TO
SIGN UP
OR NOT
MORE LOYALTY PROGRAMMES? BABALWA SHOTA
ASKS WHAT TO LOOK OUT FOR BEFORE SIGNING UP
FOR YET ANOTHER SCHEME.
A
re you a tea drinker with a coffee-
shop rewards card? Did you go for a
facial two years ago and end up with
a colourful, unused beauty-spa card?
What about the car-wash card that
was stamped once, only because you
happened to be in the area? You are not alone.
A loyalty programme online survey conducted
in 2015 by Eighty20 found that there are more than
100 loyalty programmes in South Africa. It’s little
wonder that the average consumer has at least nine
loyalty cards stashed away.
The Loyalty Programme Member Engagement
Survey 2015 engaged 750 respondents and
explored programmes across a range of consumer
sectors, including grocery, health and beauty,
general retail, credit cards, banking, insurance,
medical aid, travel and hospitality, restaurants
and fast-food outlets. “On average, respondents
are members of nine programmes across the
spectrum, with 85% of respondents belonging to
five or more programmes,” the survey states. “All
but 1% of the respondents to the survey belong to
at least one programme.
Unsurprisingly, given their wide reach and
accessibility, the most popular programmes
identified by the survey are those offered by
retailers. Over 70% of respondents are members of
Pick n Pay’s Smart Shopper programme and 69%
are members of health and beauty retailer Clicks’
ClubCard, a pioneer in the South African loyalty
arena, launched in 1995.”
94 R E WA R D S & L O YA LT Y S A
The irony of the loyalty programme, of course, is
that not many people are loyal to it. Purses may be
bursting with plastic, but how often do these cards
actually get used? Why sign up if you never swipe?
Loyalty experts agree that customers need to
make a checklist before signing up for programmes.
Always check the fine print. Read through the
terms and conditions, and look for hidden charges
and data-security concerns. Examine whether
the rewards expire. Check if there are minimum
redemption requirements or fees for transferring
your rewards, which will reduce your spending
power. Does the membership fee cancel out the
value of the rewards you earn?
Bombarded with cold calls, text messages and
guerrilla ambushed in malls, consumers hardly have
the time to think about whether a programme is
worthwhile, but one should at least cover the basics.
Dr Thandu Tshume, head of Physical Wellness
in Client Engagement Solutions at MMI Holdings
Limited, says the first thing a potential customer
needs to be certain of is the name of the rewards/
loyalty programme. “After that, ask about the
benefits of being on the programme, such as what
you need to do to achieve/unlock the benefits
available,” advises Dr Tshume. “Know the cost of the
programme and have an insight into the various
partners linked to it and what special deals they
offer to members.”
For some of us, however, the jargon gets
overwhelming and the sheer scale of what a
programme offers becomes a jumble of words.
“FREE REWARDS
LINKED TO ONE’S
LIFESTYLE WITHIN KEY
CATEGORIES SUCH AS
GROCERIES, PETROL,
ENTERTAINMENT,
TRAVEL, COSMETICS
AND CLOTHING HAVE
PROVED TO BE THE
MOST POPULAR.”
FNB eBucks’ Bavani Roman says a programme
should fit your everyday lifestyle and reward you for
what you do anyway, like buying fuel and groceries.
“In today’s busy lifestyle, it’s all about convenience,”
she says. “And just because you’re a member of one
rewards programme doesn’t mean that you can’t
benefit from others at the same time. For example,
when you pay for something at Dis-Chem Pharmacy
using a qualifying FNB or RMB Private Bank card,
you’ll earn eBucks on your spend. Then, if you also
swipe your eBucks card, you’ll earn additional points
because Dis-Chem Pharmacy is an eBucks Rewards
partner. Finally, swipe your Dis-Chem Benefits card
to earn points on that as well. That means triple
rewards back in your pocket.”
FNB seems to be doing something right because,
according to the survey, more than 70% of members
say they actively use eBucks, and over 60% say it
offers the most value.
“Lifestyle”, “convenience” and “partnerships”
seem to be the buzzwords in the loyalty
programme industry.