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Saudi Arabia is on a mission with Vision 2030, transforming into a cashless, digital powerhouse—and the loyalty market is feeling the buzz. Even the government has joined the party with DOAM, a loyalty program that’s shaking things up for over 1.2 million public sector employees. The DOAM program allows employees to enjoy exclusive offers, such as discounts on flexible domestic fares, special deals on international flights, and curated travel packages.
This marks a shift not just in the public sector, but across industries like e-commerce, retail and travel and hospitality, where businesses are increasingly using loyalty programs to forge lasting customer relationships.
The Saudi loyalty market grew at an impressive CAGR of 11.6% between 2019 and 2023 and is forecasted to reach USD 1.59 billion by 2028. What’s fueling this exponential growth? A combination of technological advancements and evolving consumer preferences. Brands are beginning to recognize that loyalty programs are no longer a “nice-to-have” but a strategic imperative to drive business growth and stay competitive.
If you think points and discounts are all you need to get a jump start in this booming market, think again. With over 60% of the population under 35, there’s a massive demand for digital-first, innovative products and experiences. Today’s Saudi consumers crave meaningful connections, memorable experiences, and real-time value. Brands must rethink their loyalty strategies to stay ahead and meet these evolving expectations.
Discounts and offers are no longer sufficient to build loyalty. Today’s consumers expect curated experiences that make them feel special. Programs like Saudi Rewards are leading the way by allowing members to earn and redeem points across a wide network of tourism events, travel deals, dining experiences, excursions, and entertainment. This creates an emotional connection with the brand, turning customers into advocates.
To stand out, brands must move beyond transactional incentives and design loyalty programs that offer exclusive dining experiences, personalized getaways, or VIP access to events. The focus should be on creating moments that matter—moments customers won’t forget.
Sustainability is becoming a non-negotiable in the Saudi loyalty market, and conscious consumerism is becoming a key trend in the region. Customers are increasingly drawn to brands that show a commitment to social responsibility and environmental consciousness. Loyalty programs that integrate sustainability—such as eco-friendly rewards, carbon offset incentives, or green points systems—appeal to this growing segment of conscious consumers.
Don’t keep them waiting. With instant gratification becoming a key engagement factor, Saudi consumers expect quick rewards making cashback programs more popular than traditional point-based rewards.
Some instant gratification strategies that brands can consider:
In the booming Saudi loyalty market, brands that deliver rewards swiftly keep customers engaged and motivated to make repeat purchases.
Recent research from Saudi Arabia Consumer Behavior in the New Era shows that Saudi consumers are becoming increasingly price-sensitive and value-conscious. This has heightened the need for Saudi loyalty programs that offer meaningful discounts, bundled incentives, and high-value rewards.
Brands should focus on combining price savings with aspirational rewards—for instance, a loyalty program that offers both discounted shopping vouchers and exclusive experiences ensures customers feel they are getting the best of both worlds.
Despite the growing demand, building and managing loyalty programs in Saudi Arabia is not without its challenges. Brands must navigate the following hurdles to ensure their programs remain relevant and compliant.
The Saudi government is introducing new regulatory frameworks focused on data privacy, payment security, and consumer rights. With loyalty programs requiring access to personal data, it’s crucial for businesses to align with these evolving regulations.
Non-compliance risks damaging brand reputation and customer trust. Brands must balance personalization with privacy by being transparent about how customer data is collected and used.
Customer behaviors in Saudi Arabia are evolving rapidly. While digital adoption, mobile shopping, and social commerce are reshaping how consumers engage with brands, building long-term loyalty is becoming more challenging. Younger demographics, in particular, are driven by deals, promotions, and instant gratification, leading to low customer stickiness. To stay competitive, loyalty programs must offer seamless omnichannel experiences and deliver relevant, personalized rewards that go beyond discounts to foster deeper, lasting connections.
Succeeding in Saudi Arabia’s evolving loyalty landscape means putting customers at the heart of your strategy. It’s about creating programs that resonate with local preferences and align with what customers truly value. Here’s what can make a difference:
Loyalty programs that reflect regional traditions and cultural values resonate more deeply with Saudi consumers. Hence incorporating localization features that speak directly with the consumers can make a huge difference in building an emotional connection with them. While the foundational element of localization is of course the use of regional language across platforms, it is not limited to it. Localization in your loyalty program can also consider:
With digital advancements playing a major role in driving the loyalty market in Saudi, brands need to consider different innovative ways to engage their customers. Gamification could be a great way to start. Gamification features—such as milestones, badges, and challenges—boost engagement and encourage repeat interactions.
By integrating the omnichannel experience into your brand’s loyalty program, you can make sure that you are connected with your customers at every touch point and can engage with them wherever they are and how they might prefer.
If your brand wants to stand out and truly connect with customers, hyper-personalization isn’t just a nice-to-have—it’s essential. It’s not about simply using a customer’s name, age, gender, or location; it’s about engaging them through their unique preferences based on their purchase history, customer journey, etc, and delivering messages that resonate on a personal level. In order to implement hyper-personalization, brands can:
Customer expectations keep changing and that’s a given. Navigating these changing customer expectations is a major challenge that brands face, but there’s a solution. Brands that leverage advanced analytics can anticipate emerging trends and stay ahead of changing consumer behavior. Predictive analytics can help brands identify opportunities to improve their loyalty programs and deliver more meaningful rewards, thus creating a delightful experience for their customers.
Collaborating with complementary brands opens new avenues to engage customers by offering richer, more meaningful rewards. In Saudi Arabia, cross-brand loyalty ecosystems are gaining momentum, with notable examples like Saudi Arabian Airlines (Saudia) partnering with retail brands and hotels through their Alfursan loyalty program. Similarly, STC Pay collaborates with retailers and restaurants, providing discounts and rewards that enhance everyday transactions for users.
These partnerships create seamless ecosystems—airlines, hotels, retail chains, and financial services working together to offer customers more value. This approach makes it easier for members to earn and redeem rewards across multiple touchpoints, enhancing their loyalty journey with incentives that fit their lifestyle.
The loyalty landscape in Saudi Arabia is expanding rapidly and the demand for personalized, meaningful experiences in the region is now higher than ever. To stay ahead, brands need to act fast, leveraging this momentum to transform loyalty programs from cost centers into profit engines. But why do the heavy lifting all by yourself when you can partner with the right loyalty solutions provider? With the right loyalty partner offering the expertise, tools, and scalability to design impactful programs, brands can achieve measurable results and position themselves to thrive in this dynamic market.
At Capillary Technologies, we specialize in building adaptive, scalable loyalty programs that meet the unique needs of regional markets. With our deep expertise in AI-powered personalization, gamification, and omnichannel engagement, we help brands design loyalty strategies that resonate with Saudi consumers and deliver real business impact.
Is your loyalty program ready to unlock the potential of the Saudi market? Let Capillary help you build the perfect strategy to drive long-term success.
November 6, 2024 | 4 Min Read
Explore the booming Saudi loyalty market with insights on em