Now cash strapped South Africans can fuel their savings in 2021

By Opinion Time of article published Jan 18, 2021

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Retailers and other service providers are upping their loyalty game to attract South African consumers and create more value for customers. Last year, Shoprite launched its Xtra Savings card and more than a million customers joined in the first 72 hours while Checkers credit their loyalty programme for a R4bn market share gain.

So, what is the deal with loyalty programmes – are they worthwhile?

According to the 2019/2020 Truth and BrandMapp loyalty landscape survey, 72% of South African consumers used loyalty programmes in 2019. Nathea Nicolay, Head of Product at Sanlam Reality, explains that loyalty programmes use engagement to drive behaviour, reward customers and ensure the brand stands out from competitors.

In the world of ever-increasing fuel costs, fuel has become a golden opportunity for a loyalty programme to engage, reward and stay top of mind. According to research by Truth Loyalty and Reward Ltd, it is the number one redemption of choice for South Africans.

“There are more than 10 major brands across the retail, medical and financial services industry that have partnerships with SA fuel companies, allowing customers to redeem benefits when purchasing fuel and swiping their loyalty card,” explains Nicolay. “The Sanlam Reality Money Saver Credit Card will offer a welcome guaranteed cashback to cash strapped South African consumers. R1 back per litre of fuel purchased at Total service stations – no tiers, ifs or buts.”

Comparing SA fuel rewards programmes

  • Sasol and Absa: This fuel rewards programme determines the percentage of your fuel reward based on the tier you are in, ranging from 0.5% to 20%. The programme also comes with a monthly fee charge.
  • Discovery and BP/ Shell: This programme gives cashback rewards of up to 50% if members are covered under Discovery Insure and are a member of the classic, essential, or purple plans.
  • Total and Dischem: This reward allows members to earn ten points for every litre of fuel purchased, amounting to 10 cents for every litre.
  • FNB’s Ebucks and Engen: Members earn at least 10 cents to a maximum of R4 for every litre bought depending on the limit that is specific to their FNB or RMB account.
  • Caltex and Standard Bank: This programme allows UCount fuel reward members cashback from 20 cents up to R5 for every litre of fuel bought.

“As a latecomer to the fuel rewards loyalty programme, Sanlam had to think out of the box to create a value proposition worthy of consideration. We also had to consider how to reach more customers in an already crowded space”, explains Nicolay.

How it works

The Sanlam Money Saver credit card acts as a micro-savings vehicle, giving you R1 back on every litre of fuel you purchase at one of the 550 Total service stations nationwide. In addition, the credit card is a fully functional Master Card and gives 5% cash-back on non-fuel spend if you have the Sanlam Money Saver co-save card - a great offer for the already cash strapped consumer.

To reward good money habits, Sanlam gives customers a 2.5% cash-back on every rand spent provided they also contribute 2.5% into a savings vehicle. Should they spend their money at a participating Reward Partner like Incredible Connection, Adidas, Tiger Wheel and Tyre to name a few, the Reward Partner will give 5% cashback! The fuel deal is the only deal where every cardholder is guaranteed a R1 back for every litre of fuel purchased.

Why is the R1 deal a generous offer? Nicolay explains that most loyalty programmes tier their members by paying less than R1 cash-back to most members to allow them to pay a generous reward to a small percentage of elite customers with big portfolios/support. “The Sanlam Money Saver Credit Card does not differentiate based on tier status or the size of your financial portfolio. It simply guarantees every cardholder a R1 back for every litre of fuel purchased at Total.”

“And you don’t need to jump through hoops to get it either. During these times of uncertainty with the Covid-19 pandemic and resultant economic downturn, all consumers can benefit from a guaranteed cash-back,” concludes Nicolay.

PERSONAL FINANCE

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