Billions in cashback to members

South Africa boasts a mature loyalty market with a growing number of economically active consumers making use of loyalty and reward programmes.

The recently released South African Loyalty Landscape Whitepaper by Truth and BrandMapp revealed that 82% of South Africans use loyalty programmes, up from 76% in 2023 and 67% a decade ago.

More than a third of consumers in the BrandMapp survey said they were using loyalty programmes more than last year, up from 30% to 35%.

On average, South African’s actively use 10.3 programmes with women using slightly more at 11.1 and men slightly less at 9.6. Mass market consumers, defined as those who fall just under the R10,000 per month income level but have access to home internet and use online banking and email, use 8.3 programmes on average.

The survey provides definitive evidence that loyalty programmes do influence shopping behaviour, with 77% of respondents saying it determines where they buy groceries, where they buy fuel (51%), where they bank (32%), where they shop for clothes (72%), where they shop for health and pharmaceutical products (30%), and which restaurants and coffee shops they use (26%).

The 2024/2025 South African Loyalty Landscape Whitepaper reveals that Clicks ClubCard has reclaimed its position as the undisputed leader in the loyalty space after being voted the most used loyalty programme among both economically active and mass market consumers. This is the fifth time in the last nine years that this accolade has gone to ClubCard.

Established 30 years ago, Clicks ClubCard now boasts over 12-million active members and a 80% usage rate among economically active consumers. The success of the programme is rooted in its simplicity, accessibility, easily redeemable rewards, relevance and differentiated positioning.

Dr Melanie Van Rooy, Clicks Group chief marketing officer, says what allows ClubCard to continue to lead in the loyalty arena is the fact that it ensures sustained value and consistently fosters loyalty with innovative industry-leading benefits.

“ClubCard is a true loyalty card that provides members with an opportunity to earn up to 10% cashback — one of the highest earn rates in the retail vertical — in addition to promotional savings. The programme also meets the needs of the different life stages of its members through Baby and Senior Clubs,” she explains.

Research conducted by Clicks and supported by other independent studies indicates that cashback is the reward mechanism of choice for consumers.

BrandMapp research reveals that 41% of South Africans want to be instantly rewarded for loyalty to a brand and 39% want to build up points for big rewards, though these are not mutually exclusive.

Van Rooy says that 90% of ClubCard cashback earned is redeemed, highlighting its role in helping customers stretch their budgets, particularly relevant in the current economic climate.

“Over the past three decades ClubCard has returned over R7.5bn to members in cashback,” she says.

Cashback rewards can be increased across a network of partners in health, beauty, wellness and lifestyle including Engen, Discovery, ARC, Sorbet and Spec-Savers among others, as part of customers’ daily shopping journey. In total, Clicks has curated a strong ecosystem of 14 partnerships designed to enhance its “feel good, pay less” promise. These partnerships add real value by rewarding members for their everyday spending.

In today’s competitive retail environment, personalisation has become a crucial pillar. ClubCard members receive communication tailored to their shopping habits and which is supported by data-driven targeted offers. The group has integrated AI to personalise product recommendations, offers and creative content while its Chat.ClubCard system leverages GenAI for seamless data-driven decision-making, enhancing campaign outcomes and customer insights. Recognising that its most valuable customers are those who engage across both digital and physical channels, the retailer focuses on omnichannel personalisation.

Clicks launched an app in 2024 to further personalise offerings. The app allows members to access their digital ClubCard, track points and cashback, receive personalised offers and manage prescriptions.

A physical card has traditionally acted as the loyalty identifier. Over the past three years, however, the gap has narrowed between the number of consumers wanting to swipe a card (66% in 2024, down from 74% in 2022) versus using an app (34% in 2024, up from 28% in 2022), says the Truth and BrandMapp Loyalty Whitepaper. Interestingly, over 55s are more likely to use a card than any other channel.

BrandMapp’s research reveals that the youth — classified as those under the age of 25 — continue to use less loyalty programmes than older consumers. Van Rooy says Clicks has started to leverage younger consumers via AI-driven interactions on Meta and TikTok, an innovation which is helping the health, beauty and wellness retailer to deliver enhanced customer experiences and improved commercial outcomes.

“Innovations are key to ensuring that ClubCard remains relevant and continuously improves the customer experience while at the same time driving loyalty and engagement,” she says.

While Clicks ClubCard tops the overall leader board, including the retail sector in the most used category, FNB eBucks takes pole position among economically active consumers in the financial services category.

Capitec Live Better is the most used financial services programme among mass market consumers. In the restaurant and quick service restaurant category, Spur Family Card was ranked highest among both economically active and mass market consumers.

VodaBucks Rewards ranked highest in telco leadership for both economically active and mass market consumers while Shell V+ was the highest ranked fuel loyalty programme in both market sectors.