UAE Ranks Second In Global Shopping Satisfaction, New Survey Reveals
The UAE has achieved a significant milestone by ranking second globally in shopping satisfaction, as revealed by a recent survey. This survey, conducted by PYMNTS Intelligence and Visa Acceptance Solutions, highlights the extensive use of digital features by 71% of consumers in the UAE to amplify their shopping experiences. The '2024 Global Digital Shopping Index: UAE Edition', which surveyed 1,392 consumers and 212 merchants in the UAE from September to December 2023, provides a comprehensive look into the evolving consumer behaviour and the increasing preference for Click-and-Mortar shopping experiences.
The survey underscores the UAE's strong appetite for an enhanced Click-and-Mortar experience. With consumers making use of an average of 14 different digital features, and nearly 9 out of 10 retail shoppers relying on digital aids for their in-store shopping experiences, the importance of digital innovation in retail cannot be overstated. However, with merchants currently offering one fewer feature on average than in the previous year, there exists an opportunity for UAE merchants to expand their shopper base by closing the gap between consumer demand and the market supply of digital features.
Salima Gutieva, Vice President and Country Manager for the UAE, Visa, pointed out the critical role of merchants in tailoring their digital offerings to meet the diverse needs of their consumer base. "Digital features can simplify shopping, and our data finds a correlation between more features used with higher satisfaction," Gutieva stated. She emphasized the potential for Visa to collaborate with UAE merchants to enhance the already first-rate in-store experience with additional digital features, ensuring customer satisfaction and loyalty.
Survey Key Findings
The survey unveiled several key findings about consumer and merchant behaviour in the UAE:
- The extensive use of digital features significantly improves the in-store shopping experience for UAE consumers, leading to high satisfaction rates.
- Consumers desire a variety of digital features, including the ability to use preferred payment methods, easy navigation of online stores, and digital access to product details and reviews.
- Despite an increase in the number of features used by consumers, the variety of features offered by merchants has decreased by one in the past year.
- There is a notable gap between the features consumers desire and those available, with 22% of desired features not provided by merchants and consumers unable to find 22% of the features offered.
Moreover, the adoption rates for Click-and-Mortar strategies have plateaued in the UAE, despite high reliance on digital features. Nearly three-quarters of shoppers in the UAE opt for online-only or Click-and-Mortar methods, moving away from traditional in-store shopping without digital aids. Notably, millennials and Generation Z consumers are at the forefront of the shift towards Click-and-Mortar strategies.
Opportunities for Improvement
The survey identified ample room for improvement, particularly in the grocery sector, where less than half of the shoppers utilize digital aids due to insufficient offerings from grocers. Additionally, parents in the UAE are highlighted as significant users of Click-and-Mortar shopping strategies, with 61% of parents with children under their care using digital shopping features in-store. Tailoring digital offerings to meet the needs of busy households, including family-friendly pickup options and engaging online experiences, is key to catering to this substantial consumer group.
As the UAE continues to embrace digital innovation in the retail sector, the survey's insights into consumer preferences and behaviour patterns offer valuable guidance for merchants looking to enhance their digital offerings. By addressing the current gaps in digital features and tailoring their services to meet the specific needs of different demographic groups, UAE merchants can further improve customer satisfaction and maintain their leading position in the global retail landscape.
