Simpicity is key in securing customer loyalty

Absa Rewards Head: James Rheeder.

Absa Rewards urges for transparency in Rewards Programmes.

There is a need for transparency and simplicity within the numerous loyalty programmes in South Africa. This is the view of Absa Rewards Head: James Rheeder as South Africans now over 100 different loyalty programme offerings. “As if the multitude of loyalty and rewards programmes available to South African consumers is not confounding enough, customers are also faced with confusing qualifying criteria, complicated tiering- and earn-structures and all sorts of hidden costs and penalties,” he explains. “It doesn’t have to be this complicated and we certainly aren’t thanking our customers for their loyalty by misleading and confusing them.”

Rheeder believes cash is king when it comes to loyalty currency. “Loyalty points and complicated conversions are not always customer-friendly. The ability to earn Cash Rewards means customers are earning a currency that they don’t need to convert and they aren’t restricted to spending it in a specific location – they can do with it what they wish,” says Rheeder.

Ease of earn is vitally important in recruiting and retaining rewards members. “Customers don’t want to go through complicated and time-consuming processes in order to earn their rewards – they should be rewarded for what they do every day. A simple swipe of their credit or debit card is all that should be required in order for them to earn rewards,” says Rheeder. And when it comes to redemption, it should be equally as uncomplicated. “Customers should be able to redeem their rewards any time of the day or night for whatever they desire – not only for the specific products or services outlined by their loyalty programme.”

Rheeder urges consumers to read the fine print before signing up for a loyalty programme, “Check for qualifying criteria – they may say you can earn up to 15% if you’re in the highest tier, but what is it going to take to get to that tier? Is it possible for you to attain that tier and, if you aren’t on that specific level, are you earning much in return at all?” warns Rheeder. There may also be cost implications involved – membership fees might be minimal but you could be faced with redemption fees, fees for obtaining a balance on your loyalty account, penalties for dormant loyalty accounts. “Be aware of all the costs involved in your loyalty programme and make sure that it’s going to be worth your while.”

Added-value benefits and services are also important tools for rewarding customers. Rheeder explains, “Your customer might not be bothered with earning rewards but they might really value the value-added services that are specific to your loyalty programme. For instance with Absa Rewards our members stand to benefit from Home Assist where the callout fee and first hour of service for a locksmith, plumber or appliance repairman is waived – simply by virtue of your Rewards membership. You can make use of our Lifestyle Concierge or Dial-A-Discount offering – these are all bonus benefits designed to make our members lives easier, to add value.”

Rheeder believes that today’s consumer is far more loyalty-savvy than in the past and knows how to maximise their loyalty offering to gain the maximum benefit. They also don’t give second chances and once they lose interest or are let down by a loyalty programme they’re not likely to return.

“Customers want to know that their rewards programme is going to be worth their while, that they are going to gain sufficient benefit to warrant their participation and that it will add value. And we as loyalty providers need to ensure that we meet those expectations,” ends Rheeder.