Loyalty Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Loyalty Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global loyalty management market was valued at USD 4023.5 million in 2020, and it is expected to reach USD 13,800.2 million by 2026 and witness a CAGR of 22.7% over the forecast period (2021 - 2026). Loyalty management is adopted by key companies across various industry verticals, whose primary focus is on client retention and building sustainable customer relationships.

Key Highlights

• In the United States, there are over 200 subscription video-on-demand platforms, and in order to set themselves apart, these companies are turning to unique loyalty reward programs.
• In a shift from product-centric strategies, businesses across major industry verticals are gradually shifting toward customer-centric approaches. It has been observed that, regardless of time, creating customer value and putting customers first beyond a simple customer focus generates the greatest and lasting business value. As loyalty management revolves around pleasing/rewarding an organization’s repeat customers, developing customer-centric strategies have become necessary to keep the customer retention rate high, thus driving the demand for loyalty management programs.
• The lack of awareness about loyalty programs can hinder the growth of the loyalty management market. The market studied is observing lucrative growth in double digits, owing to the widespread adoption across industry verticals, and the client retention policies incorporated by various organizations in these verticals.

Key Market TrendsB2C Solution to Account for Significant Share

• Loyalty management solutions are increasingly being adopted by B2C companies, which are trying to reap the real-life benefits of customer experience management for their bottom-line and reputation simultaneously.
• From gathering customer satisfaction information proactively to internal sourcing of customer experience (CX) data, loyalty management solutions can accumulate business-critical data to predict and influence potential customer behavior.
• Recently, Canadian grocer, Freson Bros., made data-driven loyalty a priority by choosing Clutch’s intelligent customer marketing platform, thereby remodeling its existing loyalty program. Using the revamped program, the company is likely to outline insights that are likely to help the company reward its customers in a personal and valuable manner.
• The increasing penetration of smartphones in B2C loyalty programs is also forcing vendors to develop enhanced smartphone-oriented programs. For instance, as Starbucks analyzed that mobile orders and payments represent 11% of all its transactions in the United States, it launched its mobile app for leveraging loyalty programs.

The United States to Account for the Largest Share

• The United States has the most elevated self-reported rate of loyalty program participation in North America. Over 80% of the individuals in the United States have enrolled with at least one loyalty program in the retail, travel, or hospitality sectors.
• The conventional methods for presenting their loyalty enrollment at retail locations, such as scanning a card in-store and lookup by telephone number or email, are re-established with the retailer's mobile applications.
• It was estimated that 25% of the clients selecting loyalty programs favor the applications contrasted with other customary strategies. This is urging numerous loyalty program projects to move to mobile application platforms in the United States.
• More than 75% of US adults participate in customer loyalty programs, like those offered by credit card companies, hotel chains, and retailers. More than USD 50 billion worth of perceived value in reward points and miles are issued by American businesses annually.
• Most loyalty customers in the United States prefer monetary benefits, such as price and value, while choosing a loyalty program. Product discounts and free shipping are the major drivers for choosing loyalty programs for specific retailers. This creates a high need for flexible loyalty management software that can roll out special deals to loyal customers during the festive seasons or special days.

Competitive Landscape

• The loyalty management market is moderately fragmented. With innovation being the primary demand from consumers, companies are emphasizing providing easy and focused solutions to attract buyers.
• With the impact of innovation very high in the market, solution providers with innovative offerings are gaining a competitive edge. While a significant share of the market remains unpenetrated, companies are rushing to gain the first-movers advantage. Hence, competitive rivalry in the market is moderate, and it is expected to grow in the future.
• Some key players in the market include Aimia Inc. and IBM Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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