South Africa poised to become a loyalty marketing gem

Abstract

Purpose This paper aims to examine the emergence of South Africa as a potential growth market for loyalty marketing strategies. A developing black middle class represents an under‐served market that presents significant opportunities for marketers and entrepreneurs. Design/methodology/approach The paper describes South Africa's emerging black middle class as a market poised for loyalty growth, based on up to 15 million currently registered loyalty members across a host of programs. Challenges include some deficiencies in technology. Opportunities include prevalent use of mobile telephony and economic growth. Findings The study suggests that the historically ignored black middle class can double its consumer spending power in short time and drive South African economic growth. The change in status quo presents significant opportunities for loyalty marketers who are still in the discussion stages of recognizing the new potential. Practical implications Loyalty marketers who are willing to accept the challenge of developing solutions for South Africa's emerging black middle class stand to reap rewards in a period of five to ten years. Originality/value The paper takes a look at loyalty marketing prospects in South Africa and suggests that marketers develop solutions for the relatively untapped, but emerging, black middle class sector of the economy.

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