Loyalty Management Market Size, Share & Trends Analysis Report By Offering (Solution, Service), By Solution, By Services (Professional Services, Managed Services), By Operator, By Deployment, By Organization Size, By Vertical, And Segment Forecasts, 2024

Loyalty Management Market Size, Share & Trends Analysis Report By Offering (Solution, Service), By Solution, By Services (Professional Services, Managed Services), By Operator, By Deployment, By Organization Size, By Vertical, And Segment Forecasts, 2024 - 2030

Loyalty Management Market Growth & Trends

The global loyalty management market size is expected to reach USD 20.44 billion by 2030, growing at a CAGR of 9.2% from 2024 to 2030, according to the recent reports of Grand View Research, Inc. The loyalty management software helps view real-time data about how customers engage with the brand. Access to this information enables organizations to develop innovative and effective strategies fors improving loyalty programs and the brand. The software can also create individual profiles for each customer. In addition, based on customers’ behavior, organizations can analyze and understand customer engagement, subscription utilization, and usage frequency. Customer Service Managers (CSMs) create campaigns and strategies to target required customers for increasing customer retention, customer satisfaction, and customer engagement.

These are the key factors expected to drive market growth over the forecast period. The demand for loyalty management software is expected to increase over the forecast period. Around 60% of internet users cite receiving rewards as a valued aspect of retail shopping. Online reward programs help increase the company's overall revenue by 5%-10%. According to Forbes, approximately 80% of online shoppers shift to a competitor if they experience bad customer service in the initial period. Intensifying competition among brands has become essential for retailers to satisfy their customers and prevent them from switching to other brands. Furthermore, as smartphones & mobile devices are becoming faster & smarter, communication & exchange of information are getting more convenient & efficient than before.

This is expected to boost the demand for online shopping, leading to an increasing demand for loyalty management. These are the key factors expected to drive market growth. A rapid increase in the number of smartphone users suggests that more individuals are exposed to online ads and prompted to consider online shopping. The number of individuals owning a smartphone or using the internet remains high in developed economies, whereas it is increasing in emerging economies. The growing number of internet users, particularly in the developing economies of Latin America, Middle East, and Asia Pacific, is expected to contribute to industry growth. Therefore, rising usage of smartphones & internet and rising consumer preference for online shopping will boost market growth.

Loyalty Management Market Report Highlights

• The service segment is expected to register a CAGR of 9.6% from 2024 to 2030. The increasing competition in various industries, including retail, hospitality, and financial services, has prompted companies to adopt loyalty programs to differentiate themselves and retain customers in saturated markets
• The channel loyalty segment is expected to register a CAGR of 9.8% from 2024 to 2030. Many businesses combine their loyalty and referral programs to enhance engagement and client count. Giving referral codes or assisting in the addition of a new client is also a tactic to increase engagement while paying the referrer with a reward, such as discounts, coupons, and free months of subscriptions, which enhances the organization's revenue and sales
• The managed services segment is expected to register a significant CAGR from 2024 to 2030. Managed services help businesses focus on core competencies while leveraging the expertise of specialized firms to design, implement, and maintain their loyalty initiatives
• The business-to-business segment is expected to register a considerable CAGR from 2024 to 2030. The loyalty programs specialize in implementing and developing loyalty solutions that cater to the unique needs and dynamics of B2B relationships
• The cloud segment is expected to register a CAGR of 9.8% from 2024 to 2030. As companies become more focused on cost-effectiveness and scalability, cloud-based loyalty-based solutions are becoming increasingly popular in the market
• The growing popularity of cloud-based solutions encourages various cloud service providers to expand their businesses. For instance, in July 2023, IBM launched a new cloud region in Madrid, Spain. This new cloud region comprises three data centers, in Madrid, Las Rozas, and Alcobendas
• The SMEs segment is anticipated to grow at a CAGR of 10.0% from 2024 to 2030. The benefits of cloud-based deployments, including cost savings and compatibility with their Customer Relationship Management (CRM) system, entice small- and medium-sized businesses to choose cloud-based loyalty management solutions
• The hospitality segment is expected to register a CAGR of 10.0% from 2024 to 2030 due to the increasing adoption of loyalty management solutions by various restaurants, hotels, and resorts to enhance their customer’s experience and loyalty to the brand
• Asia Pacific is anticipated to emerge as the fastest-growing region at a CAGR of 10.3% from 2024 to 2023 due to SMEs' increasing adoption of loyalty management solutions to attract potential audiences and gain a competitive edge

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