Delivery apps have reached a stage where it is difficult to predict whether they can continue on the same path in the Saudi market. Although companies have enough funding, know how to set ambitious goals, and can launch competitive campaigns in a short time, none of this is enough if they do not simply understand what today’s consumer wants!
In this article, we highlight the change that has taken place in consumer behavior and how it has affected the survival and loss of some major companies in the Saudi market.
Keeping Up with Changing Consumer Behavior
Today’s customer has become more aware, especially after the COVID-19 pandemic. Consumers now look for the option that offers quality at a lower price, open more than one app to compare prices, delivery time, offer value, and service fees, and then decide which platform they will continue their order with.
In the world of commerce, any company that does not place the customer’s interest at the center of its decisions will later discover that the customer has moved elsewhere, because loyalty is a renewed result of every experience in which the customer feels that their choice was right.
This shift in behavior has made competition in the app market more sensitive and has pushed major competitors such as Jahez, HungerStation, Noon, and Keeta to rely on strong discounts and free delivery offers to win customers. This, in itself, raises a bigger question: if everyone offers advantages, on what basis does the customer choose to stay?
Understanding the Customer Is the Core of Competition
Competitive advantage in the app market is no longer linked only to the number of campaigns or the breadth of reach. It is now measured by a company’s ability to understand the customer’s taste and behavior before they even place an order. Today, many digital tools, such as artificial intelligence and social media algorithms, help analyze data and reveal the customer’s taste and behavior, what they prefer, when they search, when they are in a hurry, and when they browse.
Jahez shows its understanding of the customer from two clear angles: the first is fast compensation when a small item is missing from an order, and the second is the use of data inside “Explore” to understand customer preferences. Does the customer prefer burgers? Are they looking for what is trending? Do they browse calmly, or do they want to order quickly?
Those Who Do Not Apply Respect Lose
Saleh Al Shibl, Assistant Professor at King Fahd University of Petroleum and Minerals and a specialist in the marketing field, says that “the foundation of successful marketing is building trust with the customer and creating real value for the product.” Therefore, companies begin to face loss when they sell an image that is bigger than the value they actually provide.
The Saudi customer is not easy to convince, and is too aware for their relationship with delivery apps to be managed through inflated order values or empty marketing promises. This also includes some delivery apps relying on price burning strategies, where they offer meals at massive discounts to attract new consumers. This marketing method creates a temporary customer who comes for the price and leaves once the price returns to its real value.
How Can You Get Closer to Your Customers and Keep Them?
Understanding customers is important because they are the target of any brand. Therefore, brands must follow clear steps that help them get closer to customers and understand their needs, including the following:
First, offer consumers a clear experience that respects their time and decision, because customers do not want to make a major effort to understand the offer, reach their order, or know the final cost. The easier the journey inside the app is, the clearer the prices and fees are from the beginning, and the shorter the ordering steps are, the more the customer feels that the platform was truly designed to serve them.
Second, maintain a convincing marketing presence, because when a brand is absent from the customer’s mind or appears through weak campaigns, it leaves a wide space for doubt. The experience of an app like Nana can be viewed from this angle, as it operated in an important and vital field such as grocery delivery, yet its marketing presence was weak.
Third, it is preferable to use the available data to personalize the customer experience. Suppose a customer orders burgers every week. This means they do not want to see sushi ads on the app homepage. In fact, 76% of customers prefer to buy from brands that provide recommendations based on their actual behavior, not on random campaigns that can be sent to everyone.
Fourth, greater attention must be given to customer continuity. Many apps spend their budgets on attracting new customers and forget those who order from them every day. Accordingly, programs such as Jahez Prime have changed this equation, as the customer pays a monthly subscription and receives free delivery, which makes them feel that the more they order, the more value they gain.
Fifth, operational challenges must be fixed before the customer notices them. In reality, when the customer opens the app, they are either hungry, in a hurry, or both. For this reason, unjustified delays are among the reasons that make the customer look for an alternative. Therefore, apps that solve user problems achieve double retention rate compared with others, according to recent data.
The Main Lesson from the Market
The Saudi app market has witnessed strong models that quickly rose on trend indicators and gained a noticeable presence across digital platforms, yet they were unable to keep up with the change in consumer behavior. On one side: “Shgardi” app announced its permanent shutdown after six years of operation, due to operational shortcomings that led to an unsatisfactory experience. Its system required the courier to arrive at the restaurant before the order preparation could begin, which caused repeated delays in preparation and delivery and pushed customers toward smoother alternatives.
On the other side, “Nana” entered financial restructuring after being one of the prominent names in grocery delivery, as it faced operational challenges directly linked to its relationship with consumers. The main reason goes back to repeated technical issues in the app, delayed shipments, and missing requested products at delivery, which shook customer trust and reduced loyalty rates.
Between the two experiences, the most important lesson appears clearly: if you do not meet customer expectations by understanding their changing needs and providing an experience worthy of their trust, you will not be able to build a long term relationship with them.
In conclusion, continuing in a competitive market requires understanding changing behavior. Those who bet on growth may gain attention temporarily, but those who understand the customer and provide clear value are the closest to survival.