Clicks ClubCard the most used loyalty programme in SA

Clicks ClubCard regained its place as the most used loyalty programme in SA for the fourth time in 2022, pipping Pick n Pay Smart Shopper to the post, according to the recently released Truth & BrandMapp SA Loyalty Landscape Whitepaper. Checkers Xtra Savings took third place and Dis-Chem Benefit fourth place.

The whitepaper, now in its seventh edition, outlines how South African consumers use loyalty programmes, what their preferences and motivations are towards them and which benefits they most enjoy. It is based on a survey of 42,000 respondents.

The whitepaper says loyalty programmes are influencing where people shop, what products they buy and where they bank. It reveals that 74% of economically active South Africans are using loyalty programmes. They and are on average using 9.2 programmes per person. Women use marginally more loyalty programmes than men. However, usage among customers under the age of 25 is lower than that among older customers.

Customers tend to fall into three categories as far as motivation is concerned: those who want to be instantly rewarded, those who want to build up points for bigger rewards, and a combination of the two. The report found that customers who want both are using loyalty programmes more than they did last year and are more influenced by loyalty programmes to change their behaviour – but they’re also the most demanding customers, wanting all the loyalty benefits on offer.

Getting cash back remains the favourite loyalty benefit across gender, age and income group. A third of respondents say they hate it when points expire before they can use them. The whitepaper recommends that points should not expire if loyalty members are still active. “The customer lifetime value of an active loyalty member who is engaging with your brand via the loyalty programme outweighs the points liability associated with their programme participation,” says Amanda Cromhout, the author of the whitepaper and the founder and CEO of Truth, an international loyalty consultancy.

Retail dominates the top 10 most used programmes. FNB eBucks is the exception; it is the only non-retail loyalty brand in the top 10, at number 8.

This year’s survey investigated the correlation between grocery retail loyalty programmes and delivery app usage. It found that 61% of Checkers Sixty60 app users are also using Xtra Savings, 57% of customers using Woolies Dash are using WRewards and 60% of Pick n Pay Asap users are using Smart Shopper.

FNB eBucks is the most used loyalty programme in the financial services sector, followed by Capitec’s Live Better loyalty programme. This is a remarkable achievement, given that the Capitec programme is a relative newcomer to the loyalty market. The whitepaper says the simplicity of the Capitec Live Better programme appeals enormously to the less wealthy customer.

However, it is Discovery Vitality and Standard Bank UCount that South African consumers say they cannot live without.

One of the key insights revealed by the whitepaper is the importance of relevant and personalised offers to build loyalty.

Clicks head of marketing Melanie van Rooy says meaningful and personal customer relationships have become vital in an increasingly competitive retail environment. “Personalisation allows Clicks ClubCard to create a differentiated and relevant customer experience. What has become apparent is that those customers who interact with Clicks across the entire omnichannel are our most valuable customers. In fact, ClubCard members account for 80,1% of sales.”

Van Rooy attributes the sustained growth and longevity of ClubCard to the programme’s simplicity, convenience, easily redeemable rewards and relevance. “The programme is highly transparent and rewards are easy to earn [than in] most other loyalty programmes.”

The big take-out: Getting cash back remains the favourite loyalty programme benefit across gender, age and income group.