South Africa Loyalty Programs Market Report 2022-2026: Travel Loyalty Program Providers are Entering into Strategic Partnerships with Airline Carriers to Expand their Growth

DUBLIN, May 18, 2022 /PRNewswire/ -- 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 - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.

Loyalty Programs Market in South Africa is expected to grow by 13.9% on annual basis to reach US$ 512.9 million in 2022

In value terms, the Loyalty Programs Market in South Africa has recorded a CAGR of 13.9% during 2017-2021. The Loyalty Programs Market in South Africa will continue to grow over the forecast period and is expected to record a CAGR of 13.7% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 450.4 million in 2021 to reach US$ 857.3 million by 2026.

The scope of the loyalty industry landscape in South Africa has been on a constant increase year on year, with greater emphasis being placed on providing unique offerings to customers in the country. Traditionally, the loyalty programs offered were largely limited to frequent airline flyers, financial services, and retail industries. However, the demand for loyalty programs continues to grow across other industries, including leisure, wellness, B2B, and even corporate social responsibility.

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

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

With the adoption of loyalty programs growing year on year - the trend which is expected to continue from the short to medium-term perspective - the rising consumer demand offers high growth potential for brands and retailers who have a well-designed and rewarding loyalty program.

According to the publisher, consumers in the country now expect rewards from their loyalty program memberships. Consequently, those brands and retailers are expected to fare well that provide consumers with additional perks and benefits. In addition to this, the growing preference for personalization is also expected to become a critical growth driver for loyalty programs over the next two to three years.

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

Retailers are planning to boost their loyalty programs to further accelerate their growth in South Africa

The number of retailers developing and launching loyalty programs to attract new customers has exploded over the last three to four years. In the midst of this growing consumer loyalty program adoption and competition among retailers, firms are planning to boost their loyalty programs to further accelerate their growth in the country. 

• In March 2021, Shoprite, one of the leading retailers in the country, announced that the firm is planning to boost 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. Moreover, during the same period, the retailer has put R2.1 billion in savings back into the pockets of customers.
• The firm also launched a virtual network k'nect mobile, in March 2021 as a move to improve the customer experience. Notably, the launch of k'nect came at the time when Pick n Pay, one of the leading loyalty programs in the country, launched PNP Mobile and Boxercom.

Travel loyalty program providers are entering into strategic partnerships with airline carriers to expand their growth in South Africa

To have more customers enjoy the benefits of their loyalty program, travel loyalty program providers are entering into strategic partnerships with airline carriers, which will also assist them in accelerating their growth in South Africa. 

• In February 2022, Legacy Lifestyle, one of the leading travel-focused loyalty program providers in South Africa, announced that the firm had entered into a strategic partnership with Airlink, Southern Africa's premier airline. Under the strategic collaboration, Legacy Lifestyle has launched a loyalty program that provides passengers with the ability to earn cashback rewards when they book tickets with Airlink.
• Notably, the passengers receive cashback rewards regardless of the type of ticket booked. In addition to the cashback rewards, passengers also get a host of other benefits, including 15% off on all Legacy Hotels and up to 8% additional cashback when the passengers stay with them. With cashback rewards being one of the preferred reward types among South Africans, the publisher expects the Airlink loyalty program to gain increasing traction among flyers in the country.
• Established in 2011, Legacy Lifestyle has more than 1.2 million members who earn and spend cashback rewards across its partner network of 250 retailers, thereby 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 over the forecast period. This will keep boosting the growth of the overall loyalty and rewards programs industry from the short to medium-term perspective in South Africa.

Entertainment firms are launching rewards programs to retain customers in South Africa

In South Africa, consumers are demanding rewards from every brand and retailer that they are associated with. In response to this growing demand, entertainment firms are launching reward schemes to reward their most loyal customers in South Africa. For instance,

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

Such loyalty and rewards programs launches are expected to further promote the growth of the loyalty and reward programs industry in South Africa from the short to medium-term perspective.

Scope

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

South Africa Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026

• Loyalty Schemes
• Loyalty Platforms

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

• Point-based Loyalty Program
• Tiered Loyalty Program
• Subscription Loyalty Program
• Perks Loyalty Program
• Coalition Loyalty Program
• Hybrid Loyalty Program

South Africa Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026

• In-Store
• Online
• Mobile

South Africa Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

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

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

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

• Card Based Access
• Digital Access

South Africa Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026

• B2C Consumers
• B2B Consumers

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

• Software
• Services

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

• Custom Built Platform
• Off the Shelf Platform

South Africa Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021

• By Age Group
• By Income Level
• By Gender

For more information about this report visit https://www.researchandmarkets.com/r/3f2p7u

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets