ST Lifestyle Loyalty Programmes (April 16 2023)

LOYALTY PROGRAMMES ENTRENCHED IN CONSUMERS’ LIVES

In the past two years, the South African loyalty industry has become stable and mature, with research revealing that citizens are using more loyalty programmes than ever

According to the 2022 Truth & BrandMapp Loyalty Report, 73% of economically active citizens are using them It also found that South Africans are, on average, using more than nine programmes, up from 3 6 in 2014

The report, based on the annual BrandMapp study by consumer insights consultancy WhyFive, outlines how South Africans are using loyalty programmes and what their preferences and motivations are towards loyalty

“Loyalty programmes have become ingrained in the lives of consumers and we don’t expect that trend to change any time soon,” says Brandon de Kock, director of storytelling at WhyFive

“Brands that don’t have a loyalty programme, or are not connected to a programme in some way, are behind the curve because increasingly, a loyalty programme is one of the only ways an organisation can differentiate itself in a highly commoditised world ”

To remain relevant, loyalty and reward programmes need to deliver on their primary mandate, which is to save customers money, he says “However, there is a gap between what businesses want their loyalty programmes to deliver increased customer loyalty and greater spend per customer and the desire by customers to save money ” If the programme is not delivering savings, then it needs to address another need, which could even be an altruistic donation to charity, says De Kock “The ability to donate to charity

without any effort is where a programme like My School excels because it is passing on a benefit for spend that the customer was already spending Another programme that stands out is School-Days, which is based on a brilliant concept, given how critically important education is viewed by most South Africans ” School-Days allows members to raise funds for education by shopping at programme partners including Dis-Chem Members can choose to support their child’s school, the Adopt-a-School Foundation or allocate points towards their child’s education at no cost while they continue to earn their normal retailer loyalty points “There are numerous social causes that can be linked to a loyalty programme,” says De Kock “The challenge for businesses is to listen to their customers regarding causes that are important to them ”

A trend over the past two years has been the shift towards more aggregated programmes and more sophisticated partnerships to offer more attractive benefits “A partnership like Dis-Chem’s with Legacy offers consumers a fairly decent benefit These kinds of partnerships are a sign that the industry is maturing and raises the bar for everyone in the loyalty game Another interesting shift is the way in which the fuel industry is entering the loyalty space ” De Kock differentiates between reward and loyalty programmes

Reward programmes, he explains, reward consumers for doing something they would have to do anyway, while a loyalty programme is something slightly different, as it provides a benefit in return for increased, modified or changed behaviour Earning

BRANDON DE KOCK

rewards for buying fuel, something consumers have to do to drive their cars, is essentially getting something for no effort “And clearly they work because 36% of consumers say loyalty programmes influence where they buy fuel,” points out De Kock Interestingly, though fuel retailers have partnered with other loyalty programmes, only two have their own: Sasol and Shell De Kock believes Shell’s V+ Rewards, which allows members to earn cash rewards for every litre of fuel they purchase and selected shop items, has knocked it out of the park “Earning loyalty rewards for fuel purchases is a relatively new concept in South Africa I love the

idea of being rewarded for something you didn’t expect Imagine if GPs, for example, offered a discount for every fifth visit?”

Other programmes which stand out, believes De Kock, include Clicks ClubCard, DisChem, Pick n Pay Smart Shopper, Checkers/Shoprite’s Xtra Savings, Capitec and FNB Discovery Vitality, which rewards members for behaviour rather than spend, illustrates the scope programmes have to evolve their offering “When we ask consumers why they don’t use loyalty programmes, one of the most frequent responses is that they don’t spend enough to earn decent rewards,” reveals De Kock “Younger people, in particular, are less likely to use loyalty programmes for this reason This highlights the need for loyalty programmes to find innovative ways of rewarding customers for their loyalty, even when their spend is not significant ” Personalisation and relevance are among the biggest buzz words in the loyalty space De Kock maintains both will be key to the success of loyalty programmes in future “It’s critically important that loyalty programmes know their customers and, in general, players in the local loyalty space are getting better at this Customers are more likely to feel the brand cares about them when they receive a personalised offer ”

He argues that in the loyalty space, relevance and personalisation are the same thing offers have to be personalised to be relevant, but they don’t have to be relevant to be personalised “The holy grail are programmes which are personalised and relevant ”

