The use of loyalty programmes in South Africa, which includes shopper savings cards, has increased significantly from 67% in 2015 to 76% in 2023/2024.
This is across different genders and income levels.
According to the latest “South African Loyalty Landscape Whitepaper” by loyalty consultancy Truth & BrandMapp, both men and women are participating in loyalty programmes equally for the first time.
The paper identifies 55% of economically-active individuals under 25 using these programmes, compared to 72% of less-wealthy individuals in that age group, writes BusinessLive.
What are the top shopper loyalty programmes?
The report identifies Checkers Xtra Savings as the most popular loyalty program among wealthier consumers, closely followed by the Clicks ClubCard.
For mass-market consumers, the most preferred programme is Shoprite Xtra Savings.
The second-most popular loyalty programmes amongst mass-market consumers, though not retailer related, is Capitec Live Better.
The most popular shopper savings card rewards
According to the research, cashback rewards remain the top choice for economically-active consumers, while mass-market consumers also value airtime or data rewards.
Also, while some consumers prefer to accumulate rewards over time, others seek instant gratification.
However, 47% of the latter prefer a combination of both approaches. The report says this demonstrates this group of consumers’ sophisticated understanding and expectations of loyalty programmes.
What else does the research reveal about South African shoppers?
The report shows that wealthier consumers tend to use almost double the number of loyalty programmes compared to mass-market consumers.
The primary motivations for economically-active consumers to participate in loyalty programmes include instant rewards (45%), accumulating points for significant rewards (41%), and earning more rewards by spending more (35%).
Conversely, mass-market consumers are mainly motivated by the desire to earn more rewards (61%), accumulate points for significant rewards (48%), and prevent points from expiring (33%).
Whitepaper author Amanda Cromhout notes: “If there is one way to upset any loyalty member it is to let their points expire before they wish to use them … programme managers need to understand who their consumers are before introducing an expiry rule which could seriously upset their most loyal customers.”
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