As South African consumers navigate rising living costs and persistent economic pressure, loyalty programmes have evolved from “nice-to-have” perks into essential value engines.
At the same time, fintech innovation, real-time data and AI-powered retail technology are converging to reshape what loyalty looks and feels like.
Thabiso Msimanga, head of Customer at X, Bigly Labs by Dis-Chem, is the strategic mind behind one of the most recent forward-thinking shifts in local retail and fintech, bringing a blend of confidence, precision and cultural fluency that reflects a new generation of innovators.
Dis-Chem’s revamped Better Rewards programme marks a significant leap in how loyalty, fintech and data intersect to build a new digital value economy.
Powered by smart integration with Capitec and advanced backend systems, Better Rewards enables rewards to move as seamlessly as money delivering frictionless, real-time discounts that transform traditional loyalty into a dynamic financial experience.
Msimanga unpacks how this convergence is transforming customer expectations — and how retailers can respond by building intelligent, integrated ecosystems that deliver meaningful value.
How are fintech-driven payment innovations changing what customers expect from loyalty programmes in South Africa?
Fintech-driven payment innovations have raised customer expectations by normalising instant, frictionless, payment-linked rewards.
Loyalty programmes are seen to be creating a new value economy where rewards move as seamlessly as money. South Africans increasingly expect loyalty value to appear immediately at the till or in their banking app, rather than waiting for points to accumulate.
Dis-Chem has enabled this through our Better Rewards partnership with Capitec, where boosters are applied instantly by paying with a Capitec card at point of sale.
In what ways can seamless payments directly improve customer loyalty and repeat purchase behavior?
Loyalty programmes are seen as a lifeline to many South Africans, with the cost of living rising and stubborn inflation, extra value passed back to customers goes a very long way.
Ensuring the customer experience in our stores and online is seamless and frictionless at every step of the customer journey increases customer advocacy and encourages customers to return.
Customers get an instant 10% discount on top of the promotional price on over 140 of South Africa’s most loved brands just for being part of the programme.
With the opportunity to build on more discounts by engaging with the full Dis-Chem ecosystem, an additional 5% is added for engaging with the pharmacy, a further 5% for using a Capitec card to pay and a potential to increase your base discount if you sign up for one of our healthcare financial services products.
How important is real-time data in understanding customer behavior and designing loyalty experiences that feel immediate and relevant?
It is very important to start with real customer data and insights when designing any customer facing programme. Realtime data is essential because it enables Dis-Chem to understand and respond to customer behavior as it happens, not weeks later.
In a price-sensitive market like South Africa, spending patterns shift rapidly with payday cycles, inflation shocks, and promotions. Real time signals allow us to deliver contextual offers, timely nudges, and personalised communication to the right customer at the right time.
How do you see AI and predictive analytics improving loyalty personalisation over the next few years?
AI and predictive analytics will shift personalisation from broad segmentation to individualised intelligent experiences. This will make sure that communication in real time is fit for purpose.
Moving to a world where AI assists with determining the next best action for each customer in real time whether it is a discount, a piece of healthcare content or a script replenishment reminder.
The goal at the end of the day is to ensure we can deliver deeply relevant experiences to our customers that enable their health journeys.
With shoppers moving between in-store, online, and mobile channels, how can retailers build a loyalty ecosystem that feels consistent and connected everywhere?
I often speak about the “phygital” world, that space where physical and digital meet to create seamless, omnichannel experiences. Loyalty programmes need to ensure all journeys work effortlessly in both environments. It is important to build a connected ecosystem, that represents a unified customer identity across all touchpoints.
How can retailers use loyalty data to deliver value beyond discounts—through convenience, exclusivity, or personalised experiences?
Dis-Chem is currently pivoting from being a traditional pharmacy retailer to an integrated healthcare provider which makes the data strategy even more important. This shift enables better understanding of customers to support them with their healthcare needs.
Through the ecosystem, Dis-Chem can support customers to improve their health, with an integration between our front shop, pharmacy, clinic and healthcare financial services.
Data enables personalised guidance from health content to product recommendations which helps customers feel cared for and not just rewarded. These non-monetary benefits build emotional loyalty and long-term trust.
As loyalty increasingly becomes ecosystem-driven, how are fintech–retail partnerships unlocking more value for customers and businesses?
Fintech–retail partnerships unlock value by combining the scale and digital reach of banks with the retail footprint and category expertise of merchants.
For customers, this means they can receive stackable value simply by using their bank card at a partnering retailer. For retailers, these partnerships drive acquisition and improved customer retention.
How are South African consumers’ expectations around rewards, value, and recognition changing in the current economic climate?
South African consumers, faced with economic pressure, now expect loyalty programmes to deliver immediate, meaningful value rather than distant, points-based rewards.
They prioritise savings that help with everyday essentials and appreciate clear, transparent benefits that show up directly on their till slip. At the same time, customers expect brands to respect their time, remove friction, and recognize them as individuals.
What does the next generation of loyalty in South Africa look like — more personalised, more gamified, or more integrated with payments?
The next generation of loyalty in South Africa will be a combination of personalisation, payments integration, and light-touch gamification, with each playing a distinct role.
With loyalty being seen as the new value economy where rewards move as seamlessly as money, payments integration will become the foundation, ensuring rewards trigger instantly and universally.
As reward programmes evolve, personalisation driven by data and AI will become the main differentiator, enabling highly relevant offers and experiences. Gamification will provide ongoing engagement and motivation, but it will succeed only when grounded in real, tangible value passed on to customers rather than gimmicks.
If you had to pick one technology that will have the biggest impact on loyalty in SA, what would it be and why?
Real-time Artificial Intelligence (AI) personalisation will shift static and generic loyalty programmes to become more intelligent and real time.
This would allow instant, intelligent and individualized loyalty propositions to be sent to customers that are tailored to their needs, recommends the next best action and enables a much smarter partner ecosystem.
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