Global Loyalty Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Global Loyalty Management Market is Segmented by Solution (B2C, B2B, Corporate), by Deployment (On-premise, On-demand), by Industry Vertical (BFSI, Consumer Goods & Retail, Healthcare, IT & Telecom, Travel & Hospitality, Manufacturing), and by Geography.

Loyalty Management Industry Overview

Loyalty Management Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 16.88 %

Major Players

Loyalty Management Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Loyalty Management Market Analysis

The global loyalty management market was valued at USD 8.75 billion in 2021, and it is expected to grow at a CAGR of 16.88% during the forecast period (2022-2027). A loyalty management system is a marketing automation software used to develop, oversee, and evaluate the effectiveness of loyalty programs. Solutions for loyalty programs can be integrated into the company CRM system as a built-in feature or as a separate platform. The information required to operate customized loyalty programs is retrieved from data sources through API, and the chosen front-end receives the information from the loyalty software.

  • Customer data drive loyalty programs. Understanding the spending habits and behaviors of the outreach is critical to understanding how to retain consumers. Personalization fosters a closer relationship or uses data to tailor offers, communications, and rewards to specific customers. The primary factor in the success of a loyalty program is providing a positive customer experience and making the program simple to use, engage in, and enjoy.
  • A customer-centric organization expands by increasing the wallet share within its customer segment and entering new markets to target similar customers. As loyalty management revolves around pleasing/rewarding an organization’s repeat customers, developing customer-centric strategies has become necessary to keep the customer retention rate high, thus driving the demand for loyalty management programs.
  • The intensity of the competition between firms has increased the cost of customer acquisition. Gaining a customer is neither free nor is it cheap. It is a necessary expense that adds to the total cost while running a business and may lead to overspending.
  • Lack of awareness about loyalty programs can hinder the growth of the loyalty management market. It has been observed that many members of loyalty programs lack an understanding of their point balance and the absence of a redemption goal.
  • The COVID-19 pandemic significantly increased the demand for e-commerce, especially online groceries, due to changing consumer consumption patterns and rapid adoption of omnichannel distribution models, which are expected to create customer-centric solutions. In the post-COVID era, businesses must acknowledge that online presence is required to remain relevant. Retail loyalty programs are distinctive as they need simultaneous management of technology, strategy, and corresponding hardware to obtain a comprehensive picture of customers.

Loyalty Management Industry Segments

Loyalty management is a marketing approach based on strategic management, in which a company focuses on growing and retaining existing customers through incentives. These are web-based tools deployed for managing loyalty programs across key end-user segments and for efficient identification, implementation, and tracking of loyalty programs. Businesses can use it to identify (potential) repeat customers and encourage them to buy more by giving them gift cards, coupons, and other incentives.

The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study also tracks the revenue accrued from the various loyalty management solutions used across end-user industries. In addition, the study provides the loyalty management market trends, along with key vendor profiles globally. The study further analyses the overall impact of COVID-19 on the ecosystem.

By Solution
B2C
B2B
Corporate
By Industry Vertical
BFSI
Consumer Goods and Retail
Healthcare
IT and Telecom
Travel and Hospitality
Manufacturing
Other Industry Verticals
By Deployment
On-premise
On-demand
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Nigeria
Rest of Middle-East and Africa

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Loyalty Management Market Trends

This section covers the major market trends shaping the Loyalty Management Market according to our research experts:

