The loyalty management market is experiencing rapid growth, increasing from $9.55 billion in 2023 to $11 billion in 2024, with a CAGR of 15.1%. This growth is fueled by a focus on customer retention, the adoption of card-based loyalty programs, data-driven insights, and the expansion of e-commerce. The market is expected to grow to $20.3 billion by 2028, achieving a CAGR of 16.6%. Future growth factors include sustainability initiatives, real-time engagement strategies, gamification elements, and a focus on environmental and social responsibility. Key trends include personalization and AI integration, blockchain for loyalty programs, subscription-based models, digital wallet integration, cross-industry collaborations, and the adoption of voice and conversational interfaces.
Major Driver In The Loyalty Management Market
The rise in the number of cardholders and the use of reward points is driving the growth of the loyalty management market. Businesses leverage customer loyalty cards to incentivize clients to return for repeat transactions and gain insights into consumer purchasing behaviors for tailored incentive programs. According to a 2022 Customer Loyalty Data Survey conducted on 1,276 U.S. consumers by Clarus Commerce, 61% of customers reported switching to brands offering better incentives. Additionally, in India, the banking system reported nearly 1.1 million new credit card additions in September 2021, with a 57% increase in credit card spending over the previous year. Therefore, the rise in cardholders and reward point usage is fueling the growth of the loyalty management market. The market size for loyalty management solutions witnessed significant expansion in 2023, mirroring the increasing emphasis on customer retention strategies across industries. Anticipated trends for 2024 and beyond indicate sustained growth trajectories, propelled by the evolving dynamics of consumer behavior and the continuous evolution of loyalty management technologies to meet market demands.
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Loyalty Management Market Competitive Landscape
Kobie Marketing Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Fidelity National Information Services Inc., CF International Inc., ICF International Inc., TIBCO Software Inc., Maritz Holdings Inc., MicroStrategy Inc., Comarch SA, AIMIA Inc., Blue Ocean Systems, VeriPark, The Lacek Group Inc., Annex Cloud, Capillary Technologies, Kognitiv Corporation, Antavo Limited, Paystone Inc., Apex Loyalty, Bond Brand Loyalty Inc., Brierley Partners, FiveStars Loyalty Inc., Lumata Group, Sailplay, Epsilon Data Management LLC
Key Loyalty Management Market Trend
Investing in analytics and business intelligence tools for relevant rewards and incentive schemes is gaining popularity in loyalty management programs. Companies in loyalty management are investing in analytics and business intelligence tool for a targeted customer approach. Collecting engagement data throughout a company’s clients' buying journeys can help the company gain a better understanding of how they behave and how to communicate with them most effectively. For instance, in May 2021, a US-based software company, Salesforce introduced new CDP (Customer Data Platform) improvements to guarantee that customer data becomes smarter and more linked, making it simpler for businesses to act on it in a more trustworthy manner. CDPs guarantee that all addressable channels have access to a uniform profile, and that personalization and relevance are implemented.
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Loyalty Management Market Segmentation
The loyalty management market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment: Cloud, On-Premises
3) By Organization Type: Small & Medium-Sized Enterprises, Large Enterprises
4) By End Use: BFSI, IT, Telecommunication, Transportation, Retail, Hospitality, Media And Entertainment, Other End-Users
By Geography:The regions covered in the loyalty management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the loyalty management market in 2023.
The Loyalty Management Global Market Report 2024 furnishes information about the global loyalty management market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
