What is a Loyalty Programme?
A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program.
Top Loyalty Programmes In South Africa
Despite the Pick ‘n Pay Smart Shopper being perceived as offering the most value, the Clicks loyalty program is South Africans’ favorite loyalty scheme – although only marginally so.
Capitec and Shoprite are in second place, with Pick n Pay and Checkers in very close fourth and fifth positions.
How many loyalty programs are there in South Africa?
The South African loyalty market is mature and stable. South Africans are using 9.2 programmes on average, which has consistently increased year on year.
South Africans do change their behavior due to loyalty programs.
What are the five criteria for a successful loyalty program?
Simplicity.
Global.
Connected to CLV.
Relevant rewards.
Data
How successful are loyalty programs?
A study by McKinsey, for example, found that customers who are members of a loyalty program are 59% more likely to choose a brand over a competitor and 43% more likely to buy weekly.
In fact, the study found that customers who are members of a loyalty program are 62% more likely to spend more on the brand.