The power of technology and safety in loyalty rewards programmes

Kinola Pather, CEO of Randgo

With 76% of South Africans using a loyalty programme, brands are embracing this opportunity to drive customer engagement and increase business growth. Of course, as technology continues to evolve, loyalty programmes have grown in sophistication. Some of the most successful ones in the world provide real-time rewards and personalised experiences. With the amount of personal information companies have access to in this connected environment, the safety and security of customer data are essential to maintain.

This is especially important at a time when more than $3 billion in redeemed loyalty points globally are fraudulent resulting in annual losses of approximately $1 billion. Locally, companies must therefore strike a balance between a user-friendly loyalty rewards programme experience and data protection. Customers need to be confident that their personal information is secure. At the same time, they must also benefit from the convenience that modern technology provides.

Technology simplifies the customer experience:

Designing a good loyalty programme begins with the user experience. Consumers want a loyalty programme that is easy to navigate and where relevant app based. It must also be accessible across multiple platforms putting the customer at the centre of the experience. This means a user-friendly interface is vital to increase engagement and satisfaction. After all, when customers can easily access their rewards, check their points, and redeem offers with minimal effort, they are more likely to stay loyal to the brand.

Realising the safety of instant gratification

Another powerful technology enabler has been the advent of delivering real-time rewards. By using advanced technology platforms, companies can track customer actions and issue rewards instantly. This provides immediate gratification for specific behaviours. Customers are therefore not only motivated to engage more frequently with the loyalty programme, but it passively reinforces specific behaviours – such as driving purchases to certain products, sharing feedback, or taking part in a promotion.

For example, a customer might earn points the moment they complete a purchase or refer a friend. These points can then be available to redeem right away. Real-time rewards foster a sense of excitement and encourage continued engagement, transforming customer interactions into rewarding experiences.

Adding a personal touch

Of course, if there is one thing consumers have come to expect from any loyalty programme is personalised experiences. By using technology to track customer behaviours, preferences, and spending patterns, brands can create personalised programmes that feel tailored to the individual. Furthermore, personalisation can help develop a deeper relationship with customers and make them feel as if the brand values and understands them.

Safeguarding customer information

Underpinning all of this is data security. As businesses collect and store large amounts of customer data, it becomes non-negotiable to ensure that this information is handled with care and remains compliant with regulatory requirements like POPIA and GDPR.

Additionally, consumers are increasingly aware of data privacy issues. This means any breach of trust can significantly damage a brand’s reputation regardless of whether this occurs through a hack or a company’s misuse of customer information. Businesses must therefore be proactive when it comes to safeguarding customer data.