Evolution is the key to retaining loyalty



I recently experienced a rather weird scenario.

I woke up one morning and noticed my room needed to be repainted. The colour that was once bright had lost its shine and there were minor cracks on the wall. It seemed strange as I spend every day in that room and had never picked up on this before. That day, however, my room looked completely different to me.

I asked myself why I had never noticed this before. And then it hit me. It was because I was wearing contact lenses. My eyesight is not quite perfect. Although I can get away most of the day without wearing glasses, putting them on makes a huge difference, especially when I drive at night. My brother often teased me about it, especially if I asked him to read signboards that were far away when we were out and about.

“Wear your glasses,” he’d tell me.

“They don’t look great,” I’d reply.

Contact lenses were not the solution either. I could not get used to them and they took a few extra minutes to put in – time I could not be bothered to spare. Anyhow, I finally gave in and, consequently, the world came into a new perspective. I then wondered why I had not done this sooner.

As I became accustomed to a brighter, higher quality vision, it was hard to imagine going back to the eyesight I had before. What was once acceptable was no longer at all.

My story reminded me of a key aspect of marketing a business that many entrepreneurs overlook.

Just because a product or service is faring well in the marketplace today does not mean that you should sit back and do nothing. The business world evolves every day. Your customers today may not be the same tomorrow. If you lose them, it may be hard to win them back.

A friend of mine would often argue: “If it’s not broken why fix it?” She used to manage a small clothing business in Bahrain.

Her first collection was extremely popular and her line was picked up by a number of boutiques. But she did not evolve her designs any further, refusing to keep up with the latest fashion trends or integrate them into her work.

Instead she stuck to her tried and tested formula, continuing to produce the same line of clothing with minor variations. Soon enough, the boutiques she worked with cancelled their consignment agreement and stopped submitting new orders. She was devastated, and to avoid damaging her business any further, she lowered her prices. It worked for a while but eventually she closed the enterprise down.

A dentist I used to visit had a similar philosophy. His clinic was once the go-to place in Abu Dhabi but it’s not so any more. He never developed the business; during a recent visit with a friend, nothing had changed since my last visit seven years ago. He did not offer the latest in cosmetic dentistry – something his fellow competitors did – and by not doing so many of his customers took their business elsewhere.

This takes me to my next point. Use your customer’s loyalty and enthusiasm for your brand to help develop it further. You can do this by involving them in the process. Make them feel like it is their brand as much as it is yours. If you own an eatery, then ask your customers what they would like added to the menu.

Yes, the soul of your business should remain the same, but ignoring market trends could cost you customers.

By continuously developing and evolving, not only will you retain your current customers but you will also attract new ones.

Manar Al Hinai is an award-winning Emirati writer and communications consultant based in Abu Dhabi. Twitter: @manar_alhinai.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

MATCH DETAILS

Barcelona 0

Slavia Prague 0

WHAT IS THE LICENSING PROCESS FOR VARA?

Vara will cater to three categories of companies in Dubai (except the DIFC):

Category A: Minimum viable product (MVP) applicants that are currently in the process of securing an MVP licence: This is a three-stage process starting with [1] a provisional permit, graduating to [2] preparatory licence and concluding with [3] operational licence. Applicants that are already in the MVP process will be advised by Vara to either continue within the MVP framework or be transitioned to the full market product licensing process.

Category B: Existing legacy virtual asset service providers prior to February 7, 2023, which are required to come under Vara supervision. All operating service proviers in Dubai (excluding the DIFC) fall under Vara’s supervision.

Category C: New applicants seeking a Vara licence or existing applicants adding new activities. All applicants that do not fall under Category A or B can begin the application process through their current or prospective commercial licensor — the DET or Free Zone Authority — or directly through Vara in the instance that they have yet to determine the commercial operating zone in Dubai. 

Company Profile

Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books 

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

A Long Way Home by Peter Carey
Faber & Faber

Stamp duty timeline

December 2014: Former UK chancellor of the Exchequer George Osborne reforms stamp duty land tax (SDLT), replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:

Up to £125,000 – 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; More than £1.5m – 12%

April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.

July 2020: Chancellor Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.

March 2021: Mr Sunak extends the SDLT holiday at his March 3 budget until the end of June.

April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.

June 2021: SDLT holiday on transactions up to £500,000 expires on June 30.

July 2021: Tax break on transactions between £125,000 to £250,000 starts on July 1 and runs until September 30.