The latest research shows that for the first time, both male and female South African consumers are equally engaged in loyalty programmes, with 76% participation from each gender. This heralds a shift from the historical trend where loyalty programmes were predominantly favoured by women. It also shows how consumer behaviour is evolving and reflects a broader acceptance and use of loyalty rewards by men.
“Historically, women have led the charge in loyalty programme usage, often as the primary household shoppers,” says Kinola Pather, CEO of Randgo. “However, this equal participation from men suggests a growing recognition of the value that these programmes offer in managing personal and household expenses.”
Women are more likely to accumulate points for significant cashouts. Unlike men, who might prefer instant gratification through luxury purchases or immediate rewards, and women often view loyalty points as a form of savings. They strategically accumulate these points for bigger, more impactful redemptions. For example, purchasing bulk essentials or offsetting significant household expenses. This approach underscores a long-term, value-driven mindset that women bring to their loyalty programme participation.
“Typically, men look to quickly redeem rewards and turn their attention to tech gadgets, entertainment, or dining experiences. This difference in spending patterns highlights the divergent ways in which men and women perceive and use loyalty programmes and reflect how likely women are to stick with a programme to accumulate rewards that can be used as a cost-savings tool for household goods.”
Beyond how the different genders use loyalty programmes, the same research highlights distinct differences between those consumers earning above R25,000 per month and those earning less. Consumers who have greater disposable income, typically engage with a wider variety of loyalty programmes, averaging around 9.4 programmes per person. These consumers often prioritise rewards that offer luxury or lifestyle benefits, such as travel discounts or exclusive dining experiences.
On the other hand, the mass market consumer tends to focus on programmes that offer essential savings, such as grocery discounts and airtime rewards. This group uses fewer programmes, around 4.8 on average, but places a higher value on the tangible savings these programmes provide.
“Brands need to recognise these differences and tailor their loyalty offerings accordingly,” says Pather. “For higher-income consumers, offering rewards that align with their lifestyle aspirations is key, whereas for the mass market, the focus should be on everyday value and cost savings.”
South African brands should therefore take a more nuanced approach to their loyalty strategies. Understanding that both gender and income level significantly influence how consumers engage with loyalty programmes is crucial.
“By recognising and catering to these differences, brands can create more personalised and effective loyalty programmes that resonate with their diverse customer base,” concludes Pather.
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Author: Nhlalenhle Dlangalala from ByDesign Communications on behalf of Randgo.
Watch a A New Era of Gender Balance and Income Diversity in SA Loyalty Programmes video:
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