What people really want

For the first time in 2022, BrandMapp research was extended to consumers with a household income of R10,000 and less per month This research was conducted by MoyaApp, a data-free mobile chat, digital content and payment platform MoyaApp found 82% of lower-income consumers use loyalty programmes, compared with 73% in the BrandMapp survey It revealed that these consumers are hugely influenced by loyalty programmes in terms of where they shop (76%), and bank (45%) and the products they buy (43%) This high usage, says the report, is homogeneous across gender, age and sub-income brackets within the consumer group Preferred benefits are cash, followed by data or airtime Educational courses are the fifth most preferred benefit However, 65% of lower-income consumers said they like to build up points for a bigger reward

The most used programme for such consumers is Shoprite Xtra Savings, followed by Pick n Pay Smart Shopper and Capitec Live Better

The simplicity of the Capitec Live Better programme appeals enormously to the less wealthy consumer, says the report Interestingly, half of Shoprite Xtra Savings members are also members of Capitec s Live Better programme MTN YelloBucks and Vodacom VodaBucks are also in the top 10 most-used loyalty programmes

‘Earning loyalty rewards for fuel purchases is a relatively new concept in South Africa. I love the idea of being rewarded for something you didn’t expect Imagine if GPs, for example, offered a discount for every fifth visit?’

Retailers have become more sophisticated in what they offer, and customers have responded enthusiastically

Gamification and other trends are gaining popularity

Some of the biggest trends in the loyalty space locally and internationally have been focused on digital engagement, primarily through mobile integrations and applications, many of them incorporating gamification, hyper personalisation and partnerships Gamification, which allows consumers to earn rewards through bonus points, challenges or multipliers, is one of the biggest emerging trends in loyalty programmes

“Gamification has become a powerful mechanism within the design of loyalty programmes due to its success in motivating customers to perform specific actions or change their behaviour,” explains Gordon Dodge, a consultant at Eighty20

“It motivates customers to do tasks they might otherwise find too serious (save money), too much effort (go to gym), too expensive (upgrade a data plan) or too boring (update personal details) ”

One of the benefits of a gamified experience is the ability to incorporate personalised offers or multipliers based on

the consumer’s purchase history and known history

A good example of this is Free Now, a European ride-hailing service which uses gamification on its mobile app How it works is that users accumulate points whenever they use the service These points can be saved and used to purchase discounted trips Alternatively, users can “spin the wheel” , spending fewer points, with an opportunity to win bigger discounts

Discovery Active Vitality 3 0 is a local programme that is successfully using gamification, says Dodge “Discovery Vitality has continued to introduce new and exciting ways for members to engage with their programme in ways that seem beneficial to members and the company The programme is using gamification to maximise the motivation for members to actively engage with the programme and create opportunities for them to earn real rewards in return ”

Hyper personalisation, on the other hand, uses customer data and insights to provide rewards and offers focused on consumer preferences, past and current

behaviours, says Dodge It also allows for the introduction of methods of engagement that create strong intrinsic motivators that drive increased loyalty and engagement

The Truth & BrandMapp Loyalty Report maintains that personalisation is essential to build customer loyalty and that for communications to be effective, they need to be relevant “Absence of personalisation leads to valueless noise; without personalisation, customers become disengaged and leave your brand,” says Dodge

The report recommends loyalty programmes remain relevant on two levels: rewards and communication This is because customers don’t respond purely to loyalty programme incentives, but rather to the brand’s relevance to their needs

Dodge believes Shoprite and Checkers’ Xtra Savings Rewards programme stands out in this regard “XtraSavings launched in 2019 and has grown membership of the programme to more than 24-million members Not only are members getting access to easily accessible deals with real savings, but regular personalised offers with additional value-added services

being added to the programme regularly They all add to the appeal of the programme for consumers ”

Strategic partnerships with other businesses that expand the offerings of the loyalty programme are another major trend that is gaining traction

