By Kelly Goldsworthy, Head of Live Better Rewards at Capitec
Loyalty programmes are no longer a “nice-to-have” in South Africa. They've become an essential part of how many navigate their financial realities. The 2024/5 Truth & BrandMapp Loyalty Whitepaper illustrates this, revealing that 82% of South Africans actively use loyalty programmes. Perhaps more tellingly, 26% of respondents rely on these programmes to weather current financial pressures. In an economic climate marked by rising living costs, this reliance underscores a fundamental shift – rewards are evolving from a simple marketing tool into a crucial value-exchange mechanism.
However, for loyalty programmes to truly serve this heightened purpose, they too must evolve. The era of generic, one-size-fits-all rewards is rapidly fading. Delivering genuine, everyday value to millions of diverse South Africans requires a deeper, more nuanced understanding of individual needs and behaviours. This is where the transformative power of hyper-personalisation comes into play.
The rising cost of essentials, from groceries to fuel, impacts South Africans’ daily decisions and long-term financial well-being. Loyalty programmes are increasingly bridging this gap to save a few rands and as a strategic tool to help South Africans manage household budgets. For example, Capitec hears incredible stories of how Live Better cash back covers a last-minute taxi fare, contributes to school fees, or allows for a small, well-deserved treat. For many, the popular “Live Better Day” on the 10th of every month has become synonymous with a “second payday”, offering a welcome financial buffer. The resonance of this particular benefit is evident in Capitec's internal data, which shows 1.1 million clients engaging with the programme on Live Better Day alone.
This reality demands that loyalty programmes deliver tangible, accessible value. The traditional model of complex tiering systems, points that are difficult to redeem, or rewards that don't align with everyday needs, doesn't cut it anymore. Simplicity, accessibility, and transparency must be the guiding principles. South Africans should see and feel the benefit without navigating a labyrinth of rules. This could be through instant rewards, meaningful monthly cash back, or practical savings tools easily integrated into their financial lives.
If a university student in Polokwane receives an instant-data voucher after two consecutive months of topping up with the same mobile network, that feels intuitive. Hyper-personalisation, powered by data-driven insights, is the key to unlocking this relevance. For instance, Capitec ethically and transparently leverages transactional data and client insights to know what they buy and understand their broader lifestyle, financial journey, and unique aspirations.
This understanding allows a hyper-personalised rewards programme like Live Better to offer baby products intelligently directed to new parents, or fuel rewards for regular commuters. It ensures that the offers clients see are genuinely useful, resonating with their specific circumstances rather than feeling like an irrelevant marketing blast.
Capitec's internal data shows the power of this approach. The Live Better programme has seen 800 000 unique client engagements daily, with 7 million unique clients visiting monthly, and 3.5 million of those visiting more than four times a month.
A cornerstone of a truly effective, personalised rewards programme is a broad and strategically curated partner ecosystem. Introducing a wider array of relevant offers across diverse categories ensures more clients can find value tailored to their everyday spending habits.
For example, leveraging client data has allowed Live Better’s redesigned programme to add everyday value in South Africans' lives by integrating rewards across:
This ecosystem approach also holds immense potential for supporting the broader South African economy, particularly Small and Medium Enterprises (SMEs). Future developments in the loyalty space could enable SMEs to offer their own rewards programmes to a vast, engaged client base, driving growth for South Africans and local businesses.
In the current South African economic climate, rewards programmes have a profound responsibility and an incredible opportunity. They must be more than just marketing add-ons; they should be robust, value-driven platforms that help people live better.
The path forward lies in a relentless focus on the client, driven by the intelligent application of data to deliver hyper-personalised experiences. For Capitec, the vision is to create a rewards ecosystem that benefits South Africans by making their money go further and helps grow the economy by connecting them with businesses of all sizes. When a rewards programme truly understands and responds to the unique needs of everyone, it ceases to be just a programme; it becomes an indispensable part of their financial life, and a genuine force for positive economic impact.
