Tag: rewards

PnP under fire for Smart Shopper points

When Pick n Pay introduced its rewards programme, Smart Shopper, in 2011, its success was so stunning it took the retailer by surprise.

For every R100 spent, shoppers would receive R1 back in cash-back points, which were initially valid for three years. On certain items, it offered double or triple points, or instant savings. It’s no surprise that Smart Shopper has been voted the country’s favourite rewards programme.

The impact on the bottom line forced the retailer to reassess its offering to its 10-million-plus card-holding customers, so last April, it halved the value: for every R200 spent, customers receive R1 in cash-back vouchers.

On January 1 this year, PnP introduced a new policy, expiring Smart Shopper points 12 months after they were earned.

The move’s not gone down well with many shoppers.

David Ramsay wrote to complain: “I have been an active customer at Pick ‘n Pay for as long as I can remember. I am in my 60s and, although working, I was saving up my points for a small LCD TV.

“In December, I had accumulated R557-odd and was making good progress on my goal. I received an SMS on January 18 informing me to redeem 2513 points that will expire on February 1. I subsequently went to Pick n Pay on January 20 and received a payout of R176. This is definitely not the way to treat loyal customers but I’m sure there are thousands out there with the same gripe.”

David White, who described himself as “disgusted”, wrote: “At the end of last year Pick n Pay took about R400 off my Smart Shopper account without any warning. They have been emailing me every week with details of the special offers that have been available for loading for that week onto my Smart Shopper card.

“They at no stage, however, took the trouble to mention that I had R400 of Smart Shopper points that were going to expire at the end of 2017, and that I needed to convert these points into cash and use them by the end of the year. I now feel that I have been robbed.

“They have been advising us that points expire after one year, but we had no way of knowing when the year was up for these points and when we needed to spend the money by.”

But PnP says it has done all it could to inform customers. The head of marketing, John Bradshaw explained: “We have tried to make sure customers know that their points last a year from the day they are earned.

“We first informed Smart Shoppers about this in November 2016 and have been communicating about expiry across personal emails and SMSes.

“We also realised that some customers may have opted out of receiving emails or SMSes from us, so we put reminders about points lasting a year on till slips too – from early December last year on every till slip across all stores.”

Email fatigue is a factor, which is why so many of us opt out of communication: we simply don’t pay attention to SMSes, or e-mails because much of it is spam. And not many read their till slips thoroughly, so barring tellers being instructed to inform each shopper personally, which is a big ask, it’s down to customers to ensure that they read communications from the retailer.

After all, if you’ve signed up for a rewards programme, you might want to take note.

Bradshaw says the way to avoid forfeiting the points is to exchange them for vouchers or cash before they expire, which will extend their validity to three years.

PnP’s also introduced new technology to communicate with customers on a more personalised level, Bradshaw says, which means they will be told when and how many of their points will be expiring.

“We do hope this will mean customers make the best use of their points. You can see this at the top of our weekly e-mail, for those customers who have given us permission to contact them via e-mail. We would encourage our customers to check how they’ve selected the form of communication they’d prefer so that they don’t miss out on important information, or great deals.”

I also don’t look at e-mails from retailers, but noticed on my most recent Smart Shopper mail that it didn’t mention when the points would expire, only that they would.

Same with the till slip. It’s a crucial detail: without telling consumers when they are about to expire, they aren’t likely to pay enough attention to the message.

By Georgina Crouth for Supermarket & Retailer

Black Friday has evolved into so much more than just finding the best discount. It has also become a clever way to earn points and rewards from your bank and loyalty programmes, with several leading lenders taking part in the retail phenomenon this year.

Dr Christoph Nieuwoudt, CEO of FNB Consumer says that e-commerce is likely to get a boost around Black Friday and Cyber Monday as some consumers will be looking to avoid the long queues associated with such shopping sprees.

“Any savvy shopper can cash-in on the specials without spending time in queues and traffic, trying to move from one destination to another. While e-Commerce is still in its infancy in South Africa compared to global standards, both the consumer and retail sectors are warming up to the use of technology to deliver and acquire goods and service.

“From placing a food delivery order, buying clothing, booking a taxi ride or renewing your license disc, it’s all being integrated into the virtual world and available at your fingertips.”

Dr Nieuwoudt said, broadly, the use of online shopping is a trend that has been gradually gaining momentum locally, pointing to the growing number of customers who are using the bank’s digital platforms to purchase goods and services.

“We expect the use of technology, especially for day to day services, to increase significantly over the next few years, partly because consumers are starting to realise that it’s both inevitable and a much better way to do a lot of things,” he said.

And while digital transactions may be on the rise, Geoff Lee, Absa head of card, noted that approximately 65% of all transactions in South Africa are still done in cash, which he warned was dangerous and inconvenient.

“The perks of plastic are fast eclipsing those of hard cash, particularly when you take into account the loyalty programme benefits that also come with card purchasing,” added Lee. “So the reasons for adopting this behaviour are simple and logical: it’s faster when you Tap-and-Pay, it’s safer than carrying cash, you earn rewards when you swipe, and you can easily track your spend.”

BusinessTech looks at what some of the major banking groups will be offering on Black Friday 2017.

Absa

To help customers save and start using cards more, the bank said it has partnered with a number of leading retailers to bring customers registered for Absa Rewards ‘even better’ specials this Black Friday, 24 November 2017.

Absa’s one-day-only Black Friday specials include:

Every customer that opens a Dynamic Fixed Deposit account and keeps it running for 12 months will earn up to 8.20% when the account is opened at any Absa Branch, or through your Private Banker.

You won’t pay commission when you buy your Forex from any Absa branch on Black Friday.
Absa Rewards members will enjoy as much as 7% cash back when you swipe your Absa card at any Tiger Wheel & Tyre for transactions greater than R4 286.

Instead of earning up to 15%, you will earn as much as 30% in Cash Rewards when paying with your Absa card at hi-stores, which are owned by The Foschini Group and offer a comprehensive portfolio of 18 retail brands that cover clothing, footwear, jewellery, sportswear, mobile phones and technology products, and home stores.

Relax at select Mangwanani African Spas on Black Friday and pay R599 for a half day spa which includes three treatments and a meal. Bookings must be made and paid for by card on 24 November 2017; the deal will be applicable for Tuesday and Friday bookings until 24 December 2017.

Get 1% cash back when you purchase a 2017 Toyota RAV 4 and get 7 years / 150 000 km Service Plan and an eight-year Unlimited mileage warranty. Or get R15 000 deposit assistance from McCarthy.co.za when you buy a 2017 Polo Vivo Trendline 1.4 and still earn 1% cash back.
Get as much as 50% off on back-to-school bundles, IT hardware, stationery and more when you use your Absa card for online purchases made on Bidvest Walton’s website, www.waltons.co.za. You will also receive your normal benefit of 3.5% in Cash Rewards.

Standard Bank

With Standard Bank, customers will be able to collect double UCount Rewards Points when swiping their Standard Bank Credit Card at the group’s Rewards Retailers this Black Friday.

The bank will also run special offers through its business banking unit, which will be announced on Black Friday.

FNB

FNB, through its rewards programme, eBucks, will offer Black Friday deals with an 80% discount on its products for members.

The company told MyBroadband that Black Friday fits in well with a bigger campaign it is currently part of – Tap Into Summer with FNB & eBucks.

The Tap Into Summer campaign started on 1 November and offers FNB customers and eBucks members good deals from the eBucks Shop.

“In addition, during this campaign eBucks Shop offers great deals daily which are valid for one day,” it said.

On Black Friday, a discount of 80% will apply on its products – including electronics, appliances, gaming, and consumables.

The eBucks Shop will also offer free delivery on selected products during this period.

Source: Business Tech

Who has SA’s best loyalty programme?

Clicks Clubcard has taken over the top spot as the most used loyalty programme at 67%. The Clicks brand took over the top position from Pick n Pay and their Smart Shopper card system, with Pick n Pay, ranked in second place with 66%.

The third spot belonged to Dischem with a sizeable jump down to 44% who climbed two places compared to last years list.

These are results from the 2017 Truth Loyalty Whitepaper, which is a complete annual look at the loyalty habits of 28 273 adults with a gross monthly income of R10 000 or more.

Loyalty programmes are up 8% compared to 2016 which makes the number of loyalty programme users stand at 79%.

With four out of five South Africans now using loyalty programmes, people view memberships as something that is worth their while.

The CEO of Truth, Amanda Cromhout, said that it has been another tough year for South Africans and political and economic instability always ends up hurting the consumer’s pockets.

Clicks reported that the loyalty programme membership has grown to 6.- million members which make up 77,4 % of sales.

The Edgars Thank U card retains their spot in fourth place but Woolworths fell two places to fifth place this year.

FNB has remained the most used loyalty programme for banking while being ranked in sixth place and Spur at the seventh place is the only restaurant on the list.

Loyalty programme users have increased since 2016. Male loyalty programmes users stand at 74%, a 5% increase since last year and 84% of women are loyalty programmes users, an 11% increase compared to 2016.

Consumers should be selective about the programmes that they join. Cromhout said that her advice to consumers is to focus on the brands you use most often and whose loyalty programmes rates are fairly high. The ideal rate should be between 2-5%.

Some of South Africa’s other loyalty programmes are:

1. Exclusive Books Fanatics
2. Discovery Vitality
3. SAA Voyager
4. Standard Bank UCount
5. MTN 1-4-1

Source: Supermarket & Retailer

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My Office News Ⓒ 2017 - Designed by A Collective


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