LOYALTY PROGRAMMES

More than 70% of South Africans consistently using loyalty schemes

By our News Team | 2022

Usage has grown from an average of 3.6 loyalty programmes per person eight years ago, to 9.2 programmes in 2022, annual study finds.

More than 70% of South Africans continue to make use of loyalty programmes, according to the ‘Truth & BrandMapp South African Loyalty Whitepaper’ for 2022.  

The findings of the annual study have shown in recent years that the country’s consumers have a consistently high interest in loyalty, says Amanda Cromhout, CEO of Truth, a Cape Town-based consultancy firm specialising in customer loyalty.

“We have seen an explosion in the volume of programmes which South Africans use over the past eight years.  This has grown from an average of 3.6 programmes per person to 9.2 programmes in 2022,” she stated.

Loyalty programmes

Photo by Andrea Piacquadio from Pexels

In terms of the kinds of rewards that consumers expect for their loyalty, cash continues to be king. Getting cashbacks from points earned remains the number one loyalty benefit of choice across all ages, income and genders.  

The study asked consumers if they prefer to save points for a bigger reward, or to be instantly rewarded. The responses fell into three groups: those who wish to save points for a bigger reward, those who wish to be instantly rewarded, and those who want both.  

Cards still more popular than apps

Perhaps surprisingly in the digital age of smartphones, consumers still prefer to swipe a loyalty card than identify themselves via apps or other digital means such as digital cards.

This year, for the first time, the loyalty whitepaper provides additional insight into the loyalty behaviour of the country’s mass-market consumers with a household income of R10,000 (US$584) or less.  

The researchers found that 82% of mass-market consumers are using loyalty programmes and that these offerings strongly influence their choice of shopping and banking brands. 

Shoprite Xtra Savings is the most used loyalty programme for the lower-income consumer, followed by Pick n Pay Smart Shopper. The most used financial services brand is Capitec Live Better, a relatively new loyalty offering in the South African market.

Among higher-income consumers, the Clicks chain regains its status as the most used loyalty programme for the fourth time since the whitepaper series began in 2015. Almost 80% of South African consumers who use loyalty programmes claim to use the Clicks ClubCard.

Outside the retail sector, FNB eBucks and the Spur Family Card retain their top positions as the most used financial services and QSR/restaurants loyalty programmes, respectively. In terms of the loyalty programmes which South Africans claim they can’t live without, Discovery Vitality and Standard Bank UCount are the winning brands.

To view the full 2022 Truth & BrandMapp Loyalty Whitepaper, visit www.truth.co.za/articles/whitepapers

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