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LOYALTY PROGRAMMES

Do customer THE USE OF LOYALTY PHOTO: GETTY/GALLO IMAGES
loyalty strategies programmes is fast becoming
popular in the South African
really work in retail sphere, where they are being used
the long term? in sectors ranging from pharmacies and
supermarket chains, through to clothing
Are South African shoppers loyal to a particular retail chain only outlets and department stores. But why
for as long as loyalty rewards and incentives are to their liking? the sudden interest?

Girland Chibaya ponders the point. Retailers have increasingly realised
that it pays to invest in customer
relationships, so loyalty programmes
are a popular way of collecting
information that helps increase loyalty
and intensify client relationships.
Another reason is that South African
retailers suffer from increasingly
undifferentiated offerings and low
barriers when it comes to consumers’
switching between chains. Hence,

18 strategicmarketing October 2016 – January 2017