Other programmes that impress Dodge include Clicks ClubCard and Standard Bank UCount “Clicks ClubCard has consistently pushed new and innovative ways to engage with and reward customers From expanding the opportunity to earn more cashback through other health, travel, fuel and beauty partners, to special benefits for parents and seniors, Clicks consistently takes a customer-first approach ” Standard Bank UCount impresses him for its wide-ranging earn categories “UCount, which celebrates its 10th birthday this year, allows members to earn up to R10 per litre of fuel back at Caltex, as well as the ability to earn points on grocery spend at all major grocery retailers, vouchers and bonus points for completing personalised offers in Goals and Gains, as well as additional earn from more than 30 reward retailers

Working out what makes a successful programme

There is no one-size-fits-all when it comes to what constitutes a successful loyalty programme and every potential offering needs to be linked to the needs of its current and future customer bases, says Gordon Dodge, a consultant at Eighty20

“Successful programmes are those that provide valuable data for brands to drive the business forward in terms of growth opportunities,” he says Programmes that work typically include a number of key elements Chief among these, says Dodge, is a clear value proposition “Customers need to have a clear understanding of the value they will receive and what they need to do to receive these benefits If they understand the benefit, they will be motivated to join and consistently engage with the

programme,” he says, adding that over and above rand value, an intrinsic emotional connection or value-based reward are key drivers to motivation and loyalty Ease of use is also important “The structure and design of the programme needs to be straightforward and easy to engage with Ideally, any programme should seamlessly fit into the customer journey A complicated or burdensome programme is likely to become discouraging over time,” says Dodge Increasingly, personalised offerings are becoming a key element of successful loyalty programmes Dodge explains that to succeed at personalised offers requires the organisation to master its customer data and draw insights from it “Not only does personalisation introduce a feeling

of recognition and relevance to any offer, it makes the benefits more valuable to the customer and drives higher engagement ”

Successful programmes make effective use of data across the organisation “Loyalty programmes help identify and profile customers, which enables brands to enrich their internal view with numerous external data sets,” says Dodge, adding that this deeper understanding can be used to identify customer segments or profiles that have the most spend potential and how to better position their brand and propositions to attract and grow these customers

Consulting firm McKinsey maintains there are four steps organisations need to take if they intend to create a winning loyalty programme The first is to invest in customer data analytics to drive

usage This requires leveraging the data businesses have on their existing customers and their spending habits to run targeted digital-marketing campaigns The second step is to visualise tangible benefits to encourage engagement

Customers need to be able to easily see their up-to-date progress towards earning rewards

The third step is to gamify the programme to improve the customer experience Lastly, companies need to broaden the reach of their loyalty programme by creating a community of customers with a shared passion for the brand This, says McKinsey, can create cycles of positive reinforcement, provide customers with a sense of belonging and increase the perceived authenticity of an organisation’s brand communication

Customers need a clear understanding of the value and what they need to do to receive these benefits in order to be motivated to join and engage with the programme

Gamification, which allows consumers to earn rewards through bonus points, challenges or multipliers, is one of the biggest emerging trends in loyalty programmes.

Clicks ClubCard is customer favourite for many good reasons

Clicks ClubCard was voted the most used loyalty programme in South Africa by the 2022 Truth and BrandMapp Loyalty Whitepaper This was the fourth time it received this accolade One of the oldest retail loyalty programmes in the country, ClubCard has more than 10-million active users Its success is rooted in its convenience, value and differentiated proposition

Dr Melanie van Rooy, head of marketing at Clicks Group, says ClubCard has played a critically important role in growing customer loyalty ClubCard members are more valuable and loyal to the business, with an average basket value which is 85% higher than a non-loyalty customer

She attributes ClubCard s sustained growth and longevity to the programme s simplicity, easily redeemable rewards and relevance

It s a very transparent programme and rewards are easy to earn compared with many other loyalty programmes

Members earn 2% cashback when they shop at Clicks and The Body Shop, and can increase this to 4% when they spend more than R1,000 in a two-month cycle Seniors Club members over the age of 60 earn 4% cashback on a Wednesday, while Baby Club members earn 4% cashback on most baby products at Clicks and Clicks Baby Stores

To remain relevant with its members, ClubCard focuses on evolving the programme based on consumer needs, while continuing to support Clicks’s core offering as a health and beauty retailer, reveals Van Rooy Recent innovations include the

launch of Flexicare, affordable private health insurance with partners Discovery and Auto & General, where members earn 10% cashback on their monthly premiums and ClubCard-only deals that offer even further instant savings to members

Van Rooy explains that brand partners are selected based on their strategic relevance and the value they add to ClubCard membership, such as bigger discounts and cashback, and the enhancement they can add to a member’s lifestyle “This includes our partnership with FNB eBucks, the largest bank loyalty programme in South Africa, as the exclusive health and beauty earn and spend partner, and our partnership with Engen, which provides members with a wide fuel network from which to earn cashback, with an opportunity to

Mature South Africa is no laggard in the market

South Africa boasts a very mature loyalty market, with a number of programmes that have been in existence for many years The oldest is Clicks ClubCard, which launched 27 years ago FNB’s eBucks is also more than two decades old “The longevity in the market is matched by very mature consumer behaviour and high usage of programmes,” says Amanda Cromhout, founder and CEO of loyalty consultancy Truth “In the US, consumers belong to an average of 14 or 15 loyalty or reward programmes, but their actual usage is likely to be lower than South Africa’s average of 9 2 programmes per person This indicates South Africa is doing something right ”

Far from being a laggard in the loyalty market, the country leads in certain areas, particularly in terms of how financial services programmes are structured, says Cromhout “Internationally, most retail banks only reward

customers for credit card usage, whereas in South Africa most of the big banks reward customers on their total banking behaviour ” Interestingly, while retail loyalty programmes dominate the most used category of the Truth & BrandMapp Loyalty Report, financial services programmes dominate the most loved programmes, with

loyalty Van Rooy says constrained household disposable income propelled Clicks to rethink its loyalty programme and how the brand interacts with customers More personalised offers have helped to create a differentiated and relevant customer experience, while helping cashstrapped consumers to stretch their available budget that much further

The 2022 Truth and BrandMapp Loyalty Whitepaper revealed that women tend to use loyalty programmes more than men and are more likely than men to use programmes tied to shopping and specific products, while men are more likely to use them for fuel, travel purchases and banking Van Rooy says ClubCard research indicates similar patterns More than 70% of ClubCard s members are women

earn double on fuel on selected Fridays ”

Members can also earn cashback at a host of other affinity partners, including Discovery Vitality, Sorbet, ARC Stores, Europcar, City Lodge Hotel Group, Execuspecs and Specsavers The 2022 Loyalty Whitepaper revealed cashback is South African’s favourite loyalty benefit across gender, age and income group ClubCard is arguably the most generous retail loyalty programme in South Africa In the past 12 months, it paid out more than R660m in cashback rewards Since its inception, it has paid out more than R5 5bn in cashback spend

In an increasingly competitive retail environment, meaningful and personal customer relationships have become more important to retain customer

Our research shows that women shop more frequently and have a higher ClubCard basket value than men Typically, women with a higher income do shop more frequently and spend more, while men are more invested in the Engen fuel benefit, with a customer base of 34% compared with 29% at Clicks ”

Loyalty programmes, says Van Rooy, have become expected by consumers in South Africa “The loyalty landscape has seen tremendous growth in the past five years, which has made innovation and differentiation key in remaining ahead of the pack and top of mind for consumers Differentiation, through hyper personalisation, is what sets a loyalty programme apart, as it reinforces stronger loyalty with improved engagement and keeps customers returning ”

Discovery Vitality and Standard Bank UCount taking the top spot, followed by FNB eBucks, Investec Rewards and Absa Rewards

“That financial services dominate the most-loved programmes category indicates the real value these programmes provide for their members,” says Cromhout Where local programmes still need to grow is in experience, she

reveals “Programmes need to focus on offering relevant experiences and providing regular communication with programme members Though one or two programmes are starting to improve this metric, the majority still need to up their game in terms of their ongoing relationships and engagement with members ”

‘It’ s a very transparent programme and rewards are easy to earn compared with many other loyalty programmes ’

DR MELANIE VAN ROOY Head of marketing at C icks Group

‘The longevity in the market is matched by very mature consumer behaviour and high usage of programmes ’

AMANDA CROMHOUT

Founder and CEO of oyalty consultancy Truth

did you know that joining ClubCard is absolutely FREE and takes less than 1 minute to sign up?

