They’re misaligned with how customers live and shop and pay, particularly in mobile-first markets like South Africa and the broader African region.

A region that is anticipating growth of 18.1% over and that craves the ingenuity and value brought by mobile-driven rewards, gamification incentives, cashbacks and deeper financial inclusion.

Loyalty remains a key driver of customer engagement, but the traditional machinery that drives it no longer makes sense.

Retailers are often left carrying the weight of contingent liabilities for points that may never be redeemed, while customers are still trying to manage physical cards.

Traditional programmes are often fragmented, and many over-emphasise basic discounts and points while not really leveraging the data they gain to deliver true customer personalisation journeys.

The result is poor differentiation and engagement, even when membership numbers are high, and this dissatisfaction has seen a gentle side shuffle away from plastic cards and complicated systems towards an ecosystem-based approach to loyalty.

Partners, cross-brand earning, communities and interchangeable rewards across platforms and companies are taking their place. And these capabilities are being largely driven by an old technology on the block – blockchain.

Web3 and blockchain have been around for a while and are changing the physics of loyalty in ways that simplify the process for consumers and retailers alike. Instead of points sitting dormant and creating long-term liabilities for retailers, their value becomes tokenised.

These points can be instantly transferred, redeemed and earned and work at the point of customer decision-making. It’s loyalty at the edge.

Web3 allows retailers to apply instant, per-consumer-centric rewards at the point of transaction on such a granular level that two customers standing at neighbouring tills can receive personalised offers in real time based on who they are and how they shop. Blockchain handles the trust.

There are no next-day reconciliations or batching or waiting to see if loyalty data matches what the till saw.

Instead, payments and settlements are one and the same and take place at the exact moment of purchase, even when multiple parties have to be paid out at the same time. In traditional systems that level of coordination is impossible.

This real-time flow also removes the financial drag that comes with loyalty programmes. Contingent liabilities clog up accounting systems and create long-term risk, which is frustrating, especially when retailers can see the potential value of a smooth loyalty programme in building customer loyalty and retention. Web3 and blockchain remove this structural weight by building digital rewards that behave like currency and that can be settled, issued and redeemed instantly.

Adding even more value is the fact that these technologies are redesigning the economics of payments. Card transactions cost money in merchant fees, but imagine if retailers could avoid those fees? Web3 wallet payments bypass old cost architectures which means money saved can be reinvested back into consumer rewards or returns on investment.

Loyalty then stops being a cost centre and becomes a proper engine for growth, one that’s funded by the infrastructure that enables it.

Another huge benefit for retailers is that all the data and insights are sitting in a digital repository ready to be interpreted into personalised consumer journeys that deliver value. Imagine not serving a customer baby food adverts long after their child has finished school?

Or not targeting consumers with products they no longer buy? Web3 gives retailers the ability to sit inside the data so the consumer’s advertising journey is matched by their life one.

This value stretches beyond corporate retail and into spaza shops, taxi associations and informal traders who can now capitalise on loyalty programmes because blockchain levels the playing field. The same rails that handle enterprise customers can hold micro-merchants as well.

This is the new era of loyalty, which is fast and fluid and interoperable at scale. Blockchain and web3 are rewriting how retailers talk to consumers and finally getting loyalty to move at the same speed that customers expect.

The post Can Blockchain Finally Fix Customer Loyalty? appeared first on Tech | Business | Economy.

• Black Friday to Cyber Monday remains the most powerful retail window of the year
• As a share of total holiday transactions, total transactions from Black Friday weekend surged 30.4%, equating to the few days making up 10.3% of the total holiday period transactions
• e-Commerce still leads the charge
• In-store commerce is making a comeback. In-store revenue as a proportion of total revenue saw a 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue
• Omnichannel and data-led strategies set leaders apart

As the country waits with bated breath to see what the cabinet settles on for a national budget, which will have a big impact on the economic mood of the country, consumer confidence and investor sentiment, retailers are already planning for a bumper 2025 Black Friday and holiday season.

Black Friday, by its very nature, generates hype in the media and among retailers. However, a new index proves it is not hollow hype.

South Africa’s first formal Black Friday Index reveals that Black Friday to Cyber Monday remains the most powerful retail window of the year, according to World Wide Worx and Ecentric Payment Systems.

The index shows unequivocally that compared to the full holiday period from the beginning of November to Christmas Eve, Black Friday to Cyber Monday remains the clear peak shopping window, with significantly higher transaction and revenue growth than the rest of the season.

The Ecentric 2024 Black Friday Index, which was conducted in a partnership between Ecentric Payment Solutions and World Wide Worx, is based on analysis of data from retail transactions flowing through the Ecentric payment gateway. Payment data analysed excludes that of the grocery sector. Ecentric processes 20% of South Africa’s card transactions and serves as a trusted payments partner to 65% of JSE-listed retailers – serving their in-store, online, mobile and omnichannel payments requirements.

The index was compiled by independent technology research house World Wide Worx. It measures transaction volume and value generated from Black Friday to Cyber Monday, as a proportion of total holiday retail.

