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Communicate Online | Regional Edition | Advertising, marketing, public relations and media in the Arab world and beyond

Communicate Online | Regional Edition | Advertising, marketing, public relations and media in the Arab world and beyond

Almost 60% in UAE don’t trust brands for this one thing

Research

Almost 60% in UAE don’t trust brands for this one thing

With GDPR coming into effect yesterday, brands are having to take a long, hard look at their data and privacy strategies.

In light of this move, we look at what users think of brands collecting their data and as it turns out 59% don’t trust brands with their data, according to data from loyalty firm ICLP.

This presents a major challenge for retailers as they try to build stronger relationships with their customers and encourage them to join a growing number of loyalty programs.

READ: These companies are actually making money off GDPR

ICLP surveyed UAE consumers to understand how they felt about the risks and rewards of sharing their personal data with brands, and found that only 41% trusted brands to treat their personal data with respect and use it in their best interests.

The results also varied between some of the UAE’s top brands. Just 46% of Splash shoppers, and 39% of Carrefour shoppers said that their data was treated with respect and in their best interests. The figure was even lower, at 32% with apparel retailer H&M.

Many brands were also not seen as rewarding enough. 78% of Carrefour shoppers, 71% of Splash shoppers, and 73% of H&M shoppers said that they did not feel like they got anything in return for sharing their personal data.

MUST READ: What GDPR means for the Middle East

ICLP’s results suggest that shoppers in the UAE see the risks of sharing their data as far outweighing the rewards. Most are not delivering the personalization and special offers that brands feel that they deserve for sharing their personal information with a brand.

As part of the research, ICLP asked shoppers about how effectively they felt brands used their data and found that:

Brands don’t remember the purchases that shoppers have made in the past74% of UAE shoppers said that they didn’t find that brands remembered their previous purchases, something that is key for making future recommendations and understanding shopper behavior

Shopping preferences are not properly recorded: Three-quarters said that retailers did not remember their payment, shopping, or delivery preferences

ALSO READ: Why Google is mum about GDPR

Personalization is not being delivered: Only 28% of UAE shoppers found that they were given personalized and relevant product recommendation by brands

Rewards are not sufficiently tailored: Brands are also not using data to make their loyalty programs sufficiently personalized. Just 31% said that they were rewarded with offers that were tailored to them

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