Loyalty Management Market Overview
Loyalty Management Market size is analysed to
grow at a CAGR of 16.1% during the forecast 2021-2026 to reach $17.92 billion by 2026. Loyalty
management is a strategic marketing approach in which a company focuses on growing
and retaining existing customers through incentives. Branding, customer experience management product
marketing, customer retention and channel loyalty marketing are all components of the customer
proposition, which is the customer's subjective assessment of whether or not to
purchase a brand based on an integrated combination of the value they receive
from each of these marketing disciplines. Since loyalty management revolves
around pleasing/rewarding an organization's repeat customers, developing
customer-centric strategies has become necessary to maintain a high customer
retention rate, driving demand for loyalty management programmes. Increased
adoption of omnichannel and multi-channel programmes, technological
advancements, and a growing need for competitive differentiation are major
growth drivers for the market. The increasing internet penetration rate,
smartphone proliferation, and rising consumer preference for online shopping
are all expected to contribute to market growth. Given the ability of advanced
AI-based loyalty management platforms to facilitate enhanced analytics and
reporting facilities and intelligently reward customers, and as a result, the
growing adoption of loyalty management software as a service solutions based on machine learning and
AI to enhance loyalty programmes while catering to the growing customer
preference for personalization bodes well for market growth.
Loyalty Management Market Report
Coverage
The report: “Loyalty Management Industry Outlook –
Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the
following segments of the Loyalty Management industry.
By Component: Software, Services (Professional Service, Managed
Service).
By Organization Size: SMEs, Large
Enterprises.
By Deployment: On-premises, Cloud
By Operator: B2B, B2C
By Application: Web, Mobile
By Vertical: Aviation, BFSI, Healthcare, Consumer goods & Retail,
Manufacturing, Travel & Hospitality, Others.
By Geography: North America, South America,
Europe, APAC, and RoW
Key Takeaways
- Loyalty management is used by key companies in a variety of industry verticals, with the primary goal of client retention and the development of long-term customer relationships.
- During the forecast period, North America is expected to account for the largest share of the loyalty management market. The region includes developed economies such as the United States and Canada, which have fairly adopted latest instruments in domains such as customer data analytics and real-time reporting, as well as incorporating advanced technologies such as machine learning and AI, allowing organisations in these economies to excel in the loyalty management market space.
Loyalty Management Market, By Region, 2020
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Loyalty Management Market Segment Analysis - By Deployment
During the
forecast period, the cloud segment will grow at a faster CAGR. The widespread
use of the internet, as well as the widespread adoption of various technologies
such as mobile, web, and social media, have aided in the growth of digital
content. Organizations require solutions to better manage and repurpose their
native and web-based content, as well as integrate it with other loyalty
management systems, such as CRM and marketing resource management, to
strengthen their marketing efforts and enable real-time content collaboration
among employees cost-effectively for analysis and other purposes. Such
solutions, however, are costly and have limited scalability. As a result,
companies are more likely to adopt cloud-based loyalty management solutions.
Because there are no high upfront costs, these solutions provide all of the
benefits at a lower cost. Furthermore, they help organisations with scalability
and ease of access to organisational content, regardless of employee location,
thereby assisting with business continuity.
Loyalty Management Market Segment Analysis – By Operator
B2C segment is
analysed to grow at highest CAGR of 7.2% during the forecast period 2021-2026. Loyalty
management solutions are increasingly being adopted by B2C companies seeking to
reap the real-world benefits of customer experience management for their bottom
line and reputation at the same time. Loyalty management solutions can collect
business-critical data to predict and influence potential customer behaviour,
from gathering customer satisfaction information proactively to internal
sourcing of customer experience (CX) data. Freson Bros., a Canadian grocer,
recently prioritised data-driven loyalty by implementing Clutch's intelligent
customer marketing platform and redesigning its existing loyalty programme. The
company is likely to outline insights that will help the company reward its
customers in a personal and valuable manner using the revamped programme. As smartphones
become more prevalent in B2C loyalty programmes, vendors are being compelled to
develop enhanced smartphone-oriented programmes. For example, after determining
that mobile orders and payments account for 11% of all transactions in the
United States, Starbucks launched its mobile app for leveraging loyalty
programmes.
Loyalty Management Market Segment Analysis - Geography
North America is analysed to be the major region with a share of 35.2% in 2020 for the Loyalty Management Market. The region includes developed economies such as the United States and Canada, which have fairly adopted latest tools in domains such as customer data analytics and real-time reporting, in addition to incorporating advanced technologies such as machine learning and AI, allowing organisations in these economies to excel in the loyalty management market space. In North America, the United States has the highest self-reported rate of loyalty programme participation. Over 80% of people in the United States have signed up for at least one loyalty programme in the retail, travel, or hospitality sectors. With the retailer's mobile applications, the traditional methods for presenting their loyalty enrollment at retail locations, such as scanning a card in-store and looking up by phone number or email, are re-established. Some of the largest loyalty management companies have their headquarters in North America, including Aimia, ICF International Inc, Epsilon, Bond Brand Loyalty, Kobie Marketing, Maritz Holdings Inc., and TIBCO Software.
