Better Rewards: Dis-Chem launching new loyalty programme 'with much deeper value'

There are big changes happening at the Dis-Chem Group, including a change in leadership as Saul Saltzman - son of founders Ivan and Lynette Saltzman - announced he'll be stepping down as Executive Director early next year.

In conversation with Stephen Grootes, Dis-Chem Pharmacies CEO Rui Morais also highlights how they are moving from a pharmacy retailer to an integrated healthcare provider.

At the centre of this evolution lies the way they're thinking about customer rewards, Morais says.

The retailer is set to launch its Better Rewards programme in the next few weeks.

Loyalty programmes in general have become very important to retailers, he concurs.

And for Dis-Chem, not only isthis a mechanism to provide value, but a mechanism to encourage customers to participate and invest in their healthcare by providing real, tangible value at the tills, Morales says.

He notes that the loyalty programme that existed gave 1.5% back to consumers - saying it did the job of creating loyalty together with their brand, 'but as the environment changes, you also need to evolve'.

"I think this new Better Rewards is much deeper in value. The base discount starts at 10% off on top of existing promotional prices. It's always on every single time you shop, and it can flex in terms of how you engage with us as an ecosystem all the way up to 100%."

It grew from their experience with extraRewards (available to Dis-Chem Life or Health policy holders), he explains, and how that programme led to a change in behaviour, with customers spending more and shopping more at their outlets.

"The question we asked was, if we're seeing this fundamental change in consumer behaviour, how do we scale that and apply it to our 7-10 million customers?"

To listen to Rui Morais in conversation with Stephen Grootes on 702's The Money Show, click on the audio link below: