Standard launches its loyalty programme

Loyalty programmes are becoming increasingly common in SA's financial sector‚ signalling that banks and other companies realise the importance of moving beyond just offering a service if they are to retain customers and remain competitive.

With the launch of its UCount Rewards programme‚ Standard Bank follows First National Bank (FNB)‚ Absa and Nedbank‚ all of which have some form of loyalty programme in place already.

Standard Bank said its UCount rewards programme‚ launched in June‚ would reward customers for using their personal debit‚ cheque and credit cards.

Encouraging customers to use their cards when making purchases is arguably cheaper for banks and customers as it creates a reduced need to withdraw cash from ATMs.

Standard Bank said members of the rewards programme would receive points for all grocery purchases at most major retail stores. The bank would also reward its customers for every litre of fuel purchased at Caltex filling stations.

Hefty membership fees

Standard Bank will charge a membership fee of R20 per month or R240 a year‚ payable by debit order from a Standard Bank transactional account.

"There has been an investment to set up the programme and there is an ongoing cost to run the programme‚" Sugendhree Reddy‚ head of personal markets at Standard Bank SA‚ said on Tuesday (11 June).

"While we cannot divulge the cost‚ Standard Bank will be using the programme to develop long-term customer relationships‚ and maintain its position as a relevant‚ competitive retail bank in SA."

A like-for-like comparison of the bank rewards programme can be a challenge as SA's big four banks have different selling points to customers.

FNB has the well-known eBucks rewards programme which also rewards customers for using their bank cards to shop in certain stores and petrol stations. Rewards include discounts‚ voyager miles and other credits.

Since the inception of the FNB eBucks programme‚ about 13 years ago‚ the bank has made rewards worth about R3bn to its customers.

The eBucks programme is free and no annual membership fees are charged.

Nedbank has what it calls Greenbacks and also rewards customers for shopping with their bank cards. Nedbank charges an annual fee of R179 in order for customers to maintain their Greenbacks rewards accounts.

The Greenbacks programme allows customers to spend their points on flights‚ shopping vouchers and travel. At Absa‚ customers earn cash rewards.

Absa customers can redeem their awards for cash‚ airtime‚ shopping vouchers and other travel vouchers. Absa charges an annual fee of R252 or a monthly fee of R21.