Loyalty Management Market Drivers
High demand for advanced solutions to monitor customer scores and improve customer engagement:
In today's business world, a company's
success is determined by the success of its customers. The higher the level of
customer engagement, the higher the level of customer satisfaction. As a
result, businesses require appropriate software solutions to continuously
monitor customer scores. Customer lifetime value ratings, Customer Effort Score
(CEC), Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and
Recency, Frequency, and Monetary (RFM) analysis scores are all examples of
customer scores. The CSAT score informs businesses about whether their
customers are satisfied with their products/services, whereas the NPS score is
used to calculate customer loyalty by determining how likely customers are to
recommend the brand to others and purchase from the company again in the
future. RFM analysis scores, on the other hand, indicate how frequently
customer purchases drive the company's revenue. Customers who are experiencing
customer churn or who want to expand their customer base use loyalty management
solutions to gain real-time visibility into the health of their customers by
using algorithms and rules to predict the likelihood of subscription renewal. The
solutions generate customer profiles based on their behaviour and analyse them
to gain a better understanding of customer engagement, usage frequency, and
subscription utilisation. In turn, the analysis results assist Customer Service
Managers (CSMs) in developing campaigns and strategies to target specific
customers in order to increase customer engagement, retention, and
satisfaction. It also aids in increasing revenue and the economic value of a
firm's investment.
Growing importance of
customer insights to predict the customer intents:
Organizations see
customer loyalty management solutions as one of the most important tools for identifying
customer interests and forecasting purchase intent. The solution's loyalty
analytics feature enables marketers to predict which customers are likely to
leave or switch away from a product. The marketer could devise customer
retention strategies and offer incentives such as discount coupons or product
upgrades. Once the buyer persona has been identified, it is critical to define
a customer loyalty strategy that maps all relevant touch points along the
customer journey in order to better plan and organise how a company will
interact with customers at each touchpoint. This will assist companies in
designing and marketing products that are tailored to the needs of their
customers, ultimately increasing product adoption and, as a result, the company's
market share.
Loyalty
Management Market Challenges
Stringent government
regulations:
Regional regulations have an impact
on the liability modelling of loyalty programmes. Various regulations, such as
the Credit Card Act and the Durbin Amendment of 2010, are putting pressure on
the banking industry to restructure its reward programme portfolio. For
example, Ontario's Protecting Rewards Points Act went into effect in January
2018, changing the loyalty programme and reward point process in Ontario and Quebec,
Canada. With the implementation of the General Data Protection Regulations
(GDPR) on May 25, 2018, it is critical that businesses understand how it will
impact their business policies. Loyalty management programmes are the most
effective way to collect consumer data, emphasising the importance of GDPR
compliance. The definition of personal data, consent, partners and business
communication, and information withdrawal are the major factors that affect
campiness loyally programme under GDPR. With the threat of major penalties to a
company's revenue, following effective data protection policies is critical
when it comes to compliance.
Loyalty Management Market Landscape
Technology launches, acquisitions,
Partnerships and R&D activities are key strategies adopted by players in the Loyalty management market. In 2020, the market of
AS-interface industry outlook has been fragmented by several companies. Loyalty
Management top 10 companies include
- Bond Brand Loyalty
- Kobie Marketing
- Epsilon
- ICF Next
- Aimia
- Annex Cloud
- Oracle
- SAP SE
- Apex Loyalty
- Capillary
Acquisitions/Technology Launches/Partnerships
- In January 2021, Flipkart introduced a digital payment option, SuperCoin Pay, to strengthen its SuperCoin Rewards program. The new program provides rewards and benefits to the customers who will shop on this platform.
- In February 2020, Aimia Loyalty Platform (ALP) SaaS is now available on Microsoft Azure. Aimia has integrated its ALP SaaS environment with Azure to increase scalability and reach for brands looking for a dynamic customer loyalty management platform. End users have benefited from streamlined deployment and improved platform management as a result of the integration.
Relevant Report Titles:
Digital Transaction Management Market - Forecast 2021 - 2026
Report Code: ESR 29790
Big Data Enterprise Market - Forecast(2021 - 2026)
Report Code: ITR 0126
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LIST OF TABLES
LIST OF FIGURES
1.US Loyalty Management Market Revenue, 2023-2030 ($M)2.Canada Loyalty Management Market Revenue, 2023-2030 ($M)
3.Mexico Loyalty Management Market Revenue, 2023-2030 ($M)
4.Brazil Loyalty Management Market Revenue, 2023-2030 ($M)
5.Argentina Loyalty Management Market Revenue, 2023-2030 ($M)
6.Peru Loyalty Management Market Revenue, 2023-2030 ($M)
7.Colombia Loyalty Management Market Revenue, 2023-2030 ($M)
8.Chile Loyalty Management Market Revenue, 2023-2030 ($M)
9.Rest of South America Loyalty Management Market Revenue, 2023-2030 ($M)
10.UK Loyalty Management Market Revenue, 2023-2030 ($M)
11.Germany Loyalty Management Market Revenue, 2023-2030 ($M)
12.France Loyalty Management Market Revenue, 2023-2030 ($M)
13.Italy Loyalty Management Market Revenue, 2023-2030 ($M)
14.Spain Loyalty Management Market Revenue, 2023-2030 ($M)
15.Rest of Europe Loyalty Management Market Revenue, 2023-2030 ($M)
16.China Loyalty Management Market Revenue, 2023-2030 ($M)
17.India Loyalty Management Market Revenue, 2023-2030 ($M)
18.Japan Loyalty Management Market Revenue, 2023-2030 ($M)
19.South Korea Loyalty Management Market Revenue, 2023-2030 ($M)
20.South Africa Loyalty Management Market Revenue, 2023-2030 ($M)
21.North America Loyalty Management By Application
22.South America Loyalty Management By Application
23.Europe Loyalty Management By Application
24.APAC Loyalty Management By Application
25.MENA Loyalty Management By Application
26.Oracle Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.IBM Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.SAP SE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Aimia Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Comarch, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Bond Brand Loyalty, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Brierley+Partners, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Epsilon, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Tibco Software, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Maritz Holdings Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Fidelity Information Services, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Lumata Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)