To discuss why in a modern marketing strategy loyalty solutions have become integrally instrumental, how marketers can leverage loyalty, how Dsquares made it to nothing short of being a market leader and their expansion plans, we had an exclusive chat with Marwan Kenawy , CEO of Dsquares, and below is what he had to say.

BB: Marketers and brand builders. are constantly fetching ways for customer journeys’ growth to cut through the noise and connect with their audiences on a deeper level. In the heart of these growth tactics is invigorating loyalty in any brand’s strategy DNA. In your opinion, why should brands care about Loyalty?

MK: Loyalty is crucial for brand success, directly impacting the bottom line and long-term viability. It is vital for brands to embed loyalty deep within their marketing strategies to enhance customer retention and compete effectively.

Today’s market dynamics are shaped by empowered consumers, including the digitally-savvy Gen Z, who demand that brands not only understand but also cater to their evolving needs. This requires a focused approach to omni-channel marketing, which ensures a consistent and seamless customer experience across all touchpoints, bolstering loyalty.

Loyalty not only encourages repeat business but also significantly impacts retention rates. For example, A study by Oracle highlights that Gen Z values good product selection, fair pricing, and enjoyable shopping experiences. Interestingly, 62% of Gen Z consumers could be persuaded to choose one brand over another if a loyalty program is in place, emphasizing the power of well-structured loyalty incentives.

Furthermore, strong loyalty programs enhance brand advocacy and reputation. Satisfied customers are more likely to advocate for a brand, enhancing its market reputation through positive word-of-mouth and social proof.

In essence, prioritizing loyalty not only secures repeat business and improves retention rates but also amplifies brand advocacy and strengthens reputation, essential for sustained growth and competitiveness.

BB: Loyalty Solutions and Customer Loyalty. Two connected terms and two inescapable brand growth cornerstones. Do you agree? please explain.

MK: Absolutely. Customer loyalty is an emotion, and to be able to reach this emotion you need the tools and means to help customers feel it. Loyalty solutions are more like the catalysts that provide exceptional relevant experiences based on customer psychology to make them loyal.

BB: As a leading loyalty solutions provider, can you walk us through some of the top remarkable loyalty program campaigns you’ve developed?

MK: We worked with Cadbury on their “Sharing Goodness” campaign in 2023. The campaign was about community values, social impact and a shared commitment to doing good. 

This award-winning campaign was based on a CSR initiative to give back to night shift employees across the nation: security guards, doormen, and other blue-collar workers. 

The campaign positively impacted over 2,000 community members, receiving more than 1,000 donations of Aman credit and Shahid subscriptions. With active consumer participation and an overwhelming 82% of participants feeling encouraged to spread kindness, the campaign led to improved brand perception. Additionally, ad recall scores were in the highest quartile, ranging from 10% to 15%, surpassing the performance of previous campaigns.

Also, the campaign contributed to a 7% revenue growth and an increase in market share.

BB: From Egypt to the region; With Dsquares stretching its capabilities to the GCC especially KSA and UAE, how do you see the similarities and differences in consumers’ behavior in their responsiveness to loyalty solutions between both markets? Can you provide any statistical data about this vertical penetration in the GCC?

MK: Both markets are becoming increasingly competitive, with numerous brands vying for consumers’ share of wallet. While the diversity of consumers in each market is similar due to investment and the increasing number of expatriates, the characteristics of the local populations differ.

The UAE market is more saturated, with a mature loyalty market. In contrast, Saudi Arabia shows clear potential for growth, particularly due to its larger market size. 

BB: Mobile Rewards are on top of the key trends in building a successful loyalty strategy. As a regional industry thought leader, in your opinion, what are the other key trends that will shape this industry in the rest of 2024 and 2025?

MK: AI is continuing to advance with more techniques to understand the psychology of the consumers rather than just their demographics and data. These emerging technologies support hyper-personalization with algorithms, large language models (LLMs), real-time personalization and predictive capacities. 

As the volume of data increases, consumers now have higher expectations for brands to engage with them on a personal level.

The introduction of the Metaverse and Web 3.0 are also among industry trends that will impact activities from rewards diversification and tokenization as well as integration of AR and VR into applications for more immersive experiences.

BB: Forging Effective Event Collaborations: Dsquares has been announced as a headline sponsor for Loyalty Connect Dubai. What are some of the key highlights that will be introduced throughout the event’s agenda?

MK: We will be sharing best practices and case studies while also delving into the impact of Customer Value Management (CVM) in customer loyalty. We eagerly anticipate exchanging our expertise with a global audience and engaging in collaborative learning with other international experts.