The Cost, Pricing and Impact of Retail Gift and Loyalty Card

March 2021

Retailers in South Africa, know the benefits of Retail Gift and Loyalty Card Programs: increase sales, increase brand awareness and encourage repeat business, and many of them understand how to implement them.

However, what a lot of retailers don’t understand, is how much should they be spending to build and maintain their Retail Gift and Loyalty card programmes.

According to BrandMapp which is South Africa’s largest independent annual survey created using the responses of 25 369 people, answering 270 questions relating to product usage, loyalty programmes, shopping habits and media consumption, across 820 brands and 130 categories. In 2018/19, there was a continued high usage of Retail Gift and Loyalty Card Programs, indicating that 75% of South Africans, who are economically active, are using loyalty programmes.

Given that consumers are continuing to show interest in loyalty programs, companies are continuing to spend on them. For a business that is building a loyalty program from scratch and requires Retail Gift and Loyalty Cards, Cards Plus is able to assess the general requirements of the project and put together a solution that would be ideal for those requirements.

As for a formula that a retailer can use to calculate these expenses against results, unfortunately every business and every situation is different. Cards Plus is here to assist you with your Retail Gift and Loyalty Cards and we can assure you that value for money is definitely something we pride ourselves in.

When it’s a waste of time and money

Not all programmes are transparent, and some experts argue that the reward you’re getting is built into the price of what you’re buying. Stay away from programmes that seem complicated. Ensure that you’re not spending more than you should just for a discount or to join a club. Watch out for programmes that lack real value, like those that give you only 1% back of what you spent. Some programmes set the bar too high: They suggest that you could “get up to 15% back”, for example, but on closer inspection, very few people ever actually manage to get that much back.

Contact Cards Plus for more information on Retail Gift and Loyalty Cards.