As a share of total holiday sales, online transactions for the Black Friday to Cyber Monday period, as a proportion of total transactions surged by 30.4%, rising from 7.9% to 10.3% of total holiday sales. Online revenue as a proportion climbed by 23.8%, increasing from 10.1% to 12.5% of total holiday revenue. In-store transactions as a proportion of total transactions grew by 15.4%, rising from 9.1% to 10.5% of holiday sales. In-store revenue as a proportion of total revenue saw a 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue.

Rory Bosman, Ecentric’s chief sales & marketing officer says the findings are good news for retailers as they provide telling insights that can prepare retailers to make the most of the critical retail period.

“The index makes it clear that the Black Friday weekend stands out from the full holiday shopping period, which runs from the beginning of November to Christmas Eve, in both sales volume and growth. The latest data confirms that retailers who capitalised on this peak moment saw the biggest gains, with online and in-store revenue outperforming the rest of the holiday season,” he says.

Of particular interest, is how dramatically the holiday shopping period is shifting. While in 2023 the Black Friday to Cyber Monday period reflected a small upward bump in transaction volume, the biggest shopping days came a week later.

“This is different in 2024,” says Bosman. “The Black Friday to Cyber Monday period saw a massive leap in transaction volume, compared to a slightly above-average level a week later.”

Key insights to capitalise on Black Friday in 2025 and beyond 

Bosman says there are a number of important lessons for retailers. The first is that e-commerce is more important than ever.

“Retailers seeking to make the most of Black Friday need to prioritise seamless digital experiences and mobile optimisation and exclusive deals,” he says.

Importantly, the 2024 Black Friday index proved that in-store retail is enjoying a strong revival. Bosman says that the retailers who benefit the most will be those that invest in immersive experiences such as interactive shopping, festive atmospheres and high-value promotions to attract shoppers.

He says consumers demonstrated they respond well to positive in-store experiences. Technology such as augmented and virtual reality could play a pivotal role here.

Omnichannel integration is non-negotiable, he says.

“The insights gained from the index tell us that online and in-store integration must be seamless, from inventory to promotions. The retailers that do the best are those that blend online and in-store efforts with consistent messaging, and, importantly, seamless experiences.”

Bosman says that data-driven personalisation holds immense potential for retailers seeking to set themselves apart from their competition. “AI-powered recommendations and targeted deals will set leaders apart. It is vital, in 2025 and beyond, that retailers use data for targeted promotions and flexible fulfillment options.”

Get all the insights by downloading the full report. 

The post Black Friday is South Africa’s Single-biggest Retail Bonanza of Holiday Period appeared first on Tech | Business | Economy.

The Black Friday sales peaked at a 112% increase on the Tuesday, with the lowest increase being a 32% year-on-year growth on Cyber Monday, according to data from the Ecentric Black Friday Dashboard, a real-time tracking tool belonging to Ecentric Payment Systems.

The good news comes at the same time as Stats SA’s surprising announcement that the South African economy shrank by 0,3% in the third quarter.

Even despite concern in some sectors, household consumption, which is often seen as a pillar of the economy, only grew by 0.5%.

Seen against this reality, measuring actual real-time Black Friday retail activity paints a more optimistic picture heading into the festive period.

Ecentric processes 20% of South Africa’s card transactions and serves as a trusted payments partner to 65% of the JSE listed retailers.

According to Rory Bosman, Ecentric’s executive for Sales and Marketing, this gives them real-time visibility and data on transaction trends.

“We track transaction volumes both in-store and online, transaction values, including the average basket size, and trends and changes in metrics in real time.”

Commenting on the large uptick in sales volumes, Bosman says:

“In spite of relatively flat economic conditions this year, consumers are evidently planning their bigger purchases around the special discounts they can find during the Black Friday and Cyber Monday period, which as we all know, has now expanded to a week-long event rather than just a single day. The average basket value, across all retailers, started at just under R450 and increased to just under R500 by the end of the week.”

By managing all the payments for the retailers it serves both in-store and online, Ecentric found that Black Friday itself had the highest volume of transactions, averaging 2185 transactions a minute, with the highest per-second volume of transactions hitting 133. While Sunday had the lowest volume of transactions, it still averaged 1063 every minute.

Bosman says an interesting development this year is the move towards online purchases, marking a shift in South African buyers’ sentiment towards ecommerce compared to in-store shopping.

“Firstly, the main take home message, which is good for retailers, is that there has been a significant increase in transaction volumes year-over-year. Because the average basket value increased over the course of the week, we can deduce that consumers are shopping around to find the best deals before making their purchases,” says Bosman.

“Secondly, there’s been a marked increase in online purchases versus in-store, especially for big ticket items. The data suggests that people go into physical stores to look for what they want, and to make sure it is the right product, and then they are quite happy to make the actual purchase online based on where they get the best price.”

The post South Africa Records 112% Increase in Consumer Spend this Black Friday appeared first on Tech | Business | Economy.