The UAE ranks second globally in shopping satisfaction, with 71% of consumers extensively using digital features to enhance their shopping experiences, according to a recent survey.
The ‘2024 Global Digital Shopping Index: UAE Edition’ by PYMNTS Intelligence and Visa Acceptance Solutions draws insights from a larger survey of 13,904 consumers and 3,512 merchants across seven countries. The study highlights the rise of ‘click-and-mortar’ shopping, which combines digital tools with physical locations, reflecting a shift from online-only or in-store-only shopping.
UAE consumers use an average of 14 different digital features, with nearly 90% of retail shoppers relying on these aids during in-store shopping. Despite merchants offering fewer features on average than the previous year, there is an opportunity for UAE merchants to expand their shopper base by meeting the high demand for digital features.
Salima Gutieva, vice-president and country manager for the UAE at Visa, noted,
“Digital features can simplify shopping, and our data shows a correlation between the number of features used and higher satisfaction. For instance, Click-and-Mortar™ shoppers in the UAE experience a 56% increase in satisfaction compared to in-store-only shoppers who avoid digital features.” However, the UAE’s in-store-only experience surpasses click-and-mortar satisfaction levels in some other markets surveyed. Gutieva added, “This presents an opportunity for Visa to partner with UAE merchants to enhance their already excellent in-store experiences with additional digital features, ensuring greater customer satisfaction and loyalty.”
Key findings from the survey include:
- High Digital Adoption:
- 71% of UAE consumers incorporate digital features into their shopping experiences.
- Extensive use of digital features enhances in-store shopping satisfaction.
- Key digital features include preferred payment methods, mobile apps or mobile-specific sites, easy-to-navigate online stores/shopping carts, and digital availability of product details and reviews.
- Feature Gap:
- While the average number of features used by consumers has increased, the variety offered by merchants has decreased by one feature.
- There is a 22% gap where merchants do not provide desired features and consumers cannot find the features they seek.
- Click-and-Mortar Adoption:
- Adoption rates for click-and-mortar shopping have plateaued despite high consumer reliance on digital features.
- Nearly 75% of UAE shoppers use online-only or click-and-mortar methods, moving away from traditional in-store shopping without digital aids.
- 43% of UAE consumers use click-and-mortar strategies, exceeding the global average of 39%.
- Millennials and Generation Z are the leading demographics driving this shift.
- Sector-Specific Opportunities:
- There is ample opportunity for improvement, particularly in the grocery sector.
- 89% of retail customers use digital features regularly, compared to 45% of grocery shoppers.
- Grocery shoppers use fewer digital features (10 on average) compared to the overall average (14 features).
- To maintain customer satisfaction, merchants, especially grocers, need to innovate and provide more digital features.
- Parental Preferences:
- 61% of parents with children use digital shopping features when shopping in-store, compared to 33% of those without children.
- There is a high demand for features that cater to busy households.
- Tailoring digital offerings to these demographics, such as family-friendly pickup options and engaging online experiences, is crucial to meet their specific needs.
News Source: Khaleej Times
