Why a Loyalty Program?

Nielsen’s latest Global Retail Loyalty Survey 2022 (based on respondents with online access in 63 countries). 

• SA had the highest number of respondents i.e. 84% stating that that they were currently members of a loyalty programme (Only 66% of global respondents were members of one or more loyalty programmes). 

• The high membership rate in South Africa speaks to the relatively long history of loyalty programs and high penetration in the market.

• 62% of South African respondents belong to between 2 and 5 schemes

• 32% enter information or log into their account on a retailer website and 28% use the retailer’s app.

• Monetary rewards are more highly valued in South Africa – nearly 7 in 10 South African loyalty-program participants say rebates or cash back (69%) or product discounts (67%) are among their top three rewards - response rates that are 24 and 16 percentage points above the global average, respectively. Free products also score highly amongst South African respondents (43%). 

• Respondents from South Africa who stated that loyalty programmes are more likely to make them continue to do business with a company, 67% said that all things being equal, they will buy from a retailer with a loyalty programme over one without.

Nielsen Head of Emerging Markets Thought Leadership Ailsa Wingfield says:

“This is yet another clear indication that an omni-channel experience is the new reality for consumers. Retailers can’t think of the online browsing and in-store buying experience as disparate activities. Loyalty programs and the engagement with members should occur holistically across brick-and-mortar and digital channels during the entire path to purchase, not just at check out. Big data (in conjunction with technology) and various relationships and collaborations that allow retailers to offer individualized deals based on a customer’s buying habits and purchase history will enable loyalty programs that are highly tailored to individual shoppers.”