UAE Consumers Ditch Brands Fast on Bad Experience: Report

A recent report by ServiceNow, a digital workflow company, unveils a striking trend among UAE consumers: an overwhelming 91% of them are inclined to switch brands following a single negative encounter. The study, which surveyed 18,000 consumers across 13 countries, including 1,000 respondents from the UAE, highlights the nation’s unparalleled brand disloyalty compared to global averages.

The research delves deeper into the factors influencing brand loyalty, pinpointing cost as a primary driver. Forty percent of UAE consumers express a willingness to explore cheaper alternatives, contributing to a decline in brand allegiance, which surpasses the global norm by 11 percentage points.

Furthermore, the study underscores the critical role of customer service in shaping consumer loyalty. An astounding 91% of respondents indicate a propensity to change brands post a subpar service encounter, with 23% attributing their decreased loyalty over the past two years to disappointing customer experiences.

Ali Kaddoura, Country Manager – UAE at ServiceNow, emphasizes the necessity for brands to excel in various facets beyond cost competitiveness. He stresses the importance of delivering exceptional, streamlined experiences across all touchpoints of the customer journey, blending human and automated interactions seamlessly.

Intriguingly, the report sheds light on consumer perceptions regarding AI-driven customer service. Despite industry fervor towards automated channels like chatbots, 77% of UAE consumers express reluctance to engage with AI-powered services, citing concerns over personalization and trustworthiness.

Contrary to consumer sentiment, employees in the UAE hold a significantly optimistic view of AI’s potential in the workforce, with 74% recognizing it as a key opportunity for enhancing productivity. Kaddoura emphasizes the role of AI as an augmenting force, empowering human employees to foster deeper customer relationships through personalized, human-centric engagements.

In conclusion, the report underscores the imperative for brands to prioritize customer-centric strategies, leveraging technology to complement human interactions and deliver unparalleled experiences in the competitive market landscape.