Sunday Times Lifestyle Loyalty Programmes Focus (April 2021)

OCUS LOYALTY F

Pick n Pay’s Smart Shopper card has 8.5-million active users and reached its highest level of participation this year after launching a decade ago. Picture: Supplied

24/25

THE FUTURE OF LOYALTY PROGRAMMES

Those that adapt to changing consumer behaviour keep the shoppers coming back, writes Sanet Oberholzer Clicks has seen a significant move online since lockdowns began. Picture: Supplied

L

oyalty programmes are proven performers when it comes to buying behaviour. However, according to new research from McKinsey, consumers are more willing than ever to try out new stores, brands and websites as a result of the Covid-19 pandemic.

Jess Huang, a partner at McKinsey & Company who co-leads their loyalty work, says consumers are not necessarily becoming less loyal. “It’s just so much easier for them to try something new,” she says. “So brands are really attempting to figure out a way to develop and maintain that relationship with the consumer.”

24

LifeStyle

According to an article published by the company last year, 35% of US consumers have tried new brands since the start of the Covid-19 pandemic, and 77% exhibited new shopping behaviours such as new channels and new stores — a trend that has been observed in consumers around the world.

Clicks chief commercial officer Rachel

18•04•2021

Sunday Times

Wrigglesworth can attest to this shift in shopping trends. She says the company has observed a significant move to online shopping since the beginning of the Covid-19 pandemic, with a growth of 191%.

Andrew Mills, Pick n Pay retail executive in marketing, concurs, saying more customers started opting for the ease of online shopping during lockdown and have continued to be regular online shoppers.

But despite this shift in customers’ preferred shopping channel, their Smart Shopper loyalty programme — which to date has over 8.5-million active members — reached its highest participation levels this past year since launching in 2011.

In a similar vein, following the success of the Shoprite Group’s Xtra Savings rewards programme launched in Checkers stores in October 2019, the programme was introduced in Shoprite supermarket chains in October 2020. Since then, it has grown to become one of SA’s largest supermarket rewards programmes with more than 17million members.

“The future of loyalty programmes lies in offering real value in the most seamless way possible,” Mills says. “Our loyalty programme lets us reward our customers, but also enables us learn more about their shopping needs. With this knowledge, we can adjust and innovate our offerings to better serve them.”

Some of the innovations the supermarket chain has implemented include digital grocery vouchers and PnP Mobile, which lets customers earn instant free data rewards by

Dis-Chem rewards and benefits are awarded across the chain’s shopping channels. Picture: Supplied

The Xtra savings card from Shoprite/Checkers will offer a free funeral benefit soon. Picture: Supplied

linking their Smart Shopper card, in addition to existing Smart Shopper rewards and offers.

Johan Kleu, the executive head at Momentum Multiply, says loyalty programmes offer value to members where they need it the most. That said, he is adamant that rewards programmes cannot become complacent.

As part of the Shoprite Group’s strategy of adapting and offering consumers more benefit, Shoprite Xtra Savings members are also able to register for a free funeral benefit — at no cost — as of April 2021.

“Loyalty programmes will continue to remain relevant as consumers are always looking for added value, be it discounts,

business,” she says.

For Blignaut, this means ensuring that customers are made aware of the numerous options available to them via Dis-Chem’s online store and app services.

Says Kleu: “Covid-19 has accelerated the need for digital transformation — particularly across Africa — and rewards will quite literally need to get with the programme or be left behind.”

In an attempt to “get with the programme”, Momentum Multiply decided to make numerous changes to show value to consumers at a time when they were under more financial pressure.

exclusive offers or entry into competitions,” says Lynne Blignaut, head of group loyalty and customer rewards at Dis-Chem. “The economy is strained and we know that customers want real value, discounts and tangible ‘cashback’ in their wallet.”

Blignaut says at the beginning of lockdown they saw a drop in customers visiting stores over the course of a month as people avoided spending time in public spaces, but they did see a large increase in the number of online transactions. “This highlights the importance for brands to evolve and adapt to offer customers the same rewards, regardless of the channel they are using to engage with your

it’s so easy to earn points

what makes ClubCard even more rewarding?

• You earn points when you shop in-store and online at Clicks and our partners.

• You earn points on the dispensing fee of your pharmacy purchases.

• You earn double points when you spend 1000 at Clicks in a 2 month cycle.

For example, in the early stages of lockdown, when South Africans could buy only essential goods, they offered additional cashback at essential goods partners. They also responded to changing exercise trends and the fact that members were not able to go for their normal in-person health and fitness assessments.

“For loyalty programmes to remain relevant now and in the future, they need to recognise the changing market behaviours and reassess how they engage with members — not only to offer the immediate value they seek, but also to retain them as clients into the future,” Kleu says.

Opt in for BabyClub benefits, savings and advice. As a member you earn double points on purchases of most baby products and clinic services. Excludes legislated products.

Club

spend 5.00

ClubCard members who are 60 years or older automatically become SeniorsClub members and earn double points every Wednesday.

spend 5.00

earn 1 point

earn 2 points

= 0.10

= 0.20

2% saving

4% saving

bill payments Earn 20 points* per transaction on bill payments and pre-paid services.

Available on our app.

Enjoy exclusive benefits and earn even more points.

More points. More cashback.

Visit clicks.co.za/clubcard for more information on ClubCard rewards pay less

Not yet a member? Join on the app or in-store.

25

LifeStyle

new benefit

18•04•2021

Sunday Times

OCUS LOYALTY F

Y

SETTING STORE BY LOYALTY PAYS OFF

Sanet Oberholzer asks a range of companies how their loyalty cards work, both in store and online — and finds out what rewards are on offer

our wallet is most likely home to a number of loyalty cards. In fact, the results of a 2018 Loyalty Programme Member Engagement Survey conducted by Eighty20 and Tritech Media showed that the average South African consumer is registered for nine loyalty programmes.

As outlined in the 2019/2020 Truth & BrandMapp South African loyalty landscape white paper, 72% of South Africans who are economically active are using loyalty programmes. According to information available at the time, the mostused loyalty programmes included Clicks ClubCard, Pick n Pay Smart Shopper, DisChem Benefit, Woolworths WRewards, FNB eBucks and Edcon Thank U. But what benefits do they really offer and is it worth carrying around all these cards?

We found out, down to the cent, how some of SA’s most-used reward programmes work and how you can redeem your rewards.

How does your loyalty programme work?

DIS-CHEM The Dis-Chem Benefit Programme offers real cashback to spend, where one point is worth 1 cent, as well as instant discounts on selected products, vouchers, coupons and special offers. Dis-Chem also has several partnerships through which customers can earn additional points, including Discovery Vitality, Total, BestMed, School-Days, Momentum Multiply, Legacy Lifestyle, Absa Rewards, Planet Fitness, MediHelp and Standard Bank UCount rewards.

CLICKS Clicks ClubCard members earn 2% cashback on all purchases and 4% cashback when they spend more than R1,000. In essence, a spend of R250 earns 50 points that becomes R5 cashback as one point is 10c. Seniors 60 years and older earn double points on Wednesdays and BabyClub members earn double points on most baby purchases, so remember to “opt in” your baby who is up to 36 months old.

apply for a physical card in store. A customer’s Benefit card will automatically be linked to their online profile and they will also enjoy all of their partner rewards.

Customers can shop in store without having their card available by presenting a card number or the Dis-Chem app, which displays the card number to the cashier.

CLICKS Points are converted into cashback in a twomonthly cycle. For this to happen, the member needs a minimum of 50 points. Once points are converted into cashback, this can be used at any Clicks and The Body Shop as well as the Clicks online store. The ClubCard member’s digital card is available for use in the Clicks app, making the conversion from plastic to digital cards easy.

Clicks also has ClubCard partnerships where additional points can be earned. For example, at Engen, members can earn one point per litre of fuel. Other partners include Sorbet, Specsavers/Execuspecs, City Lodge and EuropCar. SHOPRITE AND CHECKERS The Xtra Savings rewards programme available at Shoprite and Checkers supermarkets gives consumers simple, transparent savings on their grocery shopping. It involves no points, no tiers and no levels — just swipe to receive instant savings at checkout.

PICK N PAY Smart Shoppers receive instant Smart Price discounts in store by swiping their card at checkout. Additional discounts include personalised discounts, which are loaded onto a Smart Shopper’s profile every few weeks, and are based on the products a customer buys regularly. Smart Shoppers also receive one point for every R2 spent in store and online with the exception of PnP by Bottles, which will soon be integrated with Smart Shopper and offer loyalty points.

Customers can also earn points from Smart Shopper partners, such as BP and TymeBank, and they can switch points for partner rewards in some cases. For instance, Smart Shoppers can switch R50 in Smart Shopper points for a R100 Netflorist voucher.

IMAGE: 123RF.COM/JOINGATE

WOOLWORTHS The WRewards card offers instant savings on selected products and other benefits based on your status level, which is determined by the amount of money you spend: valued member, loyal member and VIP member. To know which products you can save on, keep an eye out for the green WRewards icons in store, online, on the Woolworths app or as part of the Daily Difference promotion. You’ll automatically become a WRewards member if you register for a WRewards card, have a Woolworths store or credit card or are a member of Littleword or WCellar.

SHOPRITE AND CHECKERS The Xtra Savings rewards programme works with a physical card, which delivers savings as you shop.

Shoprite and Checkers supermarkets have also invested in digital channels, including WhatsApp, to ensure an omnichannel digital experience for its customers. These channels have additional features that help members track their savings and view their personalised deals and digital till slips.

How are benefits awarded and how can they be redeemed?

PICK N PAY To redeem points and receive personalised discounts, a customer needs to register their Smart Shopper card. Points are loaded onto a customer’s Smart Shopper card with each swipe and this cashback can be spent directly at the till point. Customers can also earn and spend Smart Shopper points when shopping from Pick n Pay’s online shop.

DIS-CHEM Benefit cardholders can shop in store or online to earn rands to spend, redeem vouchers, benefit from instant discounts and earn partner rewards. Customers can apply for a digital Benefit card via the USSD string *120*1085#, online, via the Dis-Chem app or

WOOLWORTHS Swipe your card or present your virtual card on your Woolworths app to benefit from instant discounts in store. When shopping online, make sure to link your Woolworths card to your online profile to qualify for instant savings.

A new normal for society means a new definition of value for loyalty programmes

F

or a brand like Momentum Multiply, with a foundation built on providing value to its members, the last year has enabled a strategic shift in how this loyalty programme engages with its members in a changing world.

Elaine Holmes, Executive of Marketing and Sales at Momentum Multiply, says, “Loyalty programmes have always been in the business of rewarding certain behaviours of consumers.

The past year has taught us that we need to be nimble to better cater to the needs of our members, while considering the broader context so that we can provide them with real value.”

According to her, Multiply based its 2021 strategy on identified shifts in behaviours exhibited by its members, with a focus on the following strategic pillars: Cashbacks

Aside from the apparent threat to public health and the lives of South Africans, the economic devastation wrought by Covid19 could be its deadliest effect. With unemployment at over 30% and 7,2 million unemployed South Africans, South African household finances are more than a little stretched.

“As we are part of a financial institution, Momentum, it makes sense that we want to help our members and our clients stretch

their rands as far as they can go,” says Holmes. “For us, 2021 will be a year where we focus on elevating cashback rewards to help our members cope with these financially constrained times.”

Saving on insurance premiums In line with helping consumers stretch their budgets, Holmes believes that the core of Multiply’s value proposition and strategic heart will remain intact. That is, allowing members to get up to 60% off their monthly Momentum Life Insurance premiums, up to R3 000 in HealthReturns per month from Momentum Medical Scheme and up to 30% back on their short-term insurance.

Members can also earn up to 60% in EmployeeReturns on qualifying FundsAtWork insurance premiums, which they can use to boost their FundsAtWork retirement savings account, or their Momentum HealthSaver account.

“As the pandemic has generated a substantial increase in awareness around death and illness, there is more emphasis on and interest in protecting loved ones against the unforeseen,” says Holmes. “However, as consumers’ wallets have also taken a knock, the need to increase access to cover makes these savings a pivotal part of the value that Multiply offers its members.”

27

LifeStyle

Fit-for-purpose fitness Multiply’s highly engaged members tend to see the brand as mainly focused on their physical wellness. Although this is not the case anymore as the brand moves towards a more holistic wellness model, we remain committed to the improvement of physical health to accommodate changing lifestyle trends.

“We are moving towards more of a blended fitness philosophy. Even before the time of Covid-19 – which saw the mandatory closure of gyms – we noticed that members showed increasing interest in alternative forms of physical activity outside of gyms.

While traditional fitness studios remain popular, there is now a far greater interest in self-driven and social fitness activities.”

Given the rapid adoption of digital wellness technologies and advances in fitness apps and wearables, Holmes states that Multiply will continue to evolve to track, recognise and reward Momentum clients for being active in whatever way they prefer.

Travel is still king Travel will always remain a core proposition for Multiply’s members. “The continued interest in travel is evidenced by the recent Easter long weekend. We are still technically in lockdown, yet traffic clogged the highways coming into Gauteng

18•04•2021

Sunday Times

as holiday-goers returned home on Easter Monday. Imagine the demand when we have achieved population immunity through the vaccination rollout.”

Multiply has developed a 24/7 digital travel booking platform that enables members to make all their travel bookings with Multiply travel partners on one platform.

The member remains the anchor The word pivot has been thrown around a lot in the last year as businesses and brands have scrambled to remain relevant. For Holmes, the basis of success will always lie with the customer. “In times of crisis, people tend to look for more value. In these times it becomes incumbent on brands to recognise changing market behaviours and reassess how they engage with consumers – not only to offer the immediate value they seek, but also to retain them as clients into the future.”

BENEFIT Programme Instant discounts & rewards • Earn Dis-Chem Benefit rewards when purchasing all your purchases and redeem those rewards against future purchases* • Get instant discounts on a wide variety of everyday products in-store* • PLUS get automatic entry into competitions when swiping your card with qualifying purchases

Earn even more with our partner rewards

Receive a FREE Benefits magazine quarterly With new articles in the latest edition containing expert advice and tips on beauty, health and your well-being.

Available in-store and online OR visit www.dischem.co.za/media/full-benefits-magazine/ for the digital edition.

Choose your interest group and get even more Speak to a Customer Consultant in-store to activate an interest group and get amazing deals tailored for you, just visit www.dischem.co.za to find out more.

• 60 Plus - Double points Wednesdays • For Youth - Double points Mondays • Dis-Chem Baby - Qualify for a free baby bag and more

Give back to the Dis-Chem Foundation By shopping and swiping your Dis-Chem Benefit Card, not only do we reward you, we also donate a percentage of all eligible purchases to the Dis-Chem Foundation to assist people in need and contribute to good causes. *Ts & Cs apply. Exclusions apply

Get your Digital Dis-Chem BENEFIT Card now Register or update your details. Simply dial

*120*1085#

and follow the easy steps.

You can now earn your beneƓt points in-store using your virtual Dis-Chem BeneƓt Card.

You can use it to shop, earn and redeem on our online store.

Go Advertising 41428