Consumer Goods and Retail Segment to Hold Significant Market Share

  • The consumer goods and retail segment was valued at USD 2.11 billion in 2021. This segment is witnessing growth due to increasing competition and marketing among consumer goods and retailers. Moreover, digitalization and innovations in the Loyalty programs are also making them easier to use and increasing their spread among smaller retailers.
  • Over the years, retailers implemented various strategies to increase consumer loyalty in their operations. These include several loyalty programs, discounts, and incentive opportunities. A change in the use of old approaches has been brought about by digital disruption and new influencing techniques. Retailers can now more easily collect consumer data and create individualized strategies for enticing customers to make more purchases.
  • The COVID-19 pandemic impacted the retail industry in several ways due to lockdowns in numerous countries and the possibility of contamination in physical stores. Once lockdowns were lifted and stores reopened, there was an excessive reliance on internet channels for purchasing. This shift in consumer consumption patterns, aided by the accessibility of affordable and dependable internet, made it difficult for companies suffering from lost sales to remain relevant to their devoted fans during this time.
  • Retailers and companies that produce consumer goods face numerous challenges. Therefore, to be in charge, they prioritize going digital first. With a digitally focused loyalty program, brands can start collecting customer data that they can utilize to deliver individualized experiences when it matters. By engaging with customers at key points, consumer product companies can generate significant revenue, cross-sell, and upsell possibilities.
  • Consumer packaged goods (CPG) companies historically found it difficult to build direct relationships with their consumers and were forced to piece together inconsistent data from various retail partners to understand consumer preferences, lifetime value, and marketing ROI. CPGs forge close bonds with their customers through loyalty programs, which also help them identify previously anonymous customers.
Loyalty Management Market: Retail and E-commerce Sales, In Billion USD, United States, Q2 2021 - Q2 2022

Asia-Pacific is Expected to be the Fastest Growing Market

  • The rise in loyalty programs by the different regional firms will drive the loyalty management platform so that firms can track loyalty programs. For instance, in September 2021, The New Value, New Experience, New Pleasure—China Eastern Airlines New Loyalty Program was offered by the airline. A brand-new membership upgrade, a brand-new points accumulation system, a brand-new point exchange method, a brand-new product series, and a brand-new service platform are among the five highlights of the "Eastern Miles" membership system, which was just published worldwide. The core of the new membership system is the framework transition from a "mileage-based" to a "revenue-based" points accumulation system. The company is committed to building a brand-new customer-centered service platform and enabling more cross-border and cross-industry partners to participate in the aviation value chain.
  • According to the China Internet Network Information Centre, in China, 842 million people had made online purchases as of December 2021, an increase of 38% of online shoppers from 2018. Such a rise in online purchases will allow e-commerce platforms and other brands to provide loyalty programs to increase their profit margin. This will lead to the deployment of loyalty management platform tools so that online retailers can design and implement loyalty programs.
  • The increase in loyalty programs by the different regional firms is expected to drive the loyalty management platform so that firms can track loyalty programs. For instance, in June 2022, Japan rewards those who live a more environmentally friendly lifestyle by using ridesharing services, investing in energy-efficient household appliances, or avoiding single-use plastics. The program is a part of a broad government effort to assist several businesses, including e-commerce behemoth Rakuten Group Inc. and mall operator Aeon Mall Co., who are extending loyalty point programs to encourage customers to make greener purchasing decisions. The extensive program is Japan's most recent attempt to convince people that they must adjust their habits to combat climate change.
  • Global rewards platforms are extending their presence in Japan as the country's market for loyalty programs grows year over year to increase their market share globally. For instance, in October 2021, one of the most popular rewards platforms globally, Miles, revealed that it is expanding its reach abroad by introducing its service in Japan. Notably, the network has grown quickly and now provides users with 500 customized rewards from 360 brands. The introduction of Miles in Japan is an important step in that direction.
  • Due to the demand for loyalty programs in the region, many startups are entering the loyalty management platform market to provide services to different industries. For instance, in February 2022, Giift and Apis Partners invested USD 30 million in loyalty solutions provider Xoxoday, an India-based company. The partnership will allow Giift and Xoxoday to expand their service portfolios and accelerate their global expansion, and the investment comprises both primary and secondary capital components.
Loyalty Management Market - Growth Rate by Region (2022 - 2027)

Loyalty Management Market Competitor Analysis

The global loyalty management market is very competitive in nature. The market is fragmented due to the presence of various small and large players. All the major players account for a large share of the market and are focusing on expanding the consumer base globally. Some of the significant players in the market are IBM Corporation, Oracle Corporation, Comarch SA, SAP SE, Epsilon Data Management LLC, Fidelity National Information Services Inc., TIBCO Software, and many more. The companies are increasing the market share by forming multiple partnerships and introducing new solutions to earn a competitive edge during the forecast period.

  • April 2022 - Universal Drugstore chose Comarch SA to launch the new wellness rewards loyalty program. Universal Drugstore partnered with Comarch on Loyalty Program. The wellness rewards loyalty program allows members to earn points with every purchase, which can be used to discount future orders march loyalty program is a go-to choice due to its extensive experience developing loyalty-specific software and services.
  • January 2022 - SAP SE and Dunnhumby formed a strategic partnership. The partnership will help retailers make faster, customer-led decisions and deliver a more personalized shopper experience at home and in-store. Retailers can benefit from this by better knowing customer insights and turning them into clear actions to simplify and elevate everyday business processes and look ahead to build better connections.

