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The ups and downs of customer loyalty

Pick n Pay has been making headlines following its announcement to only reward Smart Shoppers on every R2 spent instead of each rand, which effectively halves the cashback rate to 0.5%. The programme overhaul has been met with a negative response from “I'm off to Spar” to “more down ratings” to “junk status”, including that of Clive Evans, who says there was no real noise or transparency with regard to this major adjustment.

Having the opposite effect, McDonald's South Africa's recent National Breakfast Day promotion was less about actively marketing its R10 special and more about saying thank you to its loyal supporters. For the restaurant chain, the focus is rather on “everyday good value”. Retail editor Lauren Hartzenberg interviews CEO Greg Solomon to find out more.

While retailers are caught between offering discounts in tough economic conditions and protecting margins, we echo Evans' sentiment in that regardless of the business' objective, “it's not just what you do, it's how you do it - and customer experience should never be overlooked”.


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BizWeekly top stories
Smart Shopper card - junk status?
Smart Shopper card - junk status?

Clive Evans

I have long been an advocate of Pick n Pay, admiring and talking up how much they do to both attract and retain customers with their Smart Shopper loyalty programme and their various promotions to create sticky customers. That was until... Read

Burgers, breakfasts and beyond with McDonald's SA
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McDonald's South Africa serves over a million breakfasts every month, meaning that its recent National Breakfast Day promotion... Read

Image credit: Kevin Sutherland via Business Day
Pick n Pay slashes Smart Shopper rewards

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Adcock opts to snap up Virtual Logistics
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Commercial Property
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Johannesburg Mayor, Herman Mashaba, officially unveiled the Alex Mall noting that the mall is a great stepping stone for Alexandra... read
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E-commerce
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In case you are thinking about starting an online e-book store, maybe it's the right time to read more about the advantages that this specific type of business brings... read
Exhibitions & Events
Euroshop 2017: Insights from the show
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The Clarion Group looked forward to attending this year's Euroshop 2017 in Dusseldorf, Germany, as it always gives a very clear idea of the direction in which the retail sector is moving... read
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With just three weeks until the opening of an even bigger and better WTM Africa, the team is extremely thrilled to have seen a significant increase in both buyers set to attend the show, as well as pre-registered visitors... read
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McDonald's SA celebrates National Breakfast Day with customers
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Sasha-Lee de Bod

By incorporating an efficient franchisee support structure in your network, you will ensure that franchisees are more motivated... read
Green Sustainability
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It's the eco-friendly, super comfortable flat that's taking off. Rothy's flats are made from just one material: polyester fibre sourced from 100% recycled water bottles... read
A landfill is no place for plastic bottles
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Sindy Peters

Because their usefulness extends well beyond their original purpose, and to bury them in earth is exceptionally wasteful... read
Hospitality
Fresh flavours at Avondales's new Faber
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Ruth Cooper

Is there anything more delightful than enjoying a variety of top quality dishes in a beautiful setting? In my opinion, there are not many activities that top this. read
Manufacturing
Manufacturing Indaba returns in June
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The Manufacturing Indaba, now in its fourth year, will be hosted at Emperors Palace from the 27 to 28 June 2017. Planned keynote addresses and panel discussions... read
Manufacturing output still positive but lower than in month before
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Packaging
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Retail
#HungryLikeALion flash mob wows crowd
Retail Marketing
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Retail Services
SA Florist improves supply chain efficiency with BrandChat bot
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Retailers
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Sponsorship
Heineken extends UEFA Champions League sponsorship
Supply Chain
Couleur via
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Training
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Rene Albasini from the SACSC and Professor Chris Cloete from the University of Pretoria.
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International
(c) Panithan Fakseemuang -
eBay founder pledges US$100m for global journalism
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Business
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Tumisho Grater, economic strategist at Novare
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Senior Buyer - Johannesburg
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New events to diarise
Mall Indaba - 18 Apr 2017 to 19 Apr 2017, Sandton
Attend Mall Indaba, a two-day conference designed for shopping centre managers and marketers - focusing on various mall challenges, management and marketing. Get advice and guidance from 12+ industry leaders. Read more >>



Event and festival management courses for event managers
Muchomoo - 10 Apr 2017 to 11 Apr 2017, Johannessburg


Axis Solutions Day
Axis Communications - 19 Apr 2017, Cape Town


Short course in customer experience practice
Enterprises University of Pretoria - 19 Apr 2017 to 21 Apr 2017, Pretoria | 28 Jun 2017 to 30 Jun 2017, Pretoria | 29 Aug 2017 to 31 Aug 2017, Pretoria | 25 Oct 2017 to 27 Oct 2017, Pretoria


Product Recall Crisis Management
The Reputation Go-to Guy - 16 May 2017, Johannesburg


B2B Trade Conference
Vukani Communications - 18 May 2017 to 19 May 2017, Johannesburg


Effective Purchasing and Supplier Management Techniques
Alusani Skills & Training Network® - 22 May 2017 to 24 May 2017, Johannesburg


Customer Journey Design Course
Brandlove - 25 May 2017 to 26 May 2017, Johannesburg


SAPICS Conference and Exhibition
4 Jun 2017 to 7 Jun 2017, Cape Town


Customer relations
Provox Centre for Public Relations & Communication - 24 Aug 2017 to 25 Aug 2017, Johannesburg


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