When it comes to loyalty programmes, township consumers bank on PnP’s Smart Shopper card

Retailer Pick n Pay’s loyalty rewards programme, the Smart Shopper, was found to be the most popular among residents living in South Africa’s townships, a new report has found.

When it comes to loyalty programmes, township consumers bank on PnP’s Smart Shopper card
  • A new report has said that Pick n Pay’s Smart Shopper is the most valued loyalty scheme by shoppers living in South Africa’s townships.
  • Location, convenience, and age are all factors that influence which rewards programmes consumers subscribe to.
  • Marketing company Rogerwilco found that consumers over the age of 45 most likely value health retailer Click’s ClubCard.
  • For more stories, go to www.BusinessInsider.co.za.

According to the report, which culminated from a survey conducted by marketing firm Rogerwilco, 44% of the township consumers it polled said they preferred the Pick n Pay Smart Shopper over loyalty programmes of other retailers. On the whole, consumers in the township also viewed Pick n Pay as the cheapest retailer in the private label segment.

The report, which tracked consumer trends in South Africa’s townships, quizzed more than 1,420 people, the bulk of them, or 22% of the respondents earning between R1,000 to R3,999 a month. Fifteen percent of the respondents have an income of R4,000 to R6,999, and 6% make more than R30,000 monthly.

Health and beauty retailer Clicks’ ClucbCard was the second most loved loyalty programme, with 21% of the participants saying they prefer it.

The report found that location and convenience were significant drivers influencing consumers’ loyalty preferences. In South Africa’s largest township of Soweto, Pick n Pay has 17 outlets, while there are only three Checkers stores. On the other hand, Clicks has eight stores across the township; the dynamics play a role in what loyalty schemes subscribe to, it said.

In the category of township shoppers who fall under the age group of over 45, the Clicks ClubCard was the most valued and popular, suggesting that age also contributed to consumers’ loyalty preferences.

“[This] clearly [indicates] that as a person ages, health concerns take priority and convenience becomes less significant. It is also worth noting that loyalty preferences remain the same across all demographics,” the report said.

Spar’s reward programme was the third most-loved, followed by others, Woolworths, and Dis-Chem.

While the report found that township loyalty programmes remain largely untapped, where spaza shops are concerned, most locals would buy into rewards schemes by spaza shops. A total of 90% of the respondents said they would be interested in spaza shop loyalty programmes that would offer them cash backs or allow them to accumulate points.

“Customers are primed for a spaza shop loyalty programme… This is also a signal that with some innovation and digitisation, the Kasi economy can raise the profile of spaza shops in their communities,” the report said.

Published in Business Insider