How AI is transforming the CRM and loyalty landscape in the Middle East

Artificial intelligence (AI) is already a game-changer in marketing. This is true around the world—but are there particular possibilities and potential in the Middle East? The region has some unique characteristics that provide both challenges and opportunities. In this series of articles, I am talking to senior marketers around the region to see how their organisations are using AI, and what is happening about the use of AI more generally in their country.

For this third article in the series, I spoke to Begum Kaya, who is the Global Head of CRM and Loyalty for Pizza Hut at Yum! Brands. She suggested a very clear definition of AI, as the capability of machines to carry out tasks that usually require human intelligence. She noted that this would include activities like data aggregation, learning, reasoning, problem-solving, analysis, and making recommendations. She believes that the impact of AI will be transformational, given its capabilities.

“If I were to summarize the transformation, which places customers at the core of the CRM and Loyalty marketing strategy, it would center around five key areas: better segmentation, deeper personalization, advanced predictive analytics, improved optimization and efficiency, and ultimately, elevated customer experiences.”

AI and Marketing in the Middle East

The Middle East is still classed as a developing region, but Begum notes that it is rapidly advancing to global standards. Middle Eastern countries tend to have young, tech-savvy populations, and therefore rapidly growing digital adoption. She believes that AI offers significant opportunities for businesses in the region to improve customer engagement, retention and growth.

“By integrating AI, businesses can analyze data from multiple sources, such as social media, in-store, and online, and do that more efficiently. This means they can offer a more personalized experience. I believe this is crucial in a region with such diverse cultures and preferences.”

She adds that AI is also valuable in automating CRM tasks and providing valuable insights. Examples she provided include the simultaneous execution of multiple A/B tests and running predictive analytics to help companies forecast market trends and customer behaviors.

“A specific example of leveraging AI is in customer churn prediction. This allows businesses to implement retention strategies proactively before losing customers, and therefore adapt to evolving industry dynamics and enhance customer experiences. This can help them stand out in challenging and highly competitive markets like the Middle East.”

Enhancing customer experience

Begum suggests that AI’s role in CRM and loyalty programs will enhance the customer experience. The key will be in the ability to analyze huge amounts of customer data, and then use that to offer tailored experiences. We can expect to see marketing messages, product recommendations, and loyalty rewards all customized and matched to individual preferences, providing a more relevant and engaging

experience for each customer. Tailored offers will include exclusive experiences and customized promotions, marking a move from transactional to experiential loyalty—particularly important as Gen Z becomes more influential in the market. This shift is occurring rapidly in the Middle East, driven by its youthful demographic.

“A recent customer research study in the UAE highlighted a disconnect between loyalty programs and consumer desires, revealing that Gen Z is moving away from transactional loyalty, such as collecting points for discounts. Instead, they are looking for rewards in the form of experiences, like cultural activities, VIP tickets, and exclusive product previews, which foster a deeper connection with the brand.”

AI is crucial in making this transition, because of its ability to learn over time from past customer interactions within CRM communications and loyalty programs. Begum suggests that we are likely to see new benefits emerging as the use of AI grows and evolves. She notes changes in how it has been used over time, citing the recommendations engines used by both Amazon and Netflix as good examples of how businesses use AI to improve the customer experience. She explains that AI is already being used by Pizza Hut to improve reactivations and conversions.

“At Pizza Hut, we foster an ‘always-on’ test-and-learn mindset across our markets to share insights, harmonize tech stacks, and achieve genuine 1:1 personalization. By experimenting with different elements like copy, calls to action, creatives, timing, and offers, we deliver personalized messaging effectively and gather valuable consumer insights, which we then leverage in our business decision-making.“

She adds that progress has been insightful.

“We are transitioning from traditional rule-based experiences to more personalized ones, and AI is playing a pivotal role in this shift. Early pilots in Pizza Hut US have shown a strong impact in customer re-engagement. Our goal is to achieve significant AI-driven successes through key use cases across Pizza Hut markets while continuously learning expanding these efforts.“

Delivering the future

There are, however, some barriers to adoption of AI. The main issue is the availability of data, coupled with cost implications. This may be particularly important for smaller businesses, or those in less digitally mature markets. Resistance to change can also be problematic, especially if employees are concerned about AI ‘taking their jobs’—but decision-makers are also rightly skeptical about whether AI is really the answer to everything. Concerns about data privacy, and how to use personal data in the light of legislation such as the EU’s General Data Protection Regulation (GDPR), can also slow down adoption. If nothing else, we can hope that these concerns make businesses cautious about having adequate consent to use customer data for training AI. These concerns are not unmanageable, but Begum notes that they need care.

Begum states Yum! Brands is driving AI initiatives, with Pizza Hut adapting to become a customer-driven, modern, and insights-focused organization and continues:

“Yum! Brands are actively advancing these initiatives and have established a cohesive AI vision and goal to engage all its brands in the journey. At Pizza Hut, we are aligning this AI vision and goal to transform Pizza Hut into a customer and insights-driven organization in the realm of CRM and Loyalty. We hope that this will ensure that Pizza Hut continues to be a relevant, modern brand while also enhancing our know-how and practices.”

It has been a very insightful discussion with Begum, who brings a wealth of experience in CRM and loyalty domain. We would like to hear from other CRM and loyalty professionals in the region: What about your experiences in adapting AI to your work?

In my next article, we will dive into the media world and meet another inspiring woman from the region: Devrim Melek, VP of Strategy at OSN. Stay tuned to read how media industry is using AI in marketing.

Nurcan Bicakci Arcan

MMA MENA Board Member & Chair of AI & Data Committee