ServiceNow Reveals Consumer Loyalty Insights
91% said they were likely to switch brands following a poor customer experience and 23% of UAE consumers said they are less loyal to brands than they were 2 years ago, ServiceNow revealed.
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ServiceNow, a digital workflow company, released a report on consumer loyalty insights, revealing that almost every UAE consumer will walk away from a brand after just one negative experience.
In a dive into the factors determining loyalty, ServiceNow found cost to be the biggest driver, with 40% of UAE consumers telling researchers that they are less willing to stay loyal to brands because they shop around for the cheapest option.
In another finding, 73% of respondents reported spending more this year compared to 12 months ago, and 54% of these higher spenders attributed their behaviour to rising costs. Not surprisingly, when UAE consumers were asked what they would like to see brands prioritising over the next 12 months, the top answer (42%) was price reductions.
Another driver of declining brand loyalty is that UAE consumers place a high premium on customer service. 91% said they were likely to switch brands following a poor customer experience and 23% of UAE consumers said they are less loyal to brands than they were 2 years ago because they have had disappointing experiences with companies.
Ali Kaddoura, Country Manager UAE at ServiceNow, said, “Brands in the UAE need to be at the top of their game. While cost is important, brands must pay attention to other aspects that can set them apart from competitors who are just a click or swipe away from the modern consumer. Service must include exceptional streamlined experiences, both human and automated, at every touchpoint along the customer journey.”
“When it comes to customer service, the survey results are clear: customers in the UAE and around the world may actually punish brands for perceived bad experiences. GenAI is the way forward, and is at its best when empowering employees to build better relationships with customers by delivering human-based engagement sessions that delight and amaze. It is a very human message and one we should all take to heart,”Kaddoura added.
The research also uncovered some very interesting insights as it relates to the role of AI in customer service. While most companies are racing to invest in more automated channels like chatbots, 77% of UAE consumers said they wouldn’t engage with a brand using AI, for at least some services.
The findings also showed a preference for human-to-human interaction among UAE consumers. 58% said they’d like to see all brands offer full 24/7 customer service and 52% said they’d like to see a return to human-based customer service to minimise automated routes, in the next year.