you can earn up to 4% cashback every time you use your ClubCard at Clicks, Clicks Baby and The Body Shop

earn even more cashback when you use your ClubCard at our partners such as:

new ClubCard members can now earn 10% cashback on their Flexicare health insurance premium

members also get instant savings on their favourite brands with ClubCard-only deals every month

4% cashback save e BIG ClubCard-only deals with

Better health starts with Dis-Chem’s Benefit Programme

No-one should miss out on the benefits of being healthy Even with limited funds, consumers should not have to compromise, and that’s where loyalty programmes can play a crucial role,” says Lynne Blignaut, head of loyalty and customer rewards at Dis-Chem, discussing the company’s Benefit Programme and the way it adds value to shoppers’ lives, no matter the life stage they are in

The Dis-Chem Benefit card enables millions of citizens to earn rewards at DisChem Pharmacy and Dis-Chem Baby City

The multi-partner programme has a base reward which is enhanced by instant discounts, free quarterly benefit magazines, personalised newsletters, double rewards days and automatic entry into competitions

In addition, members earn a percentage of their spend back in Benefit rewards on qualifying transactions These rewards are awarded at purchase in-store, online or via the DisChem DeliverD app, and are available for redemption at any stage

The programme takes a holistic approach to its members daily lives and extends the value offered through affiliated partners A member can earn points by swiping partnering bank cards at tills (Absa Rewards, Standard Bank UCount, Capitec Live Better, Sanlam Reality) for health, education and lifestyle products (School-Days, Discovery Vitality, Momentum Multiply, Planet Fitness, Legacy Lifestyle), and by filling up with fuel (TotalEnergies)

The Benefit Programme also recognises its members changing needs through their life stages To that end, it offers a

Baby Programme, which is tailor-made for expectant and new parents It provides exclusive vouchers and instant discounts on selected products, access to Well Baby Clinics and a free baby bag, among other perks A YOUth programme, for those aged 18 to 25, offers tailored discounts and double rewards on #DoubleitupMondays

The 60Plus focus group offers double points on a Wednesday

The biggest advantage of the Benefit Programme, reveals Blignaut, is that customers aren’t restricted to one offer per basket “Customers can earn multiple rewards on the same purchase DisChem’s Benefit Programme takes advantage of instant discounts on selected products, while also earning partner and base rewards In other words, customers are not earning one reward at the expense of another reward,” says Blignaut

For example, if a Benefit Programme member is also a member of Planet Fitness (an affiliated partner) and pays using their Standard Bank card (another

Up your game, reap rewards

Do loyalty programmes create loyalty?

It’s becoming harder than ever for companies to retain their customers

Loyalty and reward programmes aim to change that by improving customer lifetime value, reducing customer churn and maintaining high levels of customer acquisition and retention

The big question, however and one of the most frequently asked in the loyalty industry is whether loyalty programmes really do influence customers to change their behaviour

The Truth & BrandMapp Loyalty Report says the answer is an overwhelming “yes” and that consumer behaviour does change due to loyalty programme membership The report says a well-executed programme can generate between 4-6% incremental revenue for a business

According to the study, 84% of South Africans said loyalty programmes influence where they shop, 56% said they influence the products they buy, 53% said they influence where they buy fuel, 49% said they influence where they bank, 34% said they influence where they choose to eat and how they travel, and 23% said they influence where they buy insurance

It also noted that women were more influenced by loyalty programmes than men in terms of where they shop and the products they buy Men, on the other hand, are more influenced in terms of where they buy fuel, where they bank and how they travel The BrandMapp findings are confirmed by other surveys

A McKinsey report focused on the Australian market released earlier this year also found loyalty programmes change customer behaviour, with 60% of survey respondents saying that by virtue of a company’s loyalty programme, they were doing at least one of the following: increasing their purchasing frequency; choosing that business more often over that of competitors; were more willing to recommend the brand to others, and were more willing to pay a premium for loyalty points or enhanced loyalty status

The report said in an uncertain macro environment, consumer-facing businesses can overcome declining consumer sentiment by investing in their loyalty programmes Companies with high-performing offerings, it added, can expect “higher sales, greater bang for their customer acquisition bucks, with customers enrolled in these programmes spending more, churning less and demonstrating a greater willingness to recommend their favoured brands to others”

