How many rewards programmes does the average South African belong to?

How many rewards programmes does the average South African belong to?

The NIQ (N NielsenIQ) Consumer Outlook report looks at the financial state of South African consumers, and their use of rewards programmes.

It also looks at how these consumers have altered their shopping behaviour to save more at FMCG retailers, to help manage their spend.

The latest report has revealed that 59% of South Africans shop where they can use loyalty and rewards programmes.

Rewards programmes play a significant role in getting consumers through tough times, particularly with rising inflation amidst a cost-of-living crisis.

Other findings on loyalty and rewards

According to the report, on average, a middle-class South African adult belongs to nine loyalty and rewards programmes, writes Bizcommunity.

FMCG retailers hold significant influence over consumer shopping and spending habits by offering instant rewards or savings.

This has the effect of creating a strong personal and emotional connection between consumers and the brand, and this gives stores a competitive advantage.

However, it has been found that poorly-structured programmes with expiring loyalty points can ruin this connection.

Attracting customers with coupons

Coupons offer a viable alternative, helping consumers to save money upfront and extend their budgets. Coupons offer immediate savings on everyday items, reducing grocery expenses and giving consumers more financial flexibility.

The report notes that in South Africa, retailers have a big opportunity to drive sales by introducing coupons and attracting more customers.

This mutually-beneficial approach allows shoppers to save while retailers increase revenue, and build customer loyalty in a fiercely competitive market.

The top three shopper savings cards in South Africa

When it comes to loyalty programmes, three shopper savings cards stand out above the rest.

The South African reported in March that the use of loyalty programmes in South Africa, which includes shopper savings cards, has increased from 67% in 2015 to 76% in 2023/2024.

This is across different genders and income levels.

According to the latest “South African Loyalty Landscape Whitepaper”, the report identified Checkers Xtra Savings as the most popular loyalty programme among wealthier consumers.

This is closely followed by the Clicks ClubCard. For mass-market consumers, the most preferred programme is Shoprite Xtra Savings.