APAC Loyalty Management Market Size

APAC Loyalty Management Market Analysis

The APAC Loyalty Management Market size is estimated at USD 3.26 billion in 2024, and is expected to reach USD 8.46 billion by 2029, growing at a CAGR of 21.06% during the forecast period (2024-2029).

Loyalty management solutions are being used by many companies in many different industries. The main goal of these programs is to keep customers and build long-term relationships with them.

• Increasing customer retention boosts profit margins and provides a stable income source. While implementing a loyalty program is an investment, customer retention strategies are less expensive when compared to attracting new customers. Adding new customers can be 25% more expensive than retaining current ones. Thus, having a loyalty program could be the biggest revenue generator for a company and lower user acquisition costs.
• In Southeast Asia, loyalty programs are becoming more popular because more people are using social media, more people are getting online, and the e-commerce industry is growing.Malaysia, the Philippines, Singapore, and Indonesia are the next biggest countries that drive, after Vietnam and Thailand.
• People thought that the change in consumer attitudes would last longer than COVID-19.As a result, many businesses were expected to invest heavily in loyalty management programs to retain new customers and reclaim lost ones. As a result, the program's demand was expected to surge following the pandemic.
• The loyalty management platform, which lets organizations keep track of loyalty programs, is expected to be driven by the growth of loyalty programs by different regional companies.For instance, in June last year, Japan compensated consumers for using ridesharing services, investing in energy-efficient household equipment, or avoiding single-use plastics. The program is part of a larger government push to aid many firms, including e-commerce juggernaut Rakuten Group Inc. and mall operator Aeon Mall Co., that are extending loyalty point systems to encourage customers to make more environmentally friendly shopping decisions. The massive initiative is Japan's latest attempt to persuade people to modify their habits to tackle climate change.
• But a big problem for the growth of the APAC loyalty management market is that not enough people know about it. Customers need to be made aware of the loyalty benefits provided by an organization. Lack of awareness could be a major challenge restricting the widespread adoption of loyalty management solutions.