Retailers, here's something you can learn from Careem and Uber

Dubai - Technological disruption can also innovate the way retailers can approach customer interaction

The last decade has seen an almost total realignment of the taxi market, both here in the UAE and around the world. The way that we order taxis has totally changed, and a taxi being 'on demand' no longer means you have to head to a taxi rank to find one. As smartphones have become increasingly universal, taxis are being hailed through apps more and more. Here in the UAE, the two new big players battling for our attention have been Careem, based here in Dubai, and US giant Uber.
Technological disruption has brought ferocious new competition to the taxi market, and has forced both Careem and Uber to not just compete on prices, but also innovate in the way that they approach customer interaction and loyalty. If you'd have said 10 years ago that your taxi provider would give your friends a free ride, or get you money off a maid, you would have been considered mad. Today, they're just some of the ways that Uber and Careem are looking to build strong relationships with their customers and keep them engaged.
Retail is also increasingly being disrupted by technology, whether it's by in-store beacons, app-based loyalty programmes, or virtual in-store assistants. As the line between online and in-store shopping blurs, there will be more competition and more of a push for innovation, in products, service, and, of course, loyalty programmes. Retail brands would therefore do well to keep an eye on what has worked well in the taxi market to build their own strong relationships with consumers.
While Uber has been under pressure recently, as Careem has signed a deal with the Roads and Transport Authority, it has still managed to carve out a strong place in the market thanks to its rewarding of customers for making recommendations to their friends. For example, if you recommend Uber to someone who hasn't used the service before, they get their first ride, and you get your next ride, for free. We recently carried out some research into the attitudes of shoppers across the UAE, and found that 27 per cent said that they expected to be rewarded when they made a recommendation to a friend or family member. Retailers might therefore want to consider new and innovative ways to reward their customers who recommend new products, whether it's to their friends in person or to their social media followers.
Meanwhile, Careem has fought back and won a very loyal following by providing useful and relevant communications to their customers. Dubai and Abu Dhabi among the world's great cosmopolitan cities, with people living here from all over the world. That also means that there are people here who speak a wide variety of languages, all of whom want to communicate in a way that suits them. Thirty-four per cent of those we surveyed said that they expected brands to get their tone of communication right for them. Having Arabic and English speakers on hand is good, but could retailers go further with the language services they offer, both online and off?
Careem has also seen success in offering promotions which truly make the most of their local roots. As a Dubai headquartered company, Careem have worked to deliver experiences and promotions that those living in the UAE will truly appreciate and which is tailored to them. Last year saw Careem partner with the Dubai Jazz Festival, while a partnership with cleaning service JustMop meant that users could get discounts across the services. Retail brands need to understand that customers' lives don't stop when they walk out of your store or close your webpage. In the same way that people take taxis to reach a destination, people buy things for specific purposes. Brands that partner with events and allow for discounts and offers to be used on things useful to all areas of their lives will help to build a deeper relationship with their customers.
The taxi market in the UAE and around the world has become more interesting and rewarding for their customers because of the intense competition that the industry has seen. The same should happen in retail, as brands deliver more interesting loyalty programmes and build devoted relationships with their customers. By working to properly identify what makes their customers tick, retailers can provide exciting and exclusive rewards that keep them coming back time and time again.
The writer is general manager of ICLP. Views expressed are his own and do not reflect the newspaper's policy.