Before you read this, take a moment to open your purse or wallet and count how many loyalty cards you’re carrying.
Alex de Bruyn, founder and CEO of Let'sCreate. Image Supplied
How many do you actually use weekly or even monthly? And how many ensure that you buy from one grocery store, petrol station, or coffee chain over another? In other words, how many of the loyalty programmes you’re a part of actually serve their purpose and keep you loyal?
If you were to go purely on stats from the 2024/2025 edition of the South African Loyalty Landscape Report, which shows that 82% of South Africans use loyalty programmes or that they use 10.3 loyalty programmes on average, you’d assume the sector was in rude health. Dig a little deeper, though, and the picture quickly becomes much more complex.
For example, grocery retailers and fuel stations do very well out of loyalty, with 77% and 51% of consumers saying that loyalty programmes shift where they buy from in those categories. Health and pharmaceutical companies (30%) and restaurants and coffee shops (26%) benefit significantly less.
It’s also clear that there’s still a gap in making loyalty programmes attractive, especially among mass market consumers, where just 63% make use of them. Among the 18% of economically active and 37% mass market consumers who don’t use loyalty programmes, the biggest reasons given are not spending enough to earn decent rewards (22%) and taking too long to earn decent rewards (15%).
What loyalty programmes get wrong
Before we can reimagine loyalty, we have to acknowledge where most programmes go wrong. They are built for a customer who no longer exists. Legacy models like earn points, get discounts, or buy nine and get the tenth free rely on extrinsic motivation and outdated habits. But today’s consumer wants more than a transaction. They want an experience.
Loyalty must evolve from static rewards to systems that spark emotion, foster progression, and feel deeply personal. Modern users expect immediate feedback, tailored challenges, and rewards that reflect their behaviour, not just their spend. They want to feel seen, understood, and in control.
This is where most programmes fall short. They ignore the core drives that keep people engaged: curiosity, autonomy, achievement, and social status. Instead of building systems that adapt and respond, they offer blanket discounts and slow, linear reward loops. No surprise that even high-earning users disengage when there is no narrative, no tension, and no sense of progression.
The shift is clear. Loyalty must become a game worth playing. One where the user’s effort is recognised, their journey is personalised, and their rewards are not just earned, but felt.
Learning from the leaders
Some loyalty programmes are already ahead of the curve, and Discovery Vitality stands out. According to the South African Loyalty Landscape Report, it’s the one programme consumers “can’t live without.” Why? Because it doesn’t just reward, it motivates.
Vitality understands that relevance drives engagement. Goals are personalised based on where you are in your journey, meaning a beginner and an athlete can both succeed. This taps into development and accomplishment, letting members progress on their own terms, an essential driver in game design.
But what truly sets it apart is how it weaves game mechanics into everyday behaviour. Weekly goals unlock dynamic, chance-based rewards, a play on a digital gameboard, that combine unpredictability (what will I get?) with instant gratification. This layered design triggers emotional engagement while reinforcing habit loops. Rewards range from instant treats to versatile Discovery Miles, all delivered through a system that feels earned, not given. It’s not just functional, it’s fun. And that’s why it’s been Discovery’s most successfully exported product.
Loyalty is ripe for a game-changing shift
The future of loyalty isn’t in more points, it’s in more play. Customers today aren’t just transacting; they’re engaging, comparing, and constantly switching. In this attention economy, brands that win will be those that turn loyalty into an experience, not a ledger.
Gamification - done right- taps into human motivation: curiosity, progress, purpose, and belonging. It’s why users chase badges, complete challenges, and return for streaks. But most South African programmes are still built for yesterday’s consumer—linear, transactional, and static.
We need dynamic, personalised systems that adapt to behaviour and inspire action. Loyalty must feel alive. The Octalysis framework gives us the map - psychological drivers, real-time feedback, and game mechanics are the tools.
Disruption won’t come from bigger discounts. It’ll come from brands bold enough to build loyalty people love to play.