The McKinsey survey asked 1,400 consumers about their experiences interacting with loyalty programmes across a variety of industries The firm cautioned, however, that consumer optimism is falling, with the public spending less and showing a greater willingness to switch products, brands and channels in search of better value McKinsey said the decline in loyalty within the Australian market is apparent at every income level, but more so in the higher-income bracket

affiliate partner), they will be eligible for all the various qualifying rewards when shopping at any Dis-Chem Pharmacy and Dis-Chem Baby City This layered approach and ability to earn rewards from numerous programmes simultaneously is unique to Dis-Chem’s Benefit Programme, she adds

“Customers don’t want a rewards programme that is hard to understand and difficult to benefit from We’ve made every effort to remove all potential barriers to make it as easy as possible to earn and redeem rewards The programme is

structured in a way that ensures customers feel valued and respected ”

Every time a customer shops, a portion of all eligible purchases is donated to the Dis-Chem Foundation The 2022 Truth & BrandMapp Loyalty Whitepaper revealed that the ability to donate to charity was among the benefits of belonging to a loyalty and rewards programme Recognising this affinity for altruism, a percentage of eligible purchases is donated to the Dis-Chem Foundation, in addition to earning Benefit rewards

Established in 2006 in response to concerns around growing levels of poverty in South Africa, the Dis-Chem Foundation works closely with registered NGOs, NPOs and NPCs to support and improve the lives of struggling communities The main focus of the foundation is on health, nutrition and clean water In partnership with Future Life, Octodec and Nivea, the Dis-Chem Foundation will provide more than 2 4-million nutritious meals to children in need this year

The foundation also plants and assists in maintaining food gardens, and provides safe and clean running water in rural communities which, in turn, provides work and nutrition to those in need sustainably In addition to food security, Dis-Chem community clinics offer health services to the needy

The foundation s annual campaigns include Million Comforts, which provides sanitary products to teenage girls to ensure they don t miss school, and the Blanket campaign, which provides blankets to old-age homes, children s homes, animal shelters and other needy organisations

Questioning the cost of education?

School-Days is an innovative programme using loyalty methodology to raise funds for school, college or university education

When members spend at partner brands, they earn education-time points (ETPs), which can be donated or redeemed to pay for such fees

The programme, which boasts more than one-million members, more than 600,000 of whom are active, has partnered with Dis-Chem, Baby City, Standard Bank UCount, Jet, TFG, NetFlorist, The Harvest Table, Booking com, King Price and Car License

The big differentiator with SchoolDays ETPs are that they can only be redeemed to pay for education, not cash

or other benefits

The programme recently announced the launch of “Plan to Pay” , an innovative product which allows families to plan ahead for the cost of a child s education

How it works is that families purchase ETPs onceoff or via monthly instalments, with the investment used to pay for education later The ETPs are held and backed with cash investments in Standard Bank Participants earn bonus ETPs based on their behaviour and through partner campaigns They can also earn them by spending at partner brands When the time comes to redeem the ETPs, they are paid directly to the school, college or university of the member s choosing

We’ ve made every effort to remove all potential barriers to make it as easy as possible to earn and redeem rewards

‘Plan to Pay’ is an innovative product which allows families to plan ahead for the cost of a child’ s education

According to the study, 84% of South Africans said loyalty programmes influence where they shop

Sharing data can benefit both retailer and customer

Customer data has long been the lifeblood of many organisations With the rise of the connected consumer, retailers need to work harder to attract, retain and engage customers in order to get this precious data

Fionna Ronnie, head of customer capability at The Foschini Group (TFG), says that increasingly, customers are prepared to share their data if they consider the value exchange to be sufficient Customers join loyalty programmes understanding what is at play: you give me something that I deem is valuable in exchange for my data

With more than 29-million registered customers, TFG has been growing its loyalty programme, TFG Rewards, by harvesting and using transactional data Our Rewards objective is to create personalised customer experiences that influence consumer behaviour and reward our shoppers, says Ronnie Leveraging data, we really get to know our customers; we listen to them and we deliver on their needs Our approach is to provide the best customer outcomes by putting data and analytics at the heart of decisionmaking ”

Ronnie points out that good customers buy from you, but loyal ones keep coming back and encourage other shoppers to do the same

“Customer data is what gets you out of the starting block Harvesting that data enables you to sprint past your competitors, creating personalised offers and content in the right place at the right time,” she says

