A report by ServiceNow, the workflow company, said that a single negative experience is all it takes for every UAE consumer to walk away from a brand.
A stronger driver of declining brand loyalty is that UAE consumers place a high premium on customer service. Close to 91 per cent said they were likely to switch brands following a poor customer experience, and 23 per cent of UAE consumers said they are less loyal to brands than they were two years ago because they have had disappointing experiences with companies.
“Brands in the UAE need to be at the top of their game,” Ali Kaddoura, Country Manager UAE at ServiceNow said. “And 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.”
The report stated that cost is the biggest driver in determining loyalty. About 40 per cent of UAE consumers stated they are less willing to stay loyal to a brand as they shop for the cheapest option.
Another finding stated that 73 per cent of consumers spent more this year than the previous year, and close to 54 per cent of these high spenders attributed this 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 per cent) was price reductions.
The research also uncovered some very interesting insights into the role of AI in customer service. While most companies are racing to invest in more automated channels like chatbots, 77 per cent of UAE consumers said they wouldn’t engage with a brand using AI for at least some services. Close to 32 per cent cited the lack of personalisation, and 20 per cent said they don’t trust the answer they will get.
The findings also showed a preference for human-to-human interaction among UAE consumers. The report stated that 58 per cent of respondents said they’d like to see all brands offer full 24/7 customer service, and 52 per cent said they’d like to see a return to human-based customer service to minimize automated routes in the next year.
These findings starkly contrast employee sentiment on AI, which is overwhelmingly positive, based on a separate ServiceNow research study from just this past December. In that study, almost three-quarters (74 per cent) of UAE employees — 26 percentage points higher than the EMEA average — saw AI as the biggest opportunity for the future of the workforce, especially due to its capacity to boost productivity.
“What we are seeing here is what advocates of responsible AI have been saying for some time – AI has the greatest potential as an augmenting force in business and a power enabler of human employees rather than a replacement for them,” Kaddoura noted.
“Regarding customer service, the survey results are clear: customers in the UAE and worldwide may punish brands for perceived bad experiences. GenAI is the way forward and is at its best when empowering employees to build better customer relationships by delivering human-based engagement sessions that delight and amaze them. It is a very human message we should all take to heart.”
