Rédaction Africa Links 24 with Georgina Crouth
Published on 2024-03-21 14:07:29
The latest Truth & BrandMapp Loyalty White Paper reveals that loyalty program usage among consumers has increased to 76%, up by 3% from the previous year. While there have been minimal changes in loyalty program usage across income brackets and genders, younger consumers below the age of 25 show lower participation. However, this is often linked to economic status, as 72% of mass market youth actively use loyalty programs, indicating that lower-income consumers rely more heavily on such programs regardless of age.
This year, there has been a significant 30% increase in consumer reliance on loyalty programs. Wealthier consumers, on average, utilize 9.4 loyalty programs, whereas mass-market consumers engage with approximately 4.8 programs each.
The whitepaper draws primarily from the BrandMapp-WhyFive Insights study, supplemented by insights from leading loyalty consultancy Truth and enriched with data from the MoyaApp super app. This comprehensive approach ensures a representation of consumer responses from high earners to Sassa grant recipients.
Celebrating its tenth year, the BrandMapp consumer landscape study surveys 35,000 “economically active” respondents, reflecting the needs, perceptions, and behavior of around 13 million South Africans residing in households with a monthly income of at least R10,000. The study further segments this base into the “middle market” comprising 10 million consumers earning between R10,000-R40,000 monthly, and the “top end” consisting of three million individuals earning above R40,000 per month.
In addition to the consumer landscape study, data from MoyaApp is included for the second year, offering insights into a wide range of consumers. MoyaApp caters to 11,500 “mass market” consumers with a monthly household income of R10,000 or less, including a diverse mix of employment statuses.
The report highlights the most popular loyalty programs, such as Absa Rewards, Capitec Live Better, Checkers Xtra Savings, Clicks ClubCard, Discovery Vitality, FNB eBucks, Old Mutual Rewards, Pick n Pay Smart Shopper, Shell V+, Shoprite Xtra Savings, and Standard Bank UCount.
Shoprite Group emerges as a standout winner this year among economically active and mass-market consumers. Checkers Xtra Savings leads the economically active segment with 78% usage, closely followed by Clicks ClubCard. Among mass-market consumers, Shoprite Xtra Savings is the preferred loyalty program.
Cashback is the top benefit across all consumers, while the mass market values airtime and/or data. Preferences differ among consumers based on income level, with wealthier consumers favoring card swiping and lower-income consumers opting to provide their cellphone number.
Discovery Vitality is the preferred choice for many wealthier consumers, whereas Capitec Live Better is the top pick for the mass market. FNB eBucks stands out as the only non-retail loyalty program in the top 10.
Fuel sector loyalty programs are gaining traction, with Engen being a prominent player through partnerships with FNB eBucks and Clicks ClubCard. Other notable programs in the fuel sector include Shell V+, Sasol Rewards, Total Energies Club, and Astron Energy Rewards.
Despite the popularity of loyalty programs, some consumers refrain from using them due to concerns about earning rewards, time constraints, and data security. Loyalty programs have a significant impact on consumer behavior, influencing where they shop, refuel, and bank.
In conclusion, loyalty programs continue to play a vital role in consumer engagement and behavior, with insights from the latest white paper shedding light on evolving trends and preferences in the market.
Read the original article on Daily Maverick
