Source: Sunday Times Second Edition – Lifestyle (Sunday Times (timeslive.co.za)

Some of the biggest trends in the loyalty space locally and internationally have focused on digital engagement, primarily through mobile integrations and applications, many of them incorporating gamification, hyper personalisation and partnerships. Gamification, which allows consumers to earn rewards through bonus points, challenges or multipliers, is one of the biggest emerging trends in loyalty programmes.

 

❝	“Gamification has become a powerful mechanism within the design of loyalty programmes due to its success in motivating customers to perform specific actions or change their behaviour,” explains Gordon Dodge, a consultant at Eighty20.

 

“It motivates customers to do tasks they might otherwise find too serious (save money), too much effort (go to gym), too expensive (upgrade a data plan) or too boring (update personal details).”

One of the benefits of a gamified experience is the ability to incorporate personalised offers of multipliers based on the consumer’s purchase history and known history.

A good example of this is Free Now, a European ride-hailing service which uses gamification on its mobile app. How it works is that users accumulate points whenever they use the service. These points can be saved and used to purchase discounted trips. Alternatively, users can “spin the wheel”, spending fewer points, with an opportunity to win bigger discounts.

Discover Active Vitality 3.0 is a local programme that is successfully using gamification, says Dodge. “Discovery Vitality has continued to introduce new and exciting ways for members to engage with their programme in ways that seem beneficial to members and the company. The programme is using gamification to maximise the motivation for members to actively engage with the programme and create opportunities for them to earn real rewards in return.”

Hyper personalisation, on the other hand, uses customer data and insights to provide rewards and offers focused on consumer preferences, past and current behaviours, says Dodge. It also allows for the introduction of methods of engagement that create strong intrinsic motivators that drive increased loyalty and engagement.

The Truth & BrandMapp Loyalty report maintains that personalisation is essential to build customer loyalty and that for communications to be effective, they need to be relevant.

 

❝	“Absence of personalisation leads to valueless noise; without personalisation, customers become disengaged and leave your brand,” says Dodge.

 

The report recommends loyalty programmes remain relevant on two levels: rewards and communication. This Is because customers don’t respond purely to loyalty programme incentives, but rather to the brand’s relevance to their needs.

Dodge believes Shoprite and Checkers’ Xtra Savings Rewards programme stand out in this regard. “XtraSavings launched in 2019 and has grown membership of the programme to more than 24-million members. Not only are members getting access to easily accessible deals with real savings, but regular personalised offers with additional value-added services being added to the programme regularly. They all add to the appeal of the programme for consumers.”

Strategic partnerships with other businesses that expand the offerings of the loyalty programme are another major trend that is gaining traction.

Other programmes that impress Dodge include Clicks ClubCard and Standard Bank Ucount. “Clicks ClubCard has consistently pushed new and innovative ways to engage with and reward customers. From expanding the opportunity to earn more cashback through other health, travel, fuel and beauty partners, to special benefits for parents and seniors. Clicks consistently takes a customer-first approach.”

Standard Bank Ucount impresses him for its wide-ranging earn categories. “Ucount, which celebrates its 10^th birthday this year, allows members to earn up to R10 per litre of fuel back at Caltex, as well as the ability to earn points on grocery spend at all major grocery retailers.

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