South Africans love a good bargain. And who can blame us? With the price of living on a relentless incline, we can’t help being eager to save wherever we can. Open a wallet at random in this country, you’re likely to discover at least one loyalty programme card. But, which of those loyalty cards offer the most return on investment?
The BrandMapp 2016 survey results indicate a massive increase in the importance of loyalty programmes to some respondents in lower income brackets. The volatile economic climate, a weak performing rand, and political instability will do that. South African consumers, in general, are feeling the pinch. Loyalty programmes have become invaluable for their discounts and loyalty savings, as well as to rack up points for a rainy day.
The Most Used Loyalty Programmes Of 2016
In November last year, Truth – a consultancy that specialises in the development of loyalty programmes – in partnership with WhyFive, released the white paper, Consumer Loyalty Behaviour in South Africa.
Unsurprisingly, the report confirms that loyalty programme usage continues to increase year-on-year. Growth in usage went up, overall, by 6% from 2015 to 2016, and by 5 percentile points for men alone.
According to 27 446 respondents…
South Africans Love…
1 Pick ‘n Pay Smart Shopper (71%)
2 Clicks ClubCard (62%)
3 Woolworths WRewards (50%)
4 Edgars Thank U (46%)
5 Dis-Chem Benefits (42%)
6 FNB eBucks (41%)
7 Spur Family Card (33%)
8 Discovery Vitality (32%)
9 ABSA Rewards (16%)
10 SAA Voyager (15%)
11 Exclusive Books Fanatics (15%)
12 Avios (14%)
13 Standard Bank UCount (14%)
14 Jet Thank U (11%)
15 MTN 1-4-1 (11%)
16 Nedbank Greenbacks (10%)
17 TFG Rewards & More (10%)
Pick ‘n Pay Smart Shopper retains the number one spot with, not only Cash Rewards but, a range of partner deals to suit. Grocery and clothing retail programmes still hold rank in the market, with financial services and banking loyalty programmes not far behind.
A Reward By Any Other Incentive…
In terms of which benefits are most enjoyed, 63% of the BrandMapp 2016 survey respondents prefer cash back incentives to any other kind – including accumulating points and VIP treatment.
But, consumers also prefer rewards that are frequent – even if they’re small – to larger rewards that take time to achieve. According to The Sorbet Group’s Marketing Manager, Jade Kirkel, “Customers also like rewards and programmes with choice and flexibility”.
Some Points You’ve Missed
Usage in the younger segment is growing at double the average growth across all ages.
In 2015, 47% of respondents under the age of 25 did not use loyalty programmes at all. In 2016, the number of respondents under the age of 25 using loyalty programmes grew by 13%. 60% of all consumers in this age group used loyalty programmes last year. This is also the segment who are at least 5% more likely to engage on social media than older groups.
Alex Emmerich, head of Loyalty and CRM at TFG (The Foschini Group), says loyalty is no longer a differentiator, and that customers expect you to have a loyalty programme.
“Personalisation and customisation are becoming even more important than before.”
Truth have also derived that, “it has become apparent that businesses need to shift beyond the traditional loyalty programme structures of points and discounts.”
Africa’s fastest growing social communications platform, WeChat, officially launched their WeChat Wallet in 2015. The feature is used to transact seamlessly and securely through the app. If, like us, you were like, “but I have SnapScan,” there may be some benefits you’ve been missing out on. Like some crazy WeChat Wallet cash back promotions.
Just for using the WeChat Wallet facility to transact at certain outlets, you can get up to50% cash back. One of the app’s latest promotions is the McDonald’s Crazy Cash Promotion, where you got 50% cash back on any meal bought during January and February. Another promotion allows you to get 50% off the latest tech deals from Stuff Magazine by using your WeChat Wallet to scan the QR code next to the product you would like to purchase.
Frequent, immediate, and 50% cash back. What more could you want from a loyalty programme?