Global Loyalty Management Market Segmentation, By Component (Software, Services and Solutions), Deployment Type (On-Premises and On-Demand), Organization Size (Large Enterprise and Small and Medium-Sized Enterprise), Vertical (Banking Financial Services and Insurance, Retail and Consumer Goods, Healthcare and Life Sciences, Travel and Hospitality, IT and Telecommunication, Media and Entertainment, Manufacturing and Others), Type of Offering Capacity (Loyalty Management, Technology Capabilities Platform, Analytics and Measurement, Services Delivery Capabilities, Loyalty Strategy Design and Loyalty Marketing) – Industry Trends and Forecast to 2031.
Loyalty Management Market Analysis
As of result of influence on brand value and the power of loyalty management programs to both retain existing consumers and draw in new ones, loyalty management has grown to be a crucial component of vendor strategy. The market for loyalty management includes efficient and well-thought-out strategies for choosing, managing, relating to, and controlling client purchasing behavior. By giving customers rewards for their purchases, this strategy helps retain customers.
Loyalty Management Market Size
Global loyalty management market size was valued at USD 9.14 billion in 2023 and is projected to reach USD 38.56 billion by 2031, with a CAGR of 19.71% during the forecast period of 2024 to 2031.
Report Scope and Market Segmentation
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Attributes
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Loyalty Management Key Market Insights
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Segmentation
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Countries Covered
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U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
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Key Market Players
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Epsilon Data Management, LLC. (U.S.), Oracle (U.S.) BOND BRAND LOYALTY INC. (Canada), Brierley+Partners (U.S.), Merkle Inc. (U.S.), Yotpo Ltd. (U.S.), Comarch SA. (Poland), ICF International Inc. (U.S.), Maritz Motivation Inc. (U.S.), Cheetah Digital (U.S.), Sailplay (U.S.), Jakala (Italy), AnnexCloud (U.S.), Apex Loyalty (U.S.), Five Stars Loyalty, Inc. (U.S.), Zinrelo (U.S.), Punchh, Inc. (U.S.) among many others.
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Market Opportunities
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Loyalty Management Market Definition
Loyalty management is a strategy business use to establish and uphold trust with their stakeholders and customers. It is a strategy that focuses on rewarding customers for previous purchases and luring them in with incentives to continue being loyal customers in the future.
Loyalty Management Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- Growing number of smartphone users
Brands are thinking about mobile applications to develop and increase client loyalty. Various brands are launching promotions or products that are only available through their mobile applications. For instance, high-end retailer Harvey Nichols introduced a loyalty program in May 2015 that was only available as a smartphone app, demonstrating the growing significance of digital and mobile channels over traditional cards.
- Increased spending on loyalty programs
More than ever, businesses are making investments in their customer loyalty management programs. Programs for managing customer loyalty are currently