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

More South Africans are using loyalty programmes than ever before, led by a 13% growth among the younger population – under 25 years of age.

This is according to the second edition of the 2016 Truth Loyalty Whitepaper, based on findings from 27,446 respondents.

The results of the 2016 survey show that Pick n Pay’s Smart Shopper programme remains the number one most used programme in South Africa, with 71% of respondents belonging to the programme whose membership currently sits at approximately 10.7 million.

In 2016, Clicks Clubcard has surpassed Edgars Thank U, rising to 62% from 59% while Edgars has dropped by 14% to 45% of respondents.

“While the loyalty landscape continues to become ever more competitive, the solutions are evident for brands wanting to differentiate themselves by offering more compelling value propositions. They just need to listen to their customers,” the report’s authors said.

“More recently we’ve seen a number of brands really up their loyalty game in terms of innovation and designing offerings that their customers really want. The figures reflect this because now customers actually experience tangible benefits,” said Amanda Cromhout, founder and CEO of Truth.

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Sonja Fourie, head of ABSA Rewards and VAS said that loyalty in SA is following the global trend of moving away from pure rewards, earn-and-burn programmes to personal and personalised interactions.

These rewards stretch further than just name personalisation in emails towards big-data analysis of individual consumer behaviours and needs and the subsequent addressing of those needs.

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According to the 2016 Truth Loyalty Whitepaper – a collaboration between Truth and WhyFive –  mobile adoption in the loyalty space has experienced a surge and Cromhout believes that as this adoption of mobile and omni-channel innovation grows, so too will the interest of younger consumers.

Cash is king … and so are vouchers and discounts

For brands wondering about the preferred types of rewards, the message is simple: cash is king. These monetary benefits can however include discounts, coupons, a voucher or savings. Interestingly, this trend is broadly observed across gender, age and income but more women appear to prefer cash back rewards (at 70%) than men, of whom 56% indicated the same.

According to Cromhout, although a cash-back programme has a hard cost associated with it, the benefit is dramatically increased redemption, which in turn translates into a decreased liability element associated with the loyalty programme.

“In our experience, an unconditional cash back voucher (i.e. receive R10 off immediately or off your next purchase) can achieve higher redemption levels as compared to a campaign-led conditional voucher (i.e. R50 off of R250 spend), where redemption rates can be as low as 2-5%,” Cromhout said.

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