Read the Financialmail article here: Partnerships between banks and petrol stations drive loyalty

Loyalty programmes have grown in both number and adoption in South Africa, becoming a vital part of consumer engagement across a variety of industries. With this increased competition in the market, strategic partnerships are emerging as a crucial asset. Loyalty partnerships offer brands a dynamic tool to increase touchpoints with consumers, influence consumer behaviours and in turn provide more meaningful rewards.

As one of the first cross-industry partnerships to develop in South Africa, the link between banking loyalty programmes and fuel retailers has grown significantly since 2010. This trend mirrors a broader narrative wherein cross-industry partnerships are increasingly integral to customer loyalty strategies.

❝ “Fuel is a largely commoditised and price regulated industry, where location, service and convenience are some of the only points of differentiation.  Given that fuel and transport represent an increasing share of the average South African’s expenditure, these partnerships between banks and fuel retailers have become ever more relevant to everyday consumers”

“Fuel is a largely commoditised and price regulated industry, where location, service and convenience are some of the only points of differentiation.  Given that fuel and transport represent an increasing share of the average South African’s expenditure, these partnerships between banks and fuel retailers have become ever more relevant to everyday consumers,” says Gordon Dodge, Consultant at Eighty20.

Recent insights from BrandMapp, analysed by Eighty20, South Africa’s leading consumer insights and research business, provides valuable perspectives on consumer preferences and brand loyalty among the ‘economically active’ demographic. The analysis highlights the impact of several banking fuel partnerships, underscoring their significant sway over consumers’ decisions on where to refuel their vehicles.

• Standard Bank UCount & Astron/Caltex: With a current headline of R10 back per litre, depending on a member’s tier, this partnership leads the way with an 83% increase in the proportion of customers spending at Astron/Caltex compared to their competitors.
• FNB eBucks & Engen: Offering members up to R8 back per litre, depending on tier and products, the eBucks and Engen partnership has grown significantly over the years and has resulted in a 33% increase in behaviour change.
• ABSA & Sasol: With members earning up to 30% back on fuel spend, based on their tier, ABSA’s partnership with Sasol indicates a strong brand awareness with a 22% increase compared to their highest competitor.

Overall, the analysis indicates that loyalty programmes wield considerable influence over the consumers’ choice of petrol stations, ranking closely behind its location. This insight is critical for brands, as it underscores the importance of forging strategic partnerships that align with consumers’ lifestyles and preferences.

“Banks that have embraced this trend are seeing their loyalty programmes become a significant differentiator in the market. By strategically leveraging rewards, these programmes are able to reinforce loyalty not only to the bank but also to the fuel retailer. This creates a win-win scenario where banks retain customer loyalty, fuel retailers enjoy a diverse and highly engaged customer base, and consumers benefit from enhanced relatable rewards,” adds Dodge.

In essence, these cross-industry partnerships represent a dynamic and ever-evolving terrain of loyalty marketing. They reflect a deeper understanding of consumer needs and an appreciation that loyalty extends beyond mere transactions, but rather the overall experience and value proposition. For businesses, the implications are clear: partnerships that create added value for consumers are key to differentiation and customer retention. This example highlights the importance of brand alliances, deliver outstanding value and promoting lasting consumer loyalty.

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