South African consumers are buying into loyalty programmes in a big way

Amanda Cromhout, CEO of customer loyalty consultancy Truth, says South Africa can be now regarded is a mature loyalty market. Over the past 10 years, usage has grown from an average of 3.6 programmes per person to 10.3 programmes per person. 

Loyalty apps less popular than cards 

Cash-back rewards remain the number one loyalty benefit of choice. Perhaps surprisingly, consumers still prefer to swipe a loyalty card than identify themselves via apps or other digital means – although that gap is narrowing. Sixty-six percent of South African consumers prefer to swipe a physical card and 34% prefer to use an app. 

For the first time, the study also explores whether loyalty programmes influence consumer behaviour in relation to social causes they care about. South Africans show less concern towards sustainability, instead preferring education as the social cause they like to support. 

ClubCard – the loyalty programme of health, beauty and wellness retail group Clicks – is most popular loyalty programme in the country, with 80% of respondents to the study saying they use it. 

“Clicks ClubCard cash-back is used as a currency for financial survival, and we see redemption of cash-back at an all-time high. Members don’t just spend their cash-back on luxuries, but often on staples like soap and toilet paper,” comments Dr Melanie Van Rooy, Chief Marketing Officer at Clicks Group. 

Outside of the retail sector, FNB eBucks and Spur Family Card retain their top positions of the most used banking and quick-service restaurant loyalty programmes. 

You can find out more about the ‘Truth & BrandMapp Loyalty Whitepaper 2024/5’ here.