Rewards programmes embracing cashback strategies to engage consumers
By our News Team | 2021
Yes, rewards programmes do open the door to cashbacks – but consumers still have to walk through it.
We are living in a time where ‘every bit counts’. The fact that Covid-19 will remain with us for some time yet also means that economic uncertainty will continue for the foreseeable future.
Given this reality, many African consumers are looking to their rewards programmes to help them save and take advantage of the rewards on offer, particularly the immediate and practical gratification of cashbacks.
The 2019/20 Truth & BrandMapp Loyalty Landscape Whitepaper noted that 72% of South Africans who were economically active, engaged with rewards programs. However, the same report also showed a gradual decline in usage over time, with a 7% fall from 2017 to 2020.
Rewards programs motivate consumers by offering them benefits when they spend their money or practice certain behaviors. More importantly, they help them stretch their funds at a time when they need it the most. So, while consumers could benefit significantly from these savings, they are not taking full advantage of the rewards that these programs offer.
Helping members make better life choices
Johan Kleu, Executive Head of Multiply, the rewards program run by insurance company Momentum, says its key focus is to reward members for healthy behaviors.
“Our program is designed to help members make better life choices – and get rewarded for it. However, at the same time, there is a responsibility on the part of our members to engage with our programme to get the most out of it,” he explains.
Knowing that the value of a rand in the wallet of every member has become more significant, Kleu says: “The truth is, cash has never been more king, which is why this kind of reward offering is so popular.”
For this reason, rewards programs are continuously evolving their reward structures to reflect the needs of their members. Currently, this means cashback on groceries, health products, clothing, and even online entertainment platforms like Showmax – all highly-in-demand commodities in the age of a pandemic.
Source: Momentum Multiply