Loyalty crisis: South Africans switching brands faster than ever

In South Africa’s mature loyalty market, a paradox is unfolding. The usage of loyalty programmes has surged to 82% of economically active consumers (those with household incomes above R10,000 per month), up from 76% in 2023, according to the latest Truth & BrandMapp Loyalty Whitepaper.

But this boom masks a more profound crisis: consumers are juggling an average of 10.3 active programmes, cherry-picking deals and eroding brand allegiance. As Amanda Cromhout, CEO of Truth, notes, participation has ballooned from 3.6 programmes per person a decade ago, driven by economic strain. But is this loyalty, or mere opportunism?

Use of loyalty programmes surges

The data is stark. Thirty-five per cent of respondents report using programmes more than last year, a jump from 30%, as inflation gnaws at wallets. With food and energy costs soaring, loyalty schemes have become a financial lifeline.

The research, drawing on surveys of 35,000 economically active adults and 8,000 mass-market consumers (households with an income below R10,000), reveals how these tools buffer hardship. Dr Melanie van Rooy, CMO at Clicks Group, captures it bluntly: members redeem cashback not for luxuries, but staples like soap and toilet paper. Clicks ClubCard tops the usage charts at 80% penetration, reclaiming its crown for the fifth time.

Yet this enthusiasm breeds promiscuity. Seventy-seven per cent of consumers admit loyalty programmes influence where they buy groceries, shifting allegiances based on rewards. The figure drops to 51% for fuel, 46% for banking, 32% for clothing, 30% for pharmaceuticals, and 26% for restaurants or coffee shops. In essence, programmes designed to foster retention are accelerating churn.

Behaviour driven by price sensitivity

Mass-market consumers, who lag in usage at 63% and average 8.3 programmes, exhibit similar patterns but with sharper price sensitivity. Younger users under 25, at 66% adoption, are even more deal-driven, with only 27% increasing usage year-on-year compared to the 35% average.

The research pinpoints why: cashback is the preferred benefit, followed by birthday offers, points, and double points. Wealthier segments favour travel perks, while mass-market users lean towards gifts or samples. Forty-one per cent crave instant rewards, while 39% prefer accruing for bigger payouts, with these sentiments often overlapping.

But frustration simmers. Non-users, comprising 18% of economically active individuals and 37% of mass-market respondents, cite insufficient spending for decent rewards (22%) and lengthy earning times (15%) as the top barriers. Data security worries (6%) and redemption hassles (4%) add friction.

A post-loyalty economy

This multi-programme juggling act signals a post-loyalty economy, where ‘value’ transcends discounts. Global parallels abound: Comarch’s 2025 Customer Loyalty Predictions report notes that consumers worldwide belong to an average of 10.7 schemes, but active engagement often falters. In South Africa, the twist is local.

For all marketers, the implications are urgent. Traditional loyalty models, built on transactional rewards, risk commoditising brands. As consumers switch faster, retention demands reinvention.

South Africa’s loyalty landscape, now a global benchmark, demands bold pivots. No other marketing initiative has grown 22% in a decade. For those in branding and marketing loyalty programmes, the crisis is here: evolve, or watch loyalty evaporate.

Brave Group’s six-point plan for all marketers and loyalty programme directors:

1. Prioritise instant gratification: With 41% of consumers craving immediate rewards, shift from accrual models to quick wins, such as sign-up bonuses and non-transactional earnings, to hook consumers early and combat the “takes too long” barrier.

2. Hyper-personalise with data: Leverage insights showing 77% grocery shifts to tailor offers via AI, focusing on cashback for mass markets and travel for wealthier segments, while addressing data security fears head-on.

3. Bridge the digital divide: Since 66% prefer physical cards, invest in hybrid app-card systems with seamless integration to narrow the 34% app gap and boost engagement among under-25s and mass-market users.

4. Incorporate social purpose: Align programmes with education causes—consumers’ top priority—over sustainability, to build emotional loyalty and differentiate in a deal-saturated market.

5. Eliminate pain points: Scrap point expiration and simplify redemptions, directly tackling the 15% frustration with earn times and 4% hassle complaints to reduce churn.

6. Measure beyond usage: Track influence on behaviour across sectors, using researched benchmarks to optimise for ‘can’t live without’ status, to ensure programmes drive proper retention amid 10.3-scheme promiscuity.

South Africa's loyalty boom is not a comfort; it's a warning light. Consumers have never carried more cards or downloaded more apps, yet care less about which logo they swipe. That gap between usage and genuine attachment is where brands will win or lose. The task now is not launching yet another programme, but building value exchanges that feel fair, fast, and human: instant rewards, frictionless redemptions, more innovative data use, tangible social purpose, and proof that loyalty genuinely eases daily life. The marketers who treat loyalty as a living relationship (measured by behaviour, trust, and long-term value rather than sign-ups and points alone) will turn this post-loyalty economy into a competitive advantage.