Home Book retailers South Africa Loyalty Programs Market Intelligence Report

South Africa Loyalty Programs Market Intelligence Report

0

Dublin, May 17, 2022 (GLOBE NEWSWIRE) — The “South Africa Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – The report “Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.

Loyalty programs market in South Africa expected to grow 13.9% YoY to reach $512.9m in 2022

In terms of value, the loyalty program market in South Africa recorded a CAGR of 13.9% during the period 2017-2021. The South Africa loyalty program market will continue to grow during the forecast period and is expected to register a CAGR of 13.7% during the period 2022-2026. The loyalty program market in the country will grow from US$450.4 million in 2021 to US$857.3 million by 2026.

The scope of South Africa’s loyalty industry landscape is steadily increasing year on year with an increased focus on providing unique offerings to customers in the country. Traditionally, the loyalty programs on offer have been largely limited to the airline frequent flyer, financial services, and retail sectors. However, demand for loyalty programs continues to grow in other industries, including leisure, wellness, B2B, and even corporate social responsibility.

In 2022, South African consumers expect rewards as loyalty programs become even more popular. According to the Q1 2022 Global Loyalty and Rewards Market Survey, nearly 75% of consumers used loyalty programs in 2021. The global pandemic outbreak has caused a significant shift in consumer behavior in South Africa.

During the Covid-19 epidemic, more and more consumers turned to loyalty programs compared to the pre-pandemic period. With South African consumers even more invested in loyalty programs today than ever before, the trend is expected to see steady growth over the next four to eight quarters as loyalty programs have become part of consumer expectations in the country.

With the adoption of loyalty programs increasing year on year – a trend that is expected to continue in the short to medium term – growing consumer demand offers high growth potential for brands and retailers that have a loyalty program. well-designed and rewarding loyalty.

According to the publisher, consumers across the country are now expecting rewards from joining the loyalty program. Therefore, these brands and retailers are expected to do well, which provides consumers with additional perks and benefits. Additionally, the growing preference for personalization is also expected to become a key growth driver for loyalty programs over the next two to three years.

Overall, the publisher expects the industry to continue its upward momentum and see strong growth in the short to medium term in South Africa.

Retailers plan to boost loyalty programs to further accelerate growth in South Africa

The number of retailers developing and launching loyalty programs to attract new customers has exploded over the past three to four years. Amid this growing adoption of consumer loyalty programs and competition among retailers, companies are planning to strengthen their loyalty programs to further accelerate their growth in the country.

  • In March 2021, Shoprite, one of the nation’s leading retailers, announced that the company planned to strengthen its customer loyalty program. Since the inception of the customer loyalty program, more than 17 million members have joined the service as of March 2021. Additionally, over the same period, the retailer has handed over R2.1 billion in savings in customers’ pockets.
  • The company also launched a k’nect mobile virtual network, in March 2021, with the aim of improving the customer experience. Notably, the launch of k’nect came as Pick n Pay, one of the country’s leading loyalty programs, launched PNP Mobile and Boxercom.

Travel Loyalty Program Providers Enter Strategic Partnerships with Airlines to Expand Growth in South Africa

In order for more customers to enjoy the benefits of their loyalty program, travel loyalty program providers are entering into strategic partnerships with airlines, which will also help them accelerate their growth in South Africa.

  • In February 2022, Legacy Lifestyle, a leading provider of travel-focused loyalty programs in South Africa, announced that the company had entered into a strategic partnership with Airlink, Southern Africa’s premier airline. As part of this strategic collaboration, Legacy Lifestyle has launched a loyalty program that offers passengers the opportunity to earn cashback when booking tickets with Airlink.
  • Notably, passengers receive cashback regardless of the type of ticket booked. In addition to cash back, passengers also enjoy many other benefits, including 15% off all Legacy hotels and up to an additional 8% off when passengers stay with them. With cashback being one of the favorite types of rewards for South Africans, the publisher expects the Airlink loyalty program to gain popularity among travelers in the country.
  • Established in 2011, Legacy Lifestyle has over 1.2 million members who earn and spend cashback across its partner network of 250 retailers, making it one of the largest multi-partner programs in South Africa.

The publisher expects Legacy Lifestyle to partner with more travel-focused brands and launch new loyalty programs during the forecast period. This will continue to drive the growth of the overall loyalty and rewards industry in the short to medium term in South Africa.

Entertainment companies launch customer loyalty rewards programs in South Africa

In South Africa, consumers demand rewards from every brand and retailer they are associated with. In response to this growing demand, entertainment companies are launching rewards programs to reward their most loyal customers in South Africa. For example,

  • In November 2020, MultiChoice, one of the leading entertainment groups in South Africa, announced the launch of its rewards programs for each of its customers in the country. The DStv Rewards Program allows subscribers to earn rewards on DStv products. Notably, the rewards program was first launched in August 2020, and it was rolled out to all DStv customers in November 2020.
  • The rewards program offered by MultiChoice gives subscribers the opportunity to receive more content with upgrades and discounts. In addition to this, subscribers can also get additional benefits from BoxOffice, ShowMax and other DStv products and services. Like other loyalty and rewards programs launched over the past three to four years, the DStv rewards program is also available to subscribers at no additional cost.

These loyalty and rewards program launches are expected to further promote the growth of the loyalty and rewards program industry in South Africa from a short to medium term perspective.

Scope

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Functional Areas, 2017-2026

  • Loyalty programs
  • Loyalty platforms

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026

  • Points-based loyalty program
  • Tiered Loyalty Program
  • Subscription Loyalty Program
  • Loyalty program
  • Coalition Loyalty Program
  • Hybrid Loyalty Program

South Africa loyalty spending market size and future growth dynamics by channel, 2017-2026

South Africa loyalty spending market size and future growth dynamics by key sectors, 2017-2026

  • Retail
  • Financial services
  • health and wellbeing
  • Restaurants and food delivery
  • Travel and hospitality (taxis, hotels, airlines)
  • Telecoms
  • Media and Entertainment
  • Others

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Retail, 2017-2026

  • Diversified retailers
  • Department stores
  • Specialty stores
  • Clothing, shoes and accessories
  • Toy and hobby stores
  • Supermarket and Convenience Store
  • home products
  • Other

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Accessibility, 2017-2026

  • Access by card
  • Digital access

South Africa loyalty spending market size and future growth dynamics by consumer type, 2017-2026

  • B2C consumers
  • B2B consumers

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026

South Africa Loyalty Spending Market Size and Future Growth Dynamics by Software Platforms, 2017-2026

  • Custom built platform
  • Ready-to-use platform

South Africa loyalty spending market size and forecast by demographics and consumer behavior, 2021

  • By age group
  • By income level
  • By gender

For more information about this report visit https://www.researchandmarkets.com/r/lz0wnp