For CEOs, CTOs, and CMOs in the retail space – particularly in competitive markets like South Africa – loyalty programs are often seen as a cornerstone of customer engagement. But too often, we’re brought into conversations where the program already exists and is underperforming. The instinct is to turbocharge it with advanced personalised marketing. Yet, in many cases, the problem lies deeper – in the very foundation of the loyalty strategy.
The Real Issue: Data, Design, and Differentiation
Across industries and borders, the core challenge tends to be the same: poor user profiling due to insufficient or poorly understood first-party data. This is compounded by an oversaturated loyalty landscape. In South Africa, loyalty program usage has jumped from 67% in 2015 to over 76% in 2023/24. But instead of standing out, many programs fade into the background – offering generic rewards and little value that truly resonates with consumers. The outcome? Engagement drops, costs rise, and expectations fall flat.
Where to Begin
If your loyalty program is underperforming, don’t rush to personalise campaigns until you’ve revisited the strategy, data foundation, and value exchange. Real growth starts with understanding your customers at a deeper level, crafting compelling reasons for them to participate, and ensuring the technology is in place to scale that experience intelligently and compliantly.
The xSMTHS Approach
We help brands go beyond points and tiers. Our work focuses on tightening the feedback loop between data and execution – using platforms like Braze® and Salesforce® to personalise engagement at scale. But we also zoom out to look at the loyalty model itself: does it reflect what today’s customer actually values? Is it flexible enough to evolve? Can it create meaningful moments, not just transactional rewards?
Smarter Loyalty, Smarter Growth
Loyalty done well doesn’t just increase retention – it fuels brand advocacy, drives data enrichment, and creates a flywheel for smarter marketing. The future of loyalty isn’t more gimmicks. It’s tighter strategy, cleaner data, and platforms that can adapt in real time.