the study findings point to the evolving of a mature digital ecosystem in the UAE where experience is increasingly becoming important, and loyalty programmes becoming an important lever for it.

Loyalty programmes are most important for 40 percent of purchase decisions, with discounts and free deliveries being the top two reasons for UAE shoppers for adopting loyalty programmes.