How South Africans are maximising rewards while cutting back on spending
Consumers might be cutting back but they are finding clever ways to make their money work harder through loyalty and rewards programmes
There’s a rewards card for almost every shop, but you need to be clever as to how you use them to get the maximum benefit.
I’m careful to plan my shopping trips so that I get everything done at once.
If I need groceries, a pair of socks, and to pop into the pharmacy, I’ll go to the mall that has all three.
What I don’t know is whether this strategy actually saves me money. Maybe I’d do better to drive around a bit and spend more on fuel but get better discounts.
A key part of how I shop is to fill up at a particular brand’s fuel station — especially the one just off the on-ramp, but only if I’m already going that way.
I worked out that it doesn’t make sense (or cents) to drive 3km there just to save 30c on each litre of diesel.
The reason I use that brand is because I can swipe another rewards card at the same time. The downside is that it locks me into one retailer.
It could well be a marketing gimmick — and so could many other “rewards” systems.
Still, I’m not alone in trying to make every rand stretch further.
According to NielsenIQ (NIQ) South Africa’s Consumer Outlook: Guide to 2026, half of South Africans are using loyalty and rewards programmes to manage their household budgets.
The annual report is described as a roadmap for growth in a fast-moving, unpredictable market where caution has become the default.
NIQ found that nearly two-thirds of South Africans expect their household situation to improve by the start of 2026.
But that optimism hides the reality that people have become numb to rising prices and a stagnant economy.
About two-fifths say their household is worse off than a year ago, up slightly from the previous survey, while a similar share feel better off.
The increased cost of living, an economic slowdown, and job insecurity are the main reasons people feel worse off.
“While inflation has abated and there are some green shoots in the economy, South African consumers are still spending cautiously,” said Zak Haeri, MD for NIQ in South Africa.
“Given that many households have cut spending to the bone and have low tolerance for more price increases, retailers and manufacturers will need to focus on growing volumes and market share.”
Food inflation still top of mind
South Africans remain particularly worried about rising food prices, followed by higher utility bills. Around half say they only have enough money to cover the basics.
That means more belt-tightening ahead.
Over the next year, people plan to spend less on takeaways, eating out, entertainment, home appliances, and even discretionary groceries like snacks, alcohol, and ready meals.
Beyond cutting back, shoppers are finding smarter ways to stretch what they have.
Many stock up when their preferred brands go on promotion, track the total cost of their baskets, stop buying non-essentials, or switch to cheaper brands.
Affordability has become the main factor driving purchase decisions, with about a third of consumers saying price is the biggest reason for choosing one brand over another.
Healthier options and brand trust follow behind.
Even in tough times, three-quarters of South Africans say trust is very important in what they buy.
That trust comes from quality and consistency, good customer service, and personal recommendations.
Is it a gimmick?
I can relate. One thing that does seem like a gimmick to me is the way most banks handle rewards – you only qualify once you reach a certain account level.
So, I end up paying more in bank fees just to get a bit of “free” money back, but only if I stick to all the Ts and Cs. I sat and did the math the other day. It’s not worth it.
I guess it’s like most things in life: weigh each card up and go with the best option.
Which is probably why I carry all of them.
NIQ’s research also shows that South Africans are shopping more deliberately than before.
Around half plan ahead before they shop, a similar share compare prices, and nearly two-thirds make sure they only buy what they’ll actually use to avoid waste.
Haeri said: “South African shoppers reward retailers and brands that deliver affordability, trust, personalisation, and convenience – with attractive loyalty and reward programmes as a key lever for building repeat business and driving larger basket sizes.
“Despite growing consumer caution, brands can win loyalty by building trust and offering value beyond price.
Capturing trips and baskets through sharper product assortment, innovation, loyalty points and private label offerings that stretch limited discretionary rands further will all prove to be winning strategies in the year to come.”
So, whether it’s fuel points, grocery rewards or bank cashbacks, the trick is knowing when the saving is real.
IOL Business