Do customer rewards/loyalty programmes actually work?

by Terena Chetty. Do “rewards” programmes really get the job done? From a consumer perspective, their recognition is undeniable. In accordance to The Truth & BrandMapp 2021 Whitepaper, 74% of economically energetic South Africans are working with loyalty programmes. This is an enhance of 7% from the 2015 determine of 67% loyalty utilization, implying that buyers do, in reality, find value in these programmes.

Model benefits or loyalty programmes are aimed at attracting and retaining prospects by supplying some sort of profit to buyers in exchange for using their items and providers, significantly on a regular basis. Loyalty programmes are prevalent throughout most industries, together with banking, insurance policies, retail and entertainment, offering a large assortment of advantage constructions from immediate income-again and reductions, to factors that can be utilised for a variety of products and products and services.

Most well-known in the pack

Foremost the charge are the Decide on n Pay out Intelligent Shopper and Clicks ClubCard programmes, with Choose n Pay’s supplying using the major spot by just 1% over Clicks. The Dis-chem Benefit presenting takes the 3rd place, with newcomer Checkers Xtra Savings swooping in to protected 4th put. Amazing. The top rated 10 areas are dominated by retail, with the only exception remaining FNB eBucks in the number 8 place total, and the top rated spot in the financial products and services classification. When requested which solitary loyalty programme they would retain if they experienced to choose just just one all round, surveyed respondents picked FNB eBucks as their major selection.

As can be envisioned, the onset of the COVID-19 pandemic resulted in better use of loyalty programmes as the inhabitants in normal professional amplified economic strain. Individuals welcomed the discounts, rebates and other money advantages offered by a lot of benefits programmes. What is interesting while, is that 2021 stats showed additional gender stability than earlier use information. Historically, there was a far wider gap amongst male and woman usage, especially when it arrives to retail loyalty programmes. Nonetheless, 2021 shows a lot more gender equity in this regard, quite possibly currently being driven by pandemic-centered money constrains as very well.

Playing your cards ideal

Do loyalty programmes function for stores and makes? The response is a resounding certainly. Investigate displays that loyalty programmes have a definite impact on client conduct. In fact, 64% of consumers say that it influences where by they shop and 40% say it influences the merchandise they buy.

For stores to get it proper, it is crucial to realize what consumers want the most out of a loyalty programme. Understandably, “cash-back” is a top incentive for rewards programme usage, with the upcoming best matter remaining reductions. Women of all ages are likely to emphasis a lot more on retail or searching-primarily based advantages, with males inserting a lot more importance on standing-based mostly gains, these as airport lounge entry  or “higher-tier-level” status, than their woman counterparts. Gentlemen are also drawn to fuel and banking added benefits to a larger extent than girls.

In conditions of methodology, particularly in the retail sphere, swiping a card is the mind-boggling preferred approach to assert gains at a fork out-stage, with 76% of folks preferring this option. It is followed at a distant 2nd by scanning an app, which will come in at 27% of purchaser votes.

Melissa Hanley, head of loyalty & strategic partnerships at Decide on n Spend, succinctly expresses the value of comprehension buyers and the worth it has resulted in for their brand name: “Historically, Intelligent Shopper has witnessed a sales participation of approximately 63% ,and we amplified this to 75% during our previous fiscal. Smart Shopper had its most thriving 12 months ever past 12 months and we imagine we attained this by offering our users what they really desired, when they necessary it. The intentional approach of Smart Price ranges drove enormous desire among our customers and we look at this a important get on our worth proposition. In addition, we keep on to devote in crucial partnerships which supply even further options for Good Buyers to receive details and improve their cashback even additional – once more assisting them conserve even a lot more money and realise the price of the Clever Shopper provide.”

As inflation and other money burdens continue to increase, it will be attention-grabbing to see regardless of whether models evolve their loyalty programmes in approaches that reward consumers to a greater extent. Based mostly on the stats, it is harmless to say that this will raise model loyalty and purchasing behaviour in a measurable and tangible way.



 Major picture credit score:




Terena Chetty is head of tactic at 1Africa Consulting, and has in depth practical experience in general public relations (PR), built-in manufacturer approach and shopper communications. She functions closely with equally pan-African and international brand names, and holds a BA Diploma in Communication Science (cum laude).



– Receive the Retailing Africa newsletter just about every 7 days • Subscribe here.


Leave a Reply