Loyalty Program Fatigue Is Real
Loyalty participation dropped 18% YoY among under-35s. Points-based models are losing relevance.
Methodology
Sample size
n=1,200 under-35 respondents
Geography
Southern Africa — ZA, BW, NA, MZ
Period
Q4 2025
Self-reported loyalty engagement; recall bias possible.
Last refreshed 20 Jan 2026
Market Sizing
$3.6B
TAM (Pan-Africa)
$1.2B
SAM (Addressable)
14.2%
CAGR 2026–2031
4
Key Regions
Regional Breakdown
Source: Truth & BrandMapp SA Loyalty Landscape 2026, Deloitte Africa Consumer Insights 2026
Signal
Active participation in bank loyalty programs dropped 18% YoY among under-35 segments.
Insight
Points-based loyalty feels disconnected from daily value. Younger users prefer instant, tangible rewards over accumulated points.
Business Implication
Legacy loyalty programs are becoming a cost centre rather than a retention driver.
Recommended Actions
Shift from points to instant cashback or experiential rewards
Personalise rewards based on transaction behaviour
Integrate loyalty into the core product experience, not a separate programme
IdeaToola Advantage
IdeaToola benchmarks loyalty program effectiveness across African banks and fintechs, identifying which reward models drive actual retention.