Top Loyalty Programs in South Africa: Key Features and Tips

In South Africa, loyalty programs have become a key component of consumer engagement, with a significant rise in usage from 67% in 2015 to 76% in 2023.

Understanding what makes these programs successful can be the key to designing your own loyalty program.

In this blog post, we will explore the top loyalty programs in South Africa, highlighting their standout features and offering tips you can learn from.

Top Loyalty Programs in South Africa

Here you can find the best loyalty programs in South Africa, their key features, and what lessons you can learn from them when launching a successful loyalty program.

1. Checkers Xtra Savings

Checkers is a leading supermarket chain in South Africa, known for providing a wide range of groceries, household items, and fresh produce at competitive prices.

Checkers caters primarily to middle- and upper-income consumers, offering premium products like gourmet foods, wines, and imported goods, alongside everyday essentials.

The Checkers Xtra Savings loyalty program gives customers instant discounts and personalised deals, making it a popular shopping destination for cost-conscious South Africans.

Key Features:

• Instant Savings: Unlike traditional points-based systems, Checkers Xtra Savings provides immediate discounts on groceries. This appeals to consumers who prefer instant gratification and rewards.
• Personalised Offers: Members receive tailored promotions based on their purchasing history, increasing relevance and engagement.
• Xtra Savings Plus: This subscription option offers exclusive benefits like unlimited free deliveries through Sixty60, enhancing the overall value proposition.

Lesson for Brands: Instant rewards and personalisation can significantly enhance customer satisfaction and loyalty. Implementing similar features can drive more engagement and create a more personalised shopping experience.

2. Clicks ClubCard

Clicks is a well-known retail pharmacy and health and beauty chain in South Africa. It offers a variety of products, including pharmaceuticals, skincare, cosmetics, haircare, and wellness supplements, alongside household essentials.

Clicks is also known for its Clicks ClubCard, one of South Africa’s most popular loyalty programs. Through this program, customers can earn points for every purchase - these points are then converted into cashback that can be redeemed in-store or online.

It operates hundreds of stores across South Africa, and its focus on accessibility, affordability, and health services makes it a go-to for many consumers.

Key Features:

• Points System: For every R5 spent at Clicks or its partners, members earn 1 point. Points are converted to cashback, which is a compelling incentive for frequent shoppers.
• Double Points: Spend R1000 in a 2-month period to start earning double points, encouraging higher spending.
• Easy Enrollment: Users can sign up via the app or in-store, making it accessible and convenient.

Lesson for Brands: A well-structured points system with incremental rewards can encourage higher spending. Additionally, simplifying the sign-up process helps in increasing participation rates.

You can find more tips on how to improve the UX of your loyalty program in our dedicated guide.

3. Shoprite Xtra Savings

Shoprite is the largest supermarket chain in South Africa and across Africa, serving millions of customers with affordable groceries, household goods, and everyday essentials.

The brand is known for its commitment to providing accessible products to lower-income households, with a strong focus on affordability and convenience.

Its Xtra Savings loyalty program offers immediate discounts and special deals, making it particularly popular among value-conscious shoppers.

Shoprite’s wide range of products, from fresh produce to household items, positions it as a key player in the South African retail market.

Key Features:

• Instant Discounts: The program offers immediate savings of up to 40% on everyday essentials, appealing to budget-conscious consumers.
• Free Airtime Deals: Members receive additional perks like free airtime, which adds value beyond traditional grocery savings.
• Quick Sign-Up: The program can be accessed through multiple channels, including WhatsApp, USSD, and online, providing ease of use.

Lesson for Brands: Offering immediate, tangible benefits like discounts and additional perks can enhance customer appeal. Omnichannel loyalty ensures convenience and broad reach.

4. Capitec Live Better

Capitec is one of South Africa's leading retail banks, known for offering simple, affordable, and accessible banking solutions.

The bank focuses on providing low-cost, transparent banking services, including transactional accounts, savings, personal loans, and credit facilities.

Capitec’s key strength lies in its user-friendly digital banking options, allowing customers to manage their finances through mobile apps and online platforms.

The Capitec Live Better rewards program offers customers cash back and other rewards for using Capitec’s banking services, and its simplified and customer-centric approach has made Capitec one of South Africa’s most trusted and fastest-growing banks.

Key Features:

• Bank-Linked Rewards: Members earn cash back by meeting monthly banking goals, integrating financial behaviours with rewards.
• Simple Redemption: Cash back is automatically deposited into savings accounts, providing a straightforward reward mechanism.
• Goal-Oriented: The program encourages users to engage with Capitec’s banking services more frequently to achieve rewards.

Lesson for Brands: Integrating rewards with core customer behaviours, like banking, can increase engagement and create a seamless experience. Clear, actionable goals enhance user participation.

While many people think that loyalty has no space in the fintech industry, we believe that it can drive substantial business growth and set you apart from the competition.

Check out our dedicated guide to customer loyalty in the fintech industry to find out more!

5. Pick n Pay's Smart Shopper

Pick n Pay is one of South Africa’s largest and most prominent supermarket chains, operating a vast network of stores across the country, providing groceries, household items, clothing, and general merchandise.

Pick n Pay caters to a wide range of consumers, from budget-conscious shoppers to more affluent customers, offering both value and premium products.

Pick n Pay's Smart Shopper loyalty program is one of the most popular in the country, rewarding customers with points for their purchases, which can be redeemed for discounts and special offers.

Key Features of Smart Shopper:

• Earn Points: Shoppers accumulate points on all qualifying purchases, which can be converted into vouchers or used to pay for groceries.
• Special Offers: Smart Shopper members receive exclusive discounts, personalised offers, and promotions based on their shopping habits.
• Partner Rewards: Members can also use their points with various partners like fuel stations, airlines, and other retailers, expanding the program’s benefits beyond Pick n Pay stores.
• Easy Management: Customers can manage their points and check their balance via the Pick n Pay mobile app or website.

Lesson for Brands: Smart Shopper is known for its flexibility, allowing customers to choose when and how they redeem their points, and for offering frequent bonus points promotions to boost the rewards they earn. 

It appeals to a wide range of South Africans, from budget-conscious shoppers to those seeking to maximise their savings with partner rewards.

6. South African Airways Voyager

SAA Voyager is South African Airways’ frequent flyer program and the second most valuable loyalty program in Africa, valued at $74 million.

It offers its members the opportunity to earn and redeem miles on more than 30 airline partners, including the global Star Alliance network.

With over 1 million members, the program also allows for miles to be spent on non-airline rewards such as Uber rides, retail products, and car rentals.

Key Features:

• Extensive Airline and Non-Airline Partners: Voyager members can earn and redeem miles not only with South African Airways but also across a wide range of international airline partners through the Star Alliance.
• Tiered Membership Benefits: The Voyager program offers multiple membership tiers. Higher-tier members enjoy exclusive perks such as priority check-in, extra baggage allowances, and access to VIP lounges. This encourages loyalty by rewarding frequent flyers with enhanced experiences.
• Flexible Redemption Options: Members can redeem miles for flights, upgrades, and other lifestyle rewards such as hotel stays, car rentals, and dining.

Lesson for Brands: The success of SAA Voyager highlights the importance of giving flexible reward options and valuable partnerships in loyalty programs. Brands should focus on creating a comprehensive loyalty ecosystem, offering a variety of rewards and benefits to engage a broader audience.

Additionally, tiered memberships with progressively greater perks can boost customer retention by encouraging long-term engagement and loyalty.

What brands can learn from these programs

1. Focus On Instant Gratification:
   • Many successful programs offer immediate rewards, catering to consumer preferences for instant benefits. Implementing features that provide instant savings or rewards can drive higher engagement and satisfaction.
2. Leverage Personalisation:
   • Personalised offers based on purchase history can significantly improve the relevance of rewards. Utilise data analytics to tailor promotions and enhance customer loyalty.
3. Create Multi-Tiered Rewards:
   • Offering different reward levels or bonus points for higher spending encourages increased consumer spending. A well-designed tiered system can motivate users to engage more with the program.
4. Simplify Enrollment and Redemption:
   • Make the sign-up and reward redemption processes as easy as possible. A frictionless experience boosts participation rates and ensures that customers can quickly access their rewards.
5. Integrate with Core Services:
   • Integrating loyalty rewards with core services or products, such as banking or grocery shopping, creates a more compelling value proposition. This approach can drive higher engagement and loyalty.