Euromonitor International Study Reveals MEA Consumers in Loyalty Programs Prefer Freebies

A recent study by Euromonitor International reveals that over 50 percent of consumers in the Middle East and Africa (MEA) prefer discounts, offers, and free products from their loyalty memberships. This finding underscores the increasing demand for value-added benefits in loyalty programmes across the region, forcing brands to adapt and deliver wide-ranging rewards, more prestigious membership status, enjoyable experiences, and personalised services.

The 2023 Loyalty Snapshot report further indicates that discounts and free products are major incentives for consumers in markets such as the UAE and South Africa. Nadejda Popova, Head of Loyalty at Euromonitor International, highlights the importance of creating lifestyle loyalty programmes that reward actions rather than purchases. “Exclusivity combined with deeper engagement for preferred brands is a significant factor in consumer participation.”

The research points out that understanding consumers' daily lives is crucial for the success of loyalty programmes. As consumers seek added value from their purchases, Popova noted that businesses should aim to integrate into their consumers’ daily routines by promoting wellness and wellbeing behaviours and offering highly personalised benefits.

The grocery retail sector leads in loyalty programme participation, with grocers investing heavily in delivering seamless omnichannel shopping experiences. Approximately 47 percent of global respondents participate in grocery store rewards-based programmes, with higher participation rates in South Africa (70 percent) and the UAE (49 percent). The MEA region presents significant opportunities for loyalty programmes, driven by the growth of the middle class and youthful demographics.

Real-world experiences are particularly valued by MEA consumers, with 88 percent of Nigerian consumers emphasizing their importance, followed closely by the South African and Egyptian markets. These experiences play a vital role in helping local businesses attract and retain customers, gain a competitive edge, and drive business growth.

Furthermore, the rise of gaming culture in the MEA region is expected to drive loyalty programmes. In 2023, 27 percent of MEA consumers played online video games, compared to 25 percent in Asia Pacific and 22 percent in Latin America. Popova stated that companies are increasingly using gamification strategies to build trust and long-term relationships with customers. Gamified loyalty programmes, featuring scoreboards, challenges, badges, and performance charts, are proving effective in enhancing engagement, satisfaction, and loyalty.