Dis-Chem is moving away from broad mass-marketing segments and aims to service customers on an individual basis through the use of data and technology. This is part of the group’s broader push to grow beyond its traditional pharmacy operations to become an integrated healthcare business and provide customers with cheaper and easier access to healthcare services. In October, the pharmacy chain operator’s traditional loyalty model was replaced with a data-led system that integrates rewards across retail purchases, clinic visits and financial services.
Thabiso Msimanga, head of customer at Dis-Chem’s X, Bigly Labs, said the Better Rewards programme was developed after extensive research and “mystery shopping” to understand customer problems and needs, replacing Dis-Chem’s 23-year-old loyalty programme. X, Bigly Labs was launched in 2025 and is the innovation unit within Dis-Chem tasked with developing new lines of business and products. Msimanga told Business Day the lab is experimenting with using data and AI to move away from traditional customer segmentation, which groups people by age, race or LSM, towards treating each individual as their own segment.
He says the old segmentation methodology is no longer sufficient. In the current retail environment, technology and data allow Dis-Chem to focus on the unique needs, behaviours and life stages of a single person. For instance, a customer is not just “a parent” but an individual who may simultaneously need baby products, beauty items and sports supplements.
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“Gone are the days when we could segment customers into a single group and create generic marketing campaigns through mass-marketing techniques.” “Successful companies must be able to treat each customer as a unique individual,” he said. Dis-Chem uses WhatsApp for personalised communication that considers a customer’s varied interests beyond just their recent purchases. Like rival healthcare player Discovery, Dis-Chem has tied a large part of its current personalisation efforts to health behaviour.
Its deal with Capitec is a good illustration of this strategy. Through the partnership, Dis-Chem plugs into Capitec’s more than 25-million customer base via the bank’s Live Better platform, offering additional cashback rewards and tailored health benefits. Capitec clients will be able to earn enhanced rewards on Dis-Chem purchases and access offers linked to health-related actions such as clinic consultations or chronic medication refills.
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