How Has The Loyalty Management Market Size Evolved Historically?
The loyalty management market has seen considerable growth due to a variety of factors.
• The market size for loyalty management has witnessed a swift expansion in recent years. Projected to escalate from $10.94 billion in 2024 to $12.6 billion in 2025, it is expected to experience a compound annual growth rate (CAGR) of 15.2%.
The growth witnessed in the historic period can be credited to factors such as focus on customer retention, implementation of card-based loyalty programs, competitive differentiation, data-generated perspectives, e-commerce expansion, betterment of customer experience, and the globalization of markets.
What is the Forecasted Market Size and CAGR for the Loyalty Management Market?
The loyalty management market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for loyalty management is forecasted to witness quick expansion in the coming years, reaching $24.12 billion in 2029, with a compound annual growth rate (CAGR) of 17.6%.
This growth during the forecast period can be credited to factors such as sustainability, ethical methods, real-time interaction, game-like features, voice-based and conversational interfaces, and emphasis on environmental and social responsibility. Key trends for the forecast period are personalized offerings, artificial intelligence, blockchain technology in loyalty programs, subscription models, integration of digital wallets, partnership across different industries, and more voice and conversational interfaces.
What Are The Core Factors Supporting Growth In Loyalty Management Market?
The growth of the loyalty management market is being fueled by an increase in cardholders as well as the use of reward points. By using customer loyalty cards, businesses are able to not only stimulate repeat business but also gain valuable insights into customers' buying behavior. This enables them to design personalized rewards that encourage customers to continue shopping with them. A 2022 Customer Loyalty Data Survey conducted by Clarus Commerce on 1,276 U.S. consumers revealed that 61% of customers said they've switched to a brand that provides better incentives from their regular brand. Consequently, the loyalty management market is seeing robust growth due to expanding cardholder base and active usage of reward points.
What Are The Principal Market Segments In The Global Loyalty Management Healthcare Industry?
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
Subsegments:
1) By Software: Loyalty Program Management Software, Customer Engagement Software, Analytics and Reporting Software, Mobile Loyalty Applications, Point of Sale (POS) Integration Software, Campaign Management Software
2) By Services: Consulting Services, Implementation Services, Support and Maintenance Services, Training and Education Services, Data Management Services, marketing and Promotion Services
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Which Emerging Market Trends Are Altering The Loyalty Management
Leading firms in the loyalty management market are adopting strategic alliances to launch loyalty schemes aimed at increasing customer retention, fostering brand loyalty, and creating personalized customer experiences. As a trend gaining popularity, businesses are focusing on enhancing customer loyalty through bespoke rewards, with a specific emphasis on the health and wellness sector to boost customer involvement and retention. For example, Universal Drugstore Ltd in Canada collaborated with Comarch SA, a company from Poland, in April 2022 to unveil their Wellness Rewards loyalty scheme. Under this reward system, customers accumulate points by making purchases, participating in health-related events, or interacting with the brand on various social media platforms. This strategy promotes continuous engagement and involvement. It also provides an opportunity for businesses to collect crucial data about customer habits and preferences, this data can be utilized to fine-tune marketing tactics and improve service provision.
Who Are the Key Players in the Loyalty Management Market?
Major companies operating in the loyalty management market include:
• Kobie Marketing Inc.
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce.com Inc.
• Fidelity National Information Services Inc.
• ICF International Inc.
• TIBCO Software Inc.
• Maritz Holdings 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
What are the Regional Insights into the Loyalty Management Market?
North America was the largest region in the loyalty management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the loyalty management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