Loyalty Management Market Top Players

  1. Kognitiv Corporation

  2. IBM Corporation

  3. Oracle Corporation

  4. Comarch SA

  5. SAP SE

*Disclaimer: Major Players sorted in no particular order

Loyalty Management Market Concentration

Loyalty Management Market Recent Developments

  • July 2022 - Oracle Cloud Infrastructure is known for consistent pricing, unmatched speed, security, and scalability. The oracle cloud infrastructure is a next-generation cloud designed to run any application faster and more securely, for less. For instance, in July 2022, Tranxactor chose Oracle Cloud Infrastructure (OCI) with Enterprise Database Service to allow the company to provide brands with immersive customer engagement and loyalty programs.
  • April 2022 - Comarch upgraded the Loyalty marketing cloud. The loyalty marketing cloud is an end-to-end platform for building and managing immersive loyalty programs & marketing campaigns. In the older version of the loyalty marketing cloud release, the company released a back-office rankings functionality to keep members excited about the ongoing activities. In the latest update of the loyalty marketing cloud mobile app version, the members can easily check their individual scores and position compared to others.

Loyalty Management Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Value Chain Analysis

    4. 4.4 Impact of COVID-19 on the Loyalty Management Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Implementation of a Customer-Centric Approach Across Businesses

      2. 5.1.2 Intensified Competition Increasing the Cost of Customer Acquisition

      3. 5.1.3 Rewarding Schemes Offered by Organizations

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of Knowledge About Loyalty Program Benefits

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Solution

      1. 6.1.1 B2C

      2. 6.1.2 B2B

      3. 6.1.3 Corporate

    2. 6.2 By Industry Vertical

      1. 6.2.1 BFSI

      2. 6.2.2 Consumer Goods and Retail

      3. 6.2.3 Healthcare

      4. 6.2.4 IT and Telecom

      5. 6.2.5 Travel and Hospitality

      6. 6.2.6 Manufacturing

      7. 6.2.7 Other Industry Verticals

    3. 6.3 By Deployment

      1. 6.3.1 On-premise

      2. 6.3.2 On-demand

    4. 6.4 By Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 Germany

        2. 6.4.2.2 United Kingdom

        3. 6.4.2.3 France

        4. 6.4.2.4 Italy

        5. 6.4.2.5 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 Japan

        3. 6.4.3.3 India

        4. 6.4.3.4 Australia

        5. 6.4.3.5 Rest of Asia-Pacific

      4. 6.4.4 Latin America

        1. 6.4.4.1 Brazil

        2. 6.4.4.2 Argentina

        3. 6.4.4.3 Mexico

        4. 6.4.4.4 Rest of Latin America

      5. 6.4.5 Middle-East and Africa

        1. 6.4.5.1 United Arab Emirates

        2. 6.4.5.2 Saudi Arabia

        3. 6.4.5.3 South Africa

        4. 6.4.5.4 Nigeria

        5. 6.4.5.5 Rest of Middle-East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Kognitiv Corporation

      2. 7.1.2 IBM Corporation

      3. 7.1.3 Oracle Corporation

      4. 7.1.4 Comarch SA

      5. 7.1.5 SAP SE

      6. 7.1.6 Epsilon Data Management LLC

      7. 7.1.7 Fidelity National Information Services Inc.

      8. 7.1.8 TIBCO Software Inc.

      9. 7.1.9 Maritz Motivation Inc.

      10. 7.1.10 Kobie Marketing Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Loyalty Management Market Research FAQs

The Global Loyalty Management Market is studied from 2018 - 2028.

The Global Loyalty Management Market is growing at a CAGR of 16.88% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Kognitiv Corporation, IBM Corporation, Oracle Corporation, Comarch SA, SAP SE are the major companies operating in Global Loyalty Management Market.

Global Loyalty Management Industry Reports

In-depth industry statistics and market share insights of the Global Loyalty Management sector for 2020, 2021, and 2022. The Global Loyalty Management research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Global Loyalty Management report PDF.

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