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Why Loyalty Programs Fail And How to Build One That Works in SA

Why Loyalty Programs Fail
This article covers:
Why Most Loyalty Programs Are Failing In South Africa
How Smart Brands Are Building Meaningful Loyalty
How DHL Is Helping Deliver On Loyalty Promises

Picture this: you’re at the till, and the cashier asks, “Do you have a loyalty card?” If you’re South African, that scene probably plays out every week — at the grocery store, the garage, or your favourite coffee spot.

Loyalty programs aren’t just a nice-to-have anymore. In a country where every cent counts, they’ve become essential tools for making our money go further. For millions, they’re the difference between scraping by and breathing a little easier at month-end.

That’s why, for businesses, there’s more at stake than simply running another rewards scheme. The real opportunity? Building loyalty that matters — loyalty that’s profitable, purposeful, and keeps customers coming back.

Why So Many Loyalty Programs Miss the Mark

Let’s be honest: not all loyalty programs are created equal. Too many South African schemes are caught between trying to offer real rewards and protecting the bottom line — and end up doing neither. Instead of turning customers into fans, they encourage deal-hopping. Some hang onto customers by making it hard to leave, rather than giving them a reason to stay. Others confuse people with complicated rules, or make rewards so tough to reach that you wonder why you bothered signing up at all.

Worse, many brands treat loyalty like a box-ticking exercise. They don’t measure what’s working. They don’t segment by customer need or value. Everyone gets the same treatment, regardless of how much they spend or how loyal they actually are. The result? Loyalty programs become just another hoop to jump through for a discount — not a reason to feel connected to the brand.

Here’s the thing: South Africans, faced with rising costs and shrinking budgets, are loyal to value first. If your program doesn’t deliver clear, immediate savings, it’s missing the point.

The Classic Loyalty Mistakes  And How to Avoid Them

The Classic Loyalty Mistakes And How to Avoid Them

  1. Points Without Purpose
    Old-school points systems that don’t lead to meaningful rewards are a turn-off. Over half of consumers walk away because the benefits just aren’t worth it.

  2. One-Size-Fits-All Offers
    Generic, copy-paste rewards don’t cut it. South Africans want to feel seen — with deals that match their habits, not just a birthday coupon that looks the same as everyone else’s.

  3. No Heart, No Story
    If your program doesn’t stand for something, neither will your customers. Loyalty grows when there’s a shared purpose: think sustainability, local community, or making life genuinely easier.

  4. Siloed Shopping Journeys
    Whether it’s online or in-store, customers expect a seamless experience. If your loyalty program doesn’t work everywhere they shop, you’re missing out.

  5. Confusing Terms and Conditions
    If it’s hard to figure out how to earn or use rewards, people will simply tune out. Keep it simple — or risk losing them altogether.

  6. Slow or Inaccessible Rewards
    No one wants to wait months for a small win. Quick, easy incentives keep people engaged and coming back.

  7. Lack of Meaningful Alignment
    As South Africans become more values-driven, especially younger customers, brands need loyalty programs that reflect what matters most to their audience.

How to Build a Loyalty Program That Works

Let’s get practical. If you want to move beyond points and coupons, here’s how to build loyalty that lasts:

Give Experiences, Not Just Points
Think bigger than discounts. Offer access to VIP events, sneak peeks, exclusive content, or rewards that make a real difference — like fuel vouchers, airtime, or savings on essentials.

Stand for Something
South African customers want to support brands that support their communities. Whether it’s education, local upliftment, or environmental causes, make it part of your program — and tell that story well.

Make Loyalty Fun
Inject some playfulness into your rewards. Instant wins, surprise bonuses, or gamified challenges keep things interesting and fresh.

Use Data to Get Personal
Don’t just know your customers’ names — know what they love. Recommend products, offer timely deals, and remind them when their favourites are on special.

Unify the Experience
Make sure your loyalty scheme works just as well online as it does in-store. Let customers earn and redeem rewards wherever they shop, without barriers.

Reward More Than Spending
Celebrate referrals, reviews, social shares, or even eco-friendly choices. Loyalty is about engagement, not just rands spent.

Purpose-Driven Loyalty: No Longer Optional

Today, loyalty programs aren’t side projects. They’re part of your brand’s backbone — shaping how customers see you, trust you, and talk about you. Done right, a loyalty program doesn’t just drive sales. It builds a community, turns customers into advocates, and forges deeper relationships.

South Africans want to back brands that understand them, value them, and stand for something bigger than a transaction.

That’s what real loyalty looks like.

DHL: Delivering Loyalty, Every Step of the Way

DHL: Delivering Loyalty, Every Step of the Way

There’s one more piece to the puzzle: fulfilment. The magic doesn’t end when a customer earns a reward — it’s only real when that reward arrives, on time, and in perfect condition. That’s where DHL comes in.

Whether you’re a small online business or a national retailer, DHL’s logistics expertise ensures your loyalty rewards reach your customers — wherever they are. From real-time parcel tracking to reliable, door-to-door delivery, we help you keep your promises and elevate your customer experience.

Open a business account with DHL today, and discover how we can help you deliver loyalty that’s seamless, reliable, and memorable.

Design Loyalty with Intention

South African businesses can’t afford to get this wrong. Gone are the days of bland points and distant discounts. Customers want connection, relevance, instant rewards, and a sense of belonging.

Build your loyalty program with purpose. Make it engaging, valuable, and true to your brand. Because real loyalty isn’t given — it’s earned, every single day.