Market Trends of Loyalty Management Industry
B2C to be the Largest Solution Segment
- B2C stands for business to consumer and is defined as selling products directly to consumers. B2C loyalty programs offer an effective way to engage, enhance, reward, and retain customers as well as grow a large customer base.
- Loyalty management empowers B2C organizations in any industry to build stronger customer relationships through connected, experiential loyalty programs. Due to businesses' growing emphasis on customer-centric solutions, the need for loyalty management has rapidly increased over the past few years.
- Furthermore, businesses in the B2C sector focus on designing a unique program that fits the business needs, engages customers with meaningful experiences, and gathers program insights to help businesses drive value for the organization. Additionally, business-to-consumer markets work more on emotions. Consumers are more interested in the product's benefits and want the marketers to tell how their product or services will help them derive benefits personally.
- The growing penetration of smartphones worldwide led B2C market players to offer rewards systems on smartphones. Additionally, to engage consumers, more businesses need to incorporate all functions, from document uploads to redeeming rewards, which should be intuitive and stable and be available on mobile. This has led to the adoption of loyalty management solutions in the B2C sector.
- Additionally, the growing penetration of smartphones in B2C loyalty programs is forcing market vendors to develop more enhanced smartphone-oriented programs. Smartphone-oriented loyalty programs will help B2C companies collect data, provide a smoother customer journey, and engage and retain consumers. Furthermore, a smartphone-based loyalty management platform will enable the consumer to access their order history, points, special offers, rewards, and loyalty cards digitally at any place and at any time.
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Asia Pacific to Register Major Growth
- According to the Bank of Thailand, in 2022, the volume of internet banking transactions in Thailand amounted to around 603.8 million transactions, an increase compared to the previous year. In 2022, the volume of mobile banking transactions in Thailand amounted to around 22.8 billion, a distinctive increase compared to the previous year. Such a huge number of transactions would push financial institutions to deploy new loyalty programs to retain their customers, which proportionately would drive the demand for the market studied in the region.
- The various Indonesian industries are collaborating with loyalty management tool firms to retain customers and capture the market share. For instance, in December 2022, GetPlus, Global Poin Indonesia's B2C multi-brand loyalty and customer management program, collaborated with Antavo Enterprise Loyalty Cloud to improve its one-stop rewards solution and align with modern customer needs. GetPlus is a mobile app-based union loyalty program in Indonesia that is free for customers. GetPlus users can earn and redeem GetPlus Points at various in-store and online partners, including eCommerce stores, grocery stores apparel brands, travel partners, entertainment brands, food & beverage establishments, and more.
- The loyalty and rewards programs industry is a growing market across Malaysia. The demand for loyalty programs has surged significantly among consumers throughout the region; as a result of this increasing demand among Malaysian consumers, loyalty and rewards programs are being adopted by several brands across various industry verticals, which are using it as a tool for consumer retention and further developing a sustainable relationship with customers in the country.
- China is one of the prominent regions in the Asia-Pacific region. The country is also the hub of many unicorn firms, with the rise in the startups and online shoppers in the region driving local and international firms to come up with new loyalty programs so that they can increase their market share in the region and expand their business in the other parts of the world.
- The popularity of loyalty programs among consumers is being used by everyone from telecom companies to e-commerce sites to convenience stores in Japan to propel their growth and additional revenue. Notably, hospitality groups are forming strategic alliances with suppliers of loyalty programs to have immediate access to members, enabling them to grow their market share in the nation.
- Other major Asian-Pacific countries with a huge scope for implementing loyalty management in various business sectors include South Korea, Sri Lanka, the Philippines, and New Zealand. Like many other countries in the region, membership cards and mobile applications are the most used means of loyalty management.
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