Customer Experience Blog in the Middle East

Why does customer experience matter in the GCC region?

[fa icon="calendar"] Feb 17, 2017 12:43:04 AM / by Houssam Abatal

Regardless of where you are, the industry where you are operating within or the size of your company, customer experience is a vital part of your business. But there are certain regions in the world where delivering a world class customer experience got far more important than others.

Companies in the GCC region started looking at customer experience during the last three years and the economic crisis was the main trigger to this change in strategy.   

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Heavily reliant upon oil, the GCC countries started experiencing the impact of a relatively low barrel price on early January 2014. In the space of two years, the oil prices went from $110 USD to $29 USD in Dec. 2016. Business was not the same anymore, and things may take a lot of time to change. 


While three years ago, the revenue generated by companies was supported by the exponential growth of the middle eastern markets, it is not the case anymore. Acquiring clients became more difficult and the revenue generated from these clients was far less important.

Whether a company is selling to other companies or to individuals it was extremely difficult to secure existing revenue or acquire net new revenue.


To continue their growth or at least minimize the impact of the economic crisis, companies in the GCC region decided to bet on customer experience, and here are some reasons that motivated this choice.


Customer Experience and retention rate

While companies in the GCC region couldn’t afford losing customers anymore, they learnt that 68% of customers leave their company because of a bad customer experience.

By measuring customer experience and making sure that they are providing the best products and services to their clients, companies knew that they will have a certain impact on customer retention


New customers vs Existing customers

Acquiring new customers could cost as much as 10 times more than generating the same revenue from existing customers. By making sure their customers were happy, companies in the GCC region were securing new revenue.

As budgets were being tightened in the meantime, companies couldn’t afford investing heavily on acquiring new business. Therefore, this strategy had two benefits, managing/reducing the costs and the meantime growing revenue


Likelihood to recommend

In times of crisis, both companies and individuals adopt a new set of behaviors. Buyers tend to take more precautions before engaging into a transaction whether it is personal or professional. Buyers start performing extensive research on companies before taking a decision. Most of the time and especially in the Middle Eastern culture, individuals rely on recommendations and referrals.

Providing a great customer experience through the relationship with an individual or a company become one of the biggest differentiators in the region.

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