Giving shoppers exactly what they need

As consumer expectations continue to shift, loyalty programmes are under pressure to adapt to stay relevant.

As Lukasz Dubiel, loyalty solutions consulting director at Comarch, explains: “Loyalty is not a stone; it’s like water — always seeking new ways to spread, grow and dominate.”

He says loyalty programmes should be continuously looking for new opportunities and features to offer customers — because competitors are doing the same thing.

Fionna Ronnie, head of TFG customer and loyalty, says TFG Rewards continues to refine its approach by leveraging technology and customer centric strategies to connect with a diverse audience — from Gen Z to Gen X and spanning high-end shoppers to price-conscious consumers who shop across the group’s extensive brand portfolio including Foschini, Sportscene, Jet, @home, American Swiss and Markham.

“The global loyalty landscape is evolving rapidly, with leading retailers implementing cutting-edge innovations to enhance customer engagement, retention and brand loyalty,” says Ronnie.

Comarch’s Customer Loyalty Predictions 2025 and Beyond report confirms this, revealing that loyalty programmes are not longer just transactional, but are now offering businesses an opportunity to forge deeper emotional relationships with customers.

“Customers increasingly seek brands that understand them and genuinely care about their needs and preferences. In an environment where consumers have endless options, demonstrating empathy and investing in long-term relationships with customers defines sustained business success,” says the report.

Globally, gamification is on the rise as companies seek to make their loyalty programmes more rewarding for consumers and encourage repeat engagement. To create a more interactive experience, TFG Rewards has incorporated gamification into its loyalty programme. It offers shopping, third-party lifestyle vouchers and competition entries in exchange for non-transactional behaviours to help drive greater programme understanding, engagement and shopper frequency.

“Following a successful trial, gamification is now a core feature of the programme, providing members with more ways to engage beyond traditional spending,” says Ronnie.

Brands like Starbucks have successfully leveraged gamification in their loyalty programme. Starbucks Rewards, for instance, offers a tiered system where members earn “stars” for purchases, unlocking exclusive perks and free products.

Personalisation is another buzzword in the loyalty space with consumers increasingly demanding personalised offers. Recognising the importance of delivering relevant and timely offers, TFG Rewards has integrated AI-driven data science models that draw from its extensive data ecosystem to drive hyper-personalisation. The latter goes beyond traditional personalisation by offering highly tailored, bespoke offers and experiences based on individual preferences and behaviours.

“Campaigns that leverage AI enable the delivery of more precise and tailored rewards,” says Ronnie. “This advanced data-driven strategy has led to significant improvements in customer response rates, incremental sales and overall return on investment. Much like leading global brands, TFG Rewards is setting a benchmark for AI-driven personalisation.”

Global retailers such as Walmart have pioneered the use of AI in loyalty and customer experience. TFG has also invested in AI and machine learning to enhance its customer engagement efforts, reveals Ronnie.

“The implementation of an advanced machine learning (ML) operational environment and AI-driven data science capabilities enables more effective personalisation and decision-making, ensuring that the programme can anticipate and respond to customer needs more efficiently,” she says, adding that TFG Rewards' AI-powered strategy is delivering significant value to both customers and the business.

A relatively new trend in the local context is an emerging expectation that loyalty programmes can — and should — play a role in social causes. The latest BrandMapp research found that 13% of survey respondents said they expect loyalty programmes to support social and environmental causes, and 5% said they would like to redeem points into social or environmental causes. Causes that respondents said deserve to be supported include education, gender-based violence, youth issues, poverty, health, social issues, animal welfare, crime, early childhood development, feeding schemes, environmental issues, food security, sports development, wildlife conservation and housing.

In 2024, TFG Rewards partnered with Yaga, an online platform for buying and selling preloved fashion. The initiative encouraged South Africans to resell their preloved TFG clothing items on Yaga in exchange for TFG Rewards vouchers.

“Demonstrating that South African consumers are focused on sustainability, over 25,000 vouchers (redeemable at all TFG retail stores across South Africa) were issued to individual Yaga platform resellers within a four-week campaign period,” says Ronnie. 

The collaboration with Yaga, she adds, aligns with the group’s broader efforts to promote sustainability, supporting waste reduction and environmental awareness while offering tangible benefits to customers. 

Another local loyalty programme that has aligned itself to a social cause is MySchool, MyVillage, MyPlanet, which turns everyday shopping into a force for good. Members simply swipe their card, and a portion of their spend supports schools, charities or conservation efforts — at no extra cost. It’s a simple way to give back and drive meaningful change.

As loyalty programmes continue to evolve, their success depends on their ability to balance innovation with real customer value, including integrating personalised rewards, leveraging technology and offering engaging experiences.

“TFG Rewards is working towards a model that remains adaptable and relevant in an ever-changing retail and consumer landscape,” says Ronnie.

“Looking ahead, global innovation points to a shift towards flexible and dynamic rewards, giving members more choice in how they are rewarded. This includes a variety of options such as exclusive experiences and one-to-one personalisation tailored to individual preferences. By staying at the forefront of these developments, TFG Rewards and other leading loyalty programmes will continue to enhance customer experiences, drive engagement and create meaningful long-term relationships with their members.”