The magazine reports on a Harvard Business School study conducted in the United States, which reveals that increasing customer retention by as little as 5% can lead to an increase in profits of between 25% and as much as 95%.

Driven primarily by retailers, the number of national loyalty programmes in South Africa is upward of 100 and still growing, says Miles Hamilton, a research analyst at Truth Loyalty, a Cape Town-based consultancy that specialises in loyalty programmes. According to the magazine, that’s up from about 60 a decade ago.  

Usage per person is also on the rise. A recent survey by Truth Loyalty across more than 28 000 respondents revealed that 79% of consumers used at least one programme in 2017, up from 71% of consumers in 2016.  

"But consumers are also becoming more discerning," adds Hamilton. "Last year the average number of loyalty programmes used by women fell from 6.1 [programmes per person] to 5.6, and the average used by men fell from 4.6 to 4.3."  

 

The magazine highlights that for the airline industry, which was the first sector to introduce customer loyalty programmes, adaption has become essential.

"Flyers are no longer interested in earning only air miles," says Erik Venter, CEO of Comair. "Today, you must also be able to reward them through partnerships with the likes of retailers, car hire firms and hotels."

Also in the latest edition of the magazine, Issue 1 2018 looks at the growth of e-sports (competitive video gaming) and its relevance to marketers, an analysis of how evidence-based marketing is using science to test marketing theories and features an interview with Mike Abel. 

The IMM Journal of Strategic Marketing is published by the IMM Graduate School and is available in print and digital formats. It is read by professional marketers, business executives and IMM Graduate School students.

It is also distributed in eight African countries through the African Marketing Confederation. The print edition is sold in selected CNA and Exclusive Books outlets or is available via subscription. Copies are also distributed to a targeted professional mailing list and through airline lounges and student support centres.

For more information, visit www.imm.co.za. You can also follow the IMM Graduate School on Facebook or on Twitter.