Loyalty programmes | The more simple and easy to use, the better
Pick n Pay, Shoprite and Clicks get it right with the youth with their host of partners and digital-first approach
By LYNETTE DICEY | Sunday Times GENNXT2022
For cash-constrained consumers, loyalty programmes are one way to make their money go a little further. All consumers — including the youth — are looking for similar things in a loyalty programme, says Steve Burnstone, CEO of Eighty20, a leading analytics company. “Consumers want to feel valued by brands, receive valued rewards that are worth the effort, with a great and easy-to-use experience, ” he says.
“When loyalty programmes make these elements available to younger consumers in a relevant manner, that’s when they become successful. Young customers might be more cost conscious and are willing to ‘play the game ’ to get value back, but typically they are particularly interested in simplicity, a clear brand positioning that resonates, convenience and digital first.”
The loyalty programmes that resonate the most with younger consumers are all from large national retailers and have broad market appeal.
The Coolest Loyalty Programme in this year ’s GenNext survey is Pick n Pay Smart Shopper, followed by Shoprite Xtra Savings and Clicks ClubCard.
“I would expect these programmes to all do well when looking at total usage across the youth market,” says Burnstone.
“Programmes that are simple, easy to use and straightforward in the benefits they provide, are increasingly important to younger generations. ”
Andrew Mills, Pick n Pay’s group executive of marketing, says the Pick n Pay app is a big drawcard given that the youth tend to be the most digitally-orientated customers, engaging with brands mainly on their mobiles.
“The app allows customers to see their Smart Shopper points balance or personalised discounts at the touch of a button on their mobile and virtually swipe their card — by scanning the QR code — so they don’t have to physically carry a card to get all the benefits from the programme,” he says.
Smart Shopper members also benefit from a host of partners, including discounted movie tickets or restaurant vouchers. Mills says Pick n Pay leverages influencer marketing to share the benefits of the Smart Shopper programme.
“We’ve worked hard to create a loyalty programme that is suited to everyone, with a variety of benefits including in-store savings, earned points as cashback, and partner rewards, depending on where the customer is in their life stage. In addition, several dedicated clubs offer further exclusive offerings and boost the customer’s points.”
Customers are able to earn points with both online and on-demand shopping.
“More than ever before, there is a need for instant reward and convenience, and Smart Shopper caters for this with an easy-to-use rewards programme,” Mills says.
Bank loyalty programmes tend to struggle to resonate with the youth market.
“Generally the services that banks provide don ’t tend to excite the younger market,” says Burnstone. FNB eBucks is the exception and is the only bank loyalty programme to make it into the top 10 this year, coming in fifth position. “eBucks has positioned itself well to the younger market,” he says.
“Its digital-first positioning is a key element that makes it more appealing to younger customers.”
Considering that more than 60% of customers are banked by the age of 18, he says banks need to up their game to better engage and retain the youth market.
To appeal to young people, Burnstone says, loyalty programmes need to remain true to the basics, while innovating so that they can differentiate themselves in an increasingly busy and crowded loyalty environment.
“Digital first, enabling convenience and gamification are just some of the elements that resonate well with younger consumers,” he says.