TFG’s loyalty programme is paying off for the retailer, increasing shopper frequency by more than 64%, average profit per transaction by more than 45% and the average transaction value or basket size by more than 47%, and strengthening customer loyalty by more than 61%

The programme is also delivering valuable insights on shopper behaviour, including what customers are buying, when they are buying and whether they are buying both sale and non-sale items, says Ronnie The loyalty insights journey is at play throughout the customer lifecycle, she explains The programme enables a constant

feedback loop, delivering deeper insights and optimisation across both physical and digital channels These insights are then put into action through intelligent decisioning, with segmentation and next-best offers crafted to entice and offer value to customers Campaigns are then modelled using this data and seamlessly executed to the customer’s channel of choice, creating an omnichannel experience ”

She is the first to concede, however, that loyalty management is a journey rather

New entrants to the rewards space

There have been a number of new entrants to the loyalty and rewards space in recent years One of the most notable and certainly the largest is Capitec’s Live Better programme

“Capitec’s Live Better programme has developed into a fully fledged loyalty and rewards programme that rewards Capitec clients through cashback, disrupting the financial services loyalty landscape,” says Gordon Dodge, a consultant at Eight20 The programme has 9 5-million members, of which five-million use Capitec’s savings tool, 1million save through the programme’s partnerships and 800,000 earn through banking rewards

More recently, Builders Warehouse announced the introduction of Builders+, a freeto-join loyalty and rewards programme that offers Builders

Warehouse customers regular deals, personalised offers, monthly competitions and birthday discounts

Astron Rewards launched in the latter half of 2022, rewarding customers with daily and monthly rewards for filling up at their participating forecourts Rewards start with fuel and convenience store vouchers, increasing to holidays and car servicing products

Sasol Rewards launched in April 2022, with customers now able to earn 15c a litre of fuel, which can be redeemed for fuel or selected items in convenience stores

African Bank launched its Audacious Rewards in September 2022, enabling its clients to earn points on card spend and spend at qualifying partners, which can then be redeemed as vouchers, products and experiences

than a race “Consumers’ wallets are under pressure, driven by the impact of load-shedding, along with increasing fuel, food and electricity prices Customers want better for less ” Brands that want to get more out of their loyalty data, she says, need to re-activate or re-engage dormant customers “It’s often as simple as a text or email, targeting a specific customer segment with a message saying something along the lines of: ‘We miss you, Vusiwe, and we haven’t seen you for a while Come and shop at any of our TFG brands this weekend only and redeem this R100 voucher on us ’”

Another option is for brands to unpack their customer demographics, because gender

differences should influence the type of content a brand sends to its customers, she says Research reveals that men are more interested in hospitality and entertainment messaging, while women are more interested in retailer messages The majority of customers both men and women want to receive shopping incentives and vouchers via SMS

In an age of artificial intelligence and chatbots, millennials and Gen Xers are more open to sharing data on new technologies and are more likely to feel comfortable than baby boomers This may be stating the obvious but this really is the fastest and easiest way to get more customer information and provide better customer support at the same time, says Ronnie Brands also need to consider digital options to drive shopping and engagement, advises Ronnie It s estimated that by the end of 2023, 82% of South Africans will have access to mobile phones Combine this with the fact that most customers say they would use cards more if they had access to a digital option, and it’s clear just how important digital is becoming Younger generations, in particular, are very interested in digital loyalty cards ”

Given that acquiring new customers costs five times more than retaining existing ones, loyalty programmes are a winning recipe, says Ronnie “Succeeding in the loyalty space requires using data to better understand what customers want in order to build successful customer relationships ”

Though Discovery Vitality has been around for a number of years, a new version of the programme was launched in March 2023 Discovery Active Vitality 3 0 brings together Active Rewards, Banking Rewards and Drive Rewards under one banner on the

Discovery Banking app The revamped programme, reveals Dodge, has a new personalised gameboard which rewards users the more they engage with the company’s products and services, and introduces new gamification mechanisms to engage members more regularly

Among the most notable entrances to the loyalty and rewards space is Capitec’ s Live Better programme

Customers join loyalty programmes understanding what is at play: you give me something that I deem is valuable, in exchange for my data