These are the most and least popular loyalty reward programmes in South Africa in 2018

Pharmacy and beauty retail continue to dominate when it comes to loyalty programmes in South Africa, according to a new report published by Truth, a boutique consultancy specialising in customer centricity, CRM and loyalty programme development.

Clicks Clubcard remains the top loyalty programme at 72%, 12% points ahead of Pick n Pay Smart Shopper at 60%. Dis-Chem Benefit Programme ranks as the third most used programme – and together with Clicks shows that loyalty for pharmacy and beauty retail is strong.

The results are the latest findings of the 2018/19 Truth and BrandMapp South African Loyalty Landscape Whitepaper, a comprehensive annual snapshot of the loyalty habits of 25,369 adults with a gross monthly household income of R10,000 or more.

 

The total number of respondents using loyalty programmes is 75%, with a slight decline of 4% points from 2017. Up until now, loyalty usage has grown year on year. The South African loyalty landscape has entered a level of maturity when it comes to how consumers are using loyalty programmes, said Truth.

Amanda Cromhout, founder and CEO of Truth, said:“This maturity witnessed in the market is a combination of consumers being more astute, as well as brands aiding this to happen: i.e. educating members how to get the most out of the programme. Increased participation in these programmes brings  increased points redemption and higher levels of engagement.”

The results among the retail banking loyalty programmes remained unchanged. In dialogue with FNB eBucks, Standard Bank UCount & Absa Rewards, all see their loyalty propositions as a means to help South Africans in these cash-strapped difficult times. All specifically state that their partnerships in either grocery and fuel really help their customers.

  • FNB eBucks is still the most used loyalty programme in the banking space, clinching the sixth spot overall, with 36% of respondents using eBucks
  • Absa Rewards & Standard Bank UCount, remain at 11th& 12thposition respectively and Nedbank Greenbacks, is placed at no. 18

The most used loyalty programmes in South Africa in 2018:

The 2018/19 whitepaper reveals that 59% of survey respondents who use loyalty programmes prefer to use a card, whilst 47% prefer to use an App. 33% of the survey respondents would prefer an automatic system that identifies them at the paypoint.

Card usage is still highly adopted by South African consumers. Brands need to realise the different needs consumers have across different channels.

Ros Netto, Loyalty & CRM consultant at Truth said: “It is no longer an “either/or” debate about having a physical card or an App. It is rather a strategic decision to ensure that your programme responds to what your consumers prefer to ensure that their expectations are met and that you offer a seamless experience regardless of channel.”

Eight out of 10 respondents said they belong to a loyalty programme to collect points and earn rewards. 51% say they belong to loyalty programmes to save money.

In a tough economy, consumers continue to search for monetary value. This is evident in the results showing consumers still prefer cashback (73%) and instant discounts (57%) over any form of VIP treatment, such as priority queues or exclusive experiences.

 


Read: These are the best loyalty programmes in South Africa

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