South Africans now expect rewards, as loyalty programmes grow even more popular | Fin24

Truth, a boutique consultancy specialising in loyalty programmes, says South Africans are extra invested in loyalty programmes.

  • New analysis reveals that South Africans count on loyalty programmes greater than ever earlier than.
  • Truth – a boutique consultancy specialising in loyalty programmes – says its newest analysis dispels predictions that these programmes are dying.
  • Old Mutual says its loyalty programme has helped it defend its turf and purchase new clients.

The reputation of loyalty programmes in South Africa reveals not indicators of waning, with new analysis displaying that clients are, in truth, anticipating rewards.

This is in accordance with Truth – a boutique consultancy specialising in loyalty programmes – which is presently finalising its 2021 report into the business. 

The agency will launch its annual white paper round September. But throughout a webinar dialogue on Old Mutual’s loyalty programme on Wednesday, Truth founder and CEO Amanda Cromhout stated the preliminary reconciling of knowledge confirmed that South Africans count on their service suppliers to reward them.

“We’re seeing that South Africans are even more invested in loyalty programmes. There’s certainly not a decline. South Africans love loyalty programmes. They’re part of the expectation,” she stated.

The head of Old Mutual Rewards, Brett Cameron, stated loyalty rewards have grow to be a “no-brainer”, particularly within the monetary providers business. Old Mutual got here late to the celebration on this entrance because it solely launched Old Mutual Rewards in 2018. While some enterprise models in its steady ran some type of rewards schemes for his or her clients, there was no group-wide loyalty programme as much as that time.

Cameron stated the insurer was dropping floor to rivals, and it recognised that it wanted to do one thing. So, loyalty rewards needed to be a part of its providing.

“There was also a customer drive. There was an expectation from customers to have an offering like this, partly because of what the market has exposed people of South Africa to,” he stated.

He stated launching a programme that cuts throughout all Old Mutual’s buyer base has been the most important success issue this time round.  

Cameron stated South Africans have grow to be so used to getting one thing in return for sticking with their merchandise and repair suppliers. The programme has additionally grow to be a little bit of an acquisition software for Old Mutual, stated Cameron.

As the expertise matures, Cameron stated it is changing into extra reasonably priced for firms to construct and run these reward programmes. So, whereas firms should hold their accountants and executives completely happy, loyalty programmes can put up a sound monetary enterprise case. They’ve grow to be an extension of constructing model energy.

He stated it was evident that many monetary providers firms have been profitable with loyalty programmes.

“Twenty [or] 15 years ago when all the competitors were starting out, there [were] a lot of questions whether it was going to pan out successfully,” he stated.

“Every business in some way should have a loyalty programme, and it can definitely add value in many, many ways,” he stated.

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