For years, major retail names in the Middle East have excelled at crafting unparalleled luxury experiences, setting a standard that's hard for other regions to match. The rising phenomenon of experiential retail within shopping malls underscores the region's dominance, with Middle Eastern retailers leading the charge in surprising and delighting their clientele. This strategy has demonstrated its effectiveness in boosting customer engagement, foot traffic, prolonging visits, and encouraging larger purchases.
As the region shifts towards creating dynamic, multifaceted destinations that center around community, shopping malls must learn how to leverage these deep customer relationships to form a loyal following of their own. A great example of a large mall already tapping into this is Yas Mall, UAE. Seamlessly combining shopping, entertainment, and leisure, with a range of cultural experiences suitable for the whole family, this mall has seen huge growth in footfall.
Understanding your shoppers' needs is crucial for driving customer satisfaction and engagement. To achieve this, gathering and analyzing customer data is essential. However, in 2024 and beyond, easy access to third-party data is diminishing due to heightened data security measures. For instance, Google is gradually phasing out third-party cookies targeting Chrome users worldwide. This shift underscores the importance of prioritizing first-party data collection methods.
Fortunately, acquiring this data is not as complex as it may seem, especially with the right technological tools at your disposal.
PWC’s 27th Annual CEO Survey (Middle East Findings), identifies one (of four) key focus areas for 2024 and beyond as ‘technology investment’, stating that the Middle East must “pursue a growth strategy and prioritize a comprehensive technology redesigning agenda while scaling technology usage, building organizational agility… for the future.”
Similar feelings were shared in KPMG’s 2023 UAE CEO Outlook as 56% of CEOs agreed that AI is a top investment priority, likely driven by examples such as the Dubai and Abu Dhabi malls, who are already using AI algorithms to provide personalized shopping recommendations. Evidence shows that individually tailoring the retail experience increases customer satisfaction and loyalty.
As mentioned, there is a growing need for shopping destinations to acquire first-party data from customers to sustain growth and foster loyalty. Fortunately, numerous strategies and technologies are available to support this. B2B SaaS companies like Coniq are leading the charge in offering customer engagement solutions that prioritize compliant data collection.
Investing in a robust CRM capable of not only gathering data from various touchpoints but also consolidating it into comprehensive reports and dashboards is essential. This allows you to gain insights into customer behavior and tailor shopping experiences accordingly. Additionally, prioritizing a solid foundational tech stack that is both adaptable and scalable is crucial to meeting the needs of your customers for years to come.
Several retail technologies exist that can offer detailed insights into shopper behavior, such as where they shop, how long they stay, visit frequency, spending habits, and purchase preferences. Examples of these technologies include:
Some mall operators may contemplate building these technologies themselves as part of their bespoke digital infrastructure. However, obtaining proven technologies from established providers offers numerous advantages including faster time-to-market, reduced financial and resource investments, and mitigation of risks associated with inexperience and evolving market dynamics. Partnering with specialized providers who have demonstrated success in hundreds of tried and tested environments offers you a secure foundation that meets your security needs, while also being flexible with APIs for creative development so that you can concentrate on future innovations. The decision on whether to buy an off-the-shelf solution or build your own will need to be weighed up against the time and cost of implementation, the forecasted ROI, and the need to scale and future-proof functionality.
Resolving typical customer pain points, delivering first-class customer service, and delighting customers with unforgettable experiences and premium rewards are the trifecta for building loyalty.
Here are some examples that you could implement in your shopping mall:
AW Rostamani’s ‘VIP Rewards’ is a prime example of how to run a program that combines luxury retail with personalized experiences that encourage continued customer engagement. Incredible results were seen in the months following launch with the enrolment of over 48,000 shoppers who contributed 28% of AWR’s total revenue.
‘VIP Rewards’ is a tiered program that harnesses Coniq’s platform to gather data insights at every interaction point in the customer journey. Members receive customized rewards based on their spending habits, transaction history, and frequency of visits. Initially launching with Silver, Gold, and Platinum tiered levels, the performance of the program was so effective that in November 2023 AWR introduced a Diamond Tier for customers at their luxury jewelry brand, Vhernier.
They did this following the analysis of demographic and psychographic insights, provided by the CRM, which showed that VIP Rewards members typically spend up to 40% more than the average transaction value (ATV) of a non-loyalty customer. The Diamond tier offers Vhernier shoppers an extra layer of luxury as those in the category must hit a spending threshold to access this tier.
AWR’s VIP program offers a range of innovative rewards and incentives as part of their program:
Watch the VIP Rewards case study AW Rostamani Lifestyle’s Managing Director >
Incorporating experiential retail within your mall is no longer just a bonus—it's essential. To drive business growth, prioritizing the customer's needs is paramount. This involves optimizing every touchpoint for data collection and enhancing the customer experience while surprising and delighting your most valuable shoppers with relevant and exciting campaigns.
Therefore, it is recommended that malls invest in cutting-edge technologies that optimize data capture and interpret key insights effectively. Additionally, consistent monitoring of key performance indicators (KPIs) like average transaction value (ATV), increased foot traffic, and dwell time against revenue generation is crucial. Implementing or refining a loyalty program can further boost engagement and open up opportunities for technology integration and scalability to future-proof your destination and create long-term value for your customers.