Loyalty is getting harder to earn in Saudi Arabia, especially as shoppers face endless choices and quick access to alternatives. Retailers feel this pressure when customers visit once and never return, making retention a growing concern across sectors.
Many store owners worry about declining foot traffic, rising marketing costs, and the effort required to keep customers coming back. These concerns reflect how quickly retail has changed under Vision 2030, especially with stronger digital adoption and higher service expectations.
In this blog, we’ll explore loyalty behaviour in the Saudi market, well-known loyalty program examples, ideas you can use in your stores, steps for building a strong program, common mistakes to avoid, and how HAL Retail supports retailers with loyalty and operations.
Want to improve customer retention? Schedule a free demo with HAL Retail and explore how we can support your loyalty efforts.
Loyalty programs in Saudi Arabia are growing fast, driven by stronger retail activity and rising customer expectations under Vision 2030. With the market set to grow from USD 730.3 million in 2024 to USD 1.37 billion by 2029, retailers are placing greater emphasis on long-term relationships rather than one-time sales.
Here are the shifts shaping loyalty in the Kingdom:
Now that we’ve seen why loyalty programs are essential, let’s explore some examples of those that have made a significant impact.
Successful loyalty programs follow simple rules, clear rewards, and steady communication. They work because customers know what they will get and how to earn it. Below you’ll find structured examples you can learn from, covering global leaders and well-known programs in Saudi Arabia.
Global programs focus on simple reward rules, visible benefits, and strong customer journeys. Here are the programs that set clear standards:
Starbucks Rewards:
Starbucks Rewards blends app activity with point earning through “Stars.” Members earn Stars for every purchase and redeem them for drinks or food. The program stays active because rewards appear quickly, keeping people engaged.
Here are the key points:
Sephora Beauty Insider / Beauty Pass:
Sephora uses a tier model that gives shoppers a sense of progress. Each tier offers better perks, encouraging repeat spending. The blend of practical rewards and emotional perks keeps members attached to the brand.
Here are the key points:
IKEA Family:
IKEA Family focuses on value-driven offers in-store. It gives members discounts on selected items, early access to offers, and small product protections. Its visibility inside the store makes sign-ups easy.
Here are the key points:
Regional programs succeed by focusing on local needs, Arabic-first communication, and rewards that match regular shopping habits. Here are the most relevant ones in Saudi Arabia:
Nuhdeek (Nahdi Pharmacy):
Nuhdeek is one of the most recognised loyalty programs in Saudi Arabia. It connects online and in-store purchases and adjusts offers based on health and wellness categories. Clear rules and steady communication keep membership numbers high.
Here are the key points:
Aura (Alshaya Group):
Aura covers dozens of brands across fashion, beauty, dining, and lifestyle. Members earn points across the entire group, which makes the program more valuable than single-brand systems. Cross-brand earning creates more chances for customers to stay active.
Here are the key points:
Building on these examples, here are some tailored loyalty program ideas that can resonate with Saudi shoppers.
Saudi shoppers respond well to clear value, easy rules, and rewards that fit their daily habits. With strong retail growth and rising customer expectations, offering the right program style can help you build long-term relationships. Here are program types that work well across different sectors.
A points model gives shoppers a simple path: spend, earn, and redeem. This structure works across fashion, beauty, electronics, and quick-service retailers. Here are common ways to shape a points system:
A tier system helps you reward your most active customers. As shoppers move higher up the ladder, the benefits improve, giving them a reason to stay engaged. You can structure the tiers with simple spending or visit targets.
Here are ideas for tier perks:
Cashback works well for shoppers who prefer direct value. Instead of points, they receive store credit or cash-equivalent rewards after each purchase. This can work across grocery, electronics, pharmacy, and lifestyle categories.
Way to shape cashback rewards:
Referral programs turn happy shoppers into promoters. With high smartphone use in Saudi Arabia, referral links and QR codes are easy to share.
Referral ideas include:
Saudi shoppers respond strongly to moments tied to culture and family life. Seasonal campaigns often see higher engagement than generic discounts.
Here are seasonal reward ideas:
Different retail categories need different reward triggers. A one-size approach often misses the expectations of each shopper type.
Ideas by sector:
Once you have an idea of the type of program you’d like to offer, it’s time to choose the right provider to bring it to life
Choosing a loyalty partner requires attention to retail needs, local regulations, and the expectations of Saudi shoppers. Here are key factors to check:
With a provider in place, you can move forward with the practical steps to develop or enhance your loyalty program.
Need a hassle-free way to manage VAT compliance in your retail operations? HAL VAT CARE ensures your loyalty program provider meets ZATCA Phase II requirements, supports e-invoicing, and integrates seamlessly with your systems—all while providing local support when needed.
Start with clear goals that explain what you want customers to do more often, whether that involves returning sooner, spending more, or engaging across channels. These goals guide your program structure and help maintain clarity for both customers and staff.
Once your direction is set, you can shape each part of the program with purpose and confidence. Here is a simple path you can follow:
As you build your program, be mindful of common pitfalls that could undermine its success.
Many loyalty programs lose impact because specific details are overlooked, leading to reduced participation and lower customer interest over time. Here are common pitfalls to avoid:
To avoid these mistakes and ensure success, HAL Retail offers a suite of features designed to support both loyalty and operations.
HAL ERP helps mid-sized Saudi businesses manage stores, customers, and growth without extra complexity. The system brings retail activities together inside a B2B enterprise-grade ZATCA-compliant ERP, giving teams clarity across daily operations. Here are the areas where HAL Retail supports loyalty and retail performance.
Each loyalty feature within HAL Retail helps retailers maintain accurate balances, run targeted campaigns, and reward customers without operational friction. Here are the tools that support loyalty programs:
Each loyalty feature within HAL Retail helps retailers maintain accurate balances, run targeted campaigns, and reward customers without operational friction. Here are the tools that support loyalty programs:
Retail operations inside HAL Retail support loyalty programs by keeping stock levels, pricing, and store activities more consistent. Here are key features that help maintain steady customer trust:
To see how these features work in action, let’s examine a real-world case study from Al Homaidhi Group.
Al Homaidhi Group adopted HAL Retail to strengthen oversight and improve daily performance across more than eighty locations. Their results included:
As the project reached maturity, the internal team expressed evident appreciation for the shift. The operational improvements were felt across branches, and store managers reported easier day-to-day workflows.
“HAL ERP’s user-friendly platform has transformed our retail management across 80+ stores. We now manage stock, sales, and reports more effectively and with less effort.”
— Sheikh Omar Zubaidi, Assistant General Manager, Alhomaidhi Group
This feedback reflects how a unified system can support large retail networks and help teams make better decisions with far less daily pressure.
Customer loyalty grows when rewards feel relevant, simple, and consistent across visits. Saudi shoppers respond well to programs that respect their time and offer clear value without extra steps. With the proper structure, your stores can build stronger relationships and steady repeat visits.
If you want support for loyalty, stock control, sales tracking, and store growth, HAL Retail offers a B2B enterprise-grade ZATCA-compliant ERP built for Saudi retailers.
Book a free demo with HAL Retail to see how the system can support your next stage of growth.
1. What are the 4 C’s of customer loyalty?
The 4 C's of customer loyalty refer to Customer, Cost, Convenience, and Communication. These elements are crucial in building and maintaining strong customer relationships. The goal is to deliver value, make the buying process easy, ensure clear communication, and provide an experience that justifies the cost for the customer.
2. What is the KPI for customer loyalty?
Key Performance Indicators (KPIs) for customer loyalty often include Customer Retention Rate, Repeat Purchase Rate, Customer Lifetime Value (CLV), and Net Promoter Score (NPS). These metrics help businesses assess how well they retain customers and the strength of their customer relationships.
3. What are the 3 R’s of loyalty?
The 3 R's of loyalty stand for Reward, Recognition, and Relevance. These principles highlight the importance of rewarding loyal customers, recognising their value to the business, and offering rewards that are meaningful and relevant to their needs.
4. How do loyalty programs impact customer behaviour?
Loyalty programs influence customer behaviour by encouraging repeat purchases, improving brand engagement, and fostering a sense of belonging. When customers are rewarded for their loyalty, they are more likely to return and recommend the brand, increasing overall sales and customer retention.
5. What makes a loyalty program effective?
An effective loyalty program provides clear, achievable rewards, is easy to understand, and offers value that resonates with customers. It should be personalised, seamless across all platforms (in-store and online), and provide incentives that motivate customers to make repeat purchases and engage more frequently with the brand.
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