3 minute read
New programmes
New kids on the block
South Africa’s loyalty and rewards industry has enjoyed exponential growth during the past decade. KIM MAXWELL finds out what the newest entrants to the market are doing to deliver more value
One of the most successful new entrants in the rewards industry is the Checkers Xtra Savings rewards programme. Launched in October 2019, it signed up more than five million customers in less than a year – a staggering one million joined the programme in 72 hours. The company says the programme “surpassed expectations” while putting back R1-billion in consumer pockets through savings and discounts.
The Xtra Savings rewards programme confirmed a need to offer “relevant and unique
A Checkers spokesperson says Xtra Savings was developed in response to customer research highlighting their frustration with loyalty programmes with slow-earning points, complicated tiers, clumsy paper-based signups or small discounts on irrelevant products. “Consumers were ready for real rewards – without any smoke and mirrors – in the form of simple, transparent and meaningful savings.”
Yes, ease of use is relevant for today’s loyalty customers. Xtra Savings relies on free member sign-ups in store, or paperless via digital registration. Offers are loaded directly on a card for redemption at tills. There are no points, tiers or levels, only “instant cash savings of up to 40 per cent on everyday grocery purchases”. Its omni-channel format means deals can also be viewed on WhatsApp, the Checkers app, the website, on leaflets or in-store.
With more than 19.3 million shoppers, the broadest customer demographic base. Shoprite Group says it serves South Africa’s experiences to individuals” that were “beyond broad-based segmentation”. Household spending being under increased pressure may have been a contributing factor. The Checkers Xtra Savings customer base includes working professionals, parents and small business owners, from 18-year-olds to a centenarian. What do they have in common? They are “all looking to save more on the products that they love”.
Wimpy Rewards
Wimpy rolled out its Wimpy Rewards loyalty app this June. On the rewards programme, dining consumers can earn and burn points from in-store purchases, be rewarded for birthdays, receive only-on-app special offers, and settle their bill.
Wimpy marketing executive Jacques Cronje emphasises that simplicity of app functionality is key. “Consumers lose interest with complicated reward programmes. The simpler, the better,” he says. Customised promotional offers and app-exclusive deals are the drawcard. “The user journey is intuitive and the rewards mechanic is simple: you get rewarded for choosing Wimpy.”
IT’S ALL ABOUT PERSONALISATION
“You have to spend a fortune to earn good rewards” was the number one frustration (45 per cent) cited by respondents in the Truth and BrandMapp South African Loyalty Landscape Whitepaper 2019/20 survey, collating responses from nearly 29 000 economically active South Africans. And it correlates to the reason some consumers say they avoid loyalty programmes: “I don’t spend enough to earn decent rewards.”
Meanwhile, 38 per cent of consumers nd “offers that aren’t relevant to me” to be a major frustration. This highlights the importance of customer personalisation in loyalty programmes, which is something South Africa’s most-used loyalty programmes all say they offer.
Source: Truth and Brandmapp South African Loyalty Landscape White Paper 2019/20
Wimpy Rewards
Cronje says brands need to be more human and authentic in their approach to consumers. Customers simply download the Wimpy Rewards app and start using it. “The app outperformed our expectations,” said Cronje. “One of our first promotional offers on the app was scheduled to run over two weeks. The promotion did so well that we sold out on day one.”
IS CARD STILL KING?
Simplicity remains a deciding factor in using loyalty and rewards programmes. Despite the evolution towards using apps, research indicates that customers still favour the reassurance of a physical card in their wallets. The Truth and BrandMapp South African Loyalty Landscape Whitepaper 2019/2020 reported that 73 per cent of customers surveyed still prefer using a physical loyalty card.
Fifteen per cent of loyalty programme non-users claim “they are too hard to understand” and 8 per cent claim “they are just too much hassle” – a warning retailers in a competitive environment should heed: keep things simple for loyal consumers.
