By Len Lubbe, CEO at LoyaltyPlus
Most loyalty programmes are built once and then applied across the board. While this may seem logical from an efficiency perspective, what works in aviation does not carry into hospitality or retail. Yet many programmes are still built as if customer behaviour follows a single pattern.
Loyalty only works when it reflects how value is created in that specific industry.
Practical examples
Take aviation. Programmes like those used by global carriers have always been built around infrequent but high-value transactions. A single long-haul flight carries more weight than dozens of smaller interactions in other sectors. The loyalty model reflects that. Points accumulate slowly, status is earned over time, and the real value often sits in tiered benefits rather than immediate rewards.
Hospitality operates differently. In the South African context, hotel groups such as Southern Sun and Protea Hotels focus on repeat stays, direct bookings, and guest experience. Loyalty here is less about long accumulation cycles and more about consistency. A returning guest expects recognition, ease of booking, and tangible value in the short term. The programme has to support that.
Retail shifts the model again. High-frequency, low-margin environments require immediacy. Programmes like Checkers Xtra Savings, Pick ‘n Pay Smart Shopper, or Woolworths MyDifference succeed because they are embedded into everyday spend. Customers see value quickly. Rewards are accessible. The system encourages repeat visits, not long-term accumulation alone.
Logistics is often overlooked in these discussions, but it presents a different kind of loyalty altogether. In a freight environment, loyalty is tied to reliability, service consistency, and the strength of the relationship rather than points in the traditional sense. A frequent freighter programme needs to recognise volume, reliability, and long-term commitment. It is less visible to the consumer, but no less critical to growth.
Turning inwards
Then there is employee loyalty, which operates on an entirely different basis. Recognition programmes inside organisations are not about spend at all. They are about behaviour, performance, and retention. South African businesses are increasingly using structured benefits and reward systems to retain skilled staff in a competitive labour market. The mechanics may resemble customer loyalty, but the intent is fundamentally different.
These differences matter because they determine how value is perceived.
Customisation critical
A single, standardised loyalty model cannot accommodate all of these behaviours without losing effectiveness. When programmes are forced into the wrong structure, they either become too slow to engage or too shallow to retain interest. In both cases, they fail quietly. Activity continues, but growth does not follow.
At LoyaltyPlus, we see this play out across every implementation. A frequent flyer model is not just a naming convention. It is built around long cycles, tier progression, and partner ecosystems. A frequent shopper model is built around immediacy, frequency, and accessible rewards. A frequent freighter model is structured around volume, consistency, and commercial relationships. Employee benefits programmes focus on recognition, motivation, and retention.
Each of these requires a different engine. Trying to force them into a single structure creates friction. Allowing them to operate within a tailored framework creates alignment.
Adapting to requirements
Technology plays a role here, but not in the way it is often presented. The challenge is not building a more complex system. It is building one that can adapt without losing control. Governance, data visibility, and secure integration matter more than feature depth. A system that reflects the business’s operating model will always outperform one that simply adds more mechanics.
This is particularly relevant in South Africa, where industries operate under different economic pressures. Retailers operate with tight margins and intense competition. Hospitality businesses balance occupancy with experience. Logistics companies operate in environments where reliability is non-negotiable. Employers compete for talent in a constrained skills market.
Loyalty, in each of these cases, is a response to a specific set of conditions. It cannot be abstracted into a universal template.
What we are seeing is a gradual shift toward programmes built with context in mind. Not just what customers earn, but how and why they engage. Not just how rewards are structured, but how they align with the underlying business.
Loyalty does not fail because the concept is flawed. It fails when it is applied without context. When it is aligned with how an industry actually operates, it becomes something else entirely. It becomes a system that supports growth, reinforces behaviour, and strengthens relationships over time.
That is where loyalty starts to work as intended.