Pick n Pay's Smart Shopper programme, launched in 2011, has more than 6m members.
In an environment where retailers are trying to win over new customers and keep existing ones, loyalty card programmes have proved pivotal.
According to Pick n Pay Smart Shopper's general manager Steve Hoban, the programme evolved as Pick n Pay learnt more about what customers were looking for.
World Wide Worx data show SA has 14.7m smartphones in use, so a presence on a digital platform is key for retailers, which can use the capability to showcase promotions and drive people to their stores.
"You can switch points and receive a code to give to the teller to redeem the points you have converted to your Smart Shopper card, check your points balance, find out what vouchers you have available to you," the head of Pick n Pay's digital team, Georgina Muirhead, said.
Woolworths relaunched its loyalty programme in 2010, with WRewards replacing Woolworths World of Difference, and today it has 3m members. Clicks ClubCard has just over 4m.
Absa Investments analyst Chris Gilmour said Pick n Pay's Smart Shopper was the most successful loyalty programme in SA, "by a big margin".
"Six-million members is huge. Loyalty programmes aren't just about maintaining customer loyalty. The real payoff comes when you start mining information and using it for things like stock control. So you know exactly what people are buying, when and how. You can then aggregate all of that data to provide a strong predictive model," Gilmour said.
Pick n Pay has also introduced instant savings that allow customers to get 10% off certain products, similar to the WRewards programme.
"I'm assuming (new Pick n Pay chief executive) Richard Brasher is flexing his muscles, saying enough of this nonsense. Let's actually do this (loyalty programme) properly," Gilmour added.
Source: Business Day via I-Net Bridge
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