How South Africans are using loyalty rewards to make their money go further

Ask AI 3minNew data has revealed how South Africans are using loyalty benefits to stretch their Randelas until the next pay day.

As South Africans, were are known for our resilience. No matter what, we have the ability to make a plan. Whether turning adversity into a punchline, finding a clever workaround or making a little extra money on the side, the ability to adapt is part of the country’s DNA.

And with rising fuel prices, higher grocery bills and the increasing cost of everyday living putting pressure on household budgets, consumers are finding new ways to make their money go further.

New data from Standard Bank’s UCount Rewards programme suggests that South Africans are becoming more strategic about their spending, with many making greater use of loyalty rewards to offset the cost of everyday essentials.

An analysis of UCount members’ transactions and Rewards Points redemptions over the 12 months to October revealed a 72% increase in the number of members using their points to pay for groceries.

Interestingly, the trend does not necessarily indicate that people are buying less. UCount members continued shopping for groceries at roughly the same frequency as a year earlier and purchasing similar quantities. Instead, they appear to be changing how they pay, using available rewards to ease the pressure on their household budgets.

According to Head of Loyalty and Rewards at Standard Bank, Fayelizabeth Foster, grocery spending remains a non-negotiable priority for consumers.

“What this data tells us is that our members are increasingly leveraging their rewards to help them offset that cost and many others. They are becoming increasingly strategic about how they stretch their budgets, Foster said.

Fuel is another area where consumers appear to be paying closer attention to the value they get for their money.

Fuel is another area where consumers appear to be paying closer attention to the value they get for their money.

Although higher fuel prices have pushed up overall fuel spending among UCount members, slightly fewer trips to the petrol station suggest that motorists are becoming more deliberate about when and how they fill up.

Fuel remains the programme’s most popular Rewards Points redemption category by value, highlighting the role loyalty programmes can play in helping households manage one of their biggest monthly expenses.

“UCount Rewards members continue to redeem their Rewards Points for fuel, which remains the programme’s most popular redemption category by value. This shows the important role rewards can play in helping South Africans manage one of their biggest monthly expenses,” Foster said.

The programme shows that members responded by making greater use of the offer and adjusting their fuel spending to maximise the available benefits.

“Consumers are becoming more aware of the value available through rewards programmes. Our data suggests that such value has become a bigger consideration in purchasing decisions, especially when the savings can make a real difference to everyday household expenses,” Foster says.

The figures also suggest that members are not letting their rewards sit unused for long. Approximately half of all UCount Rewards Points are redeemed within the first 10 days of being allocated, indicating that customers are incorporating these benefits into their monthly cash-flow planning.

While groceries and fuel remain priorities, South Africans are not giving up on the things that make life enjoyable.

UCount data shows that spending on entertainment increased over the past year, despite continued cost-of-living pressures, while fashion spending remained steady.

It suggests that consumers are trying to strike a balance between meeting their financial responsibilities and maintaining some of the lifestyle experiences and social connections that contribute to their quality of life.

From enjoying an outing with friends to updating a wardrobe or making time for entertainment, everyday pleasures still have a place in household budgets, even when money is tight.

Ultimately, the latest figures point to a familiar South African approach to financial pressure: adapting rather than giving everything up.

Whether it is using Rewards Points to pay for groceries, getting more value from every litre of fuel or finding ways to manage monthly expenses, consumers are becoming increasingly intentional about where their money goes.

Because making a plan is one thing South Africans know how to do, and increasingly, making their rewards work harder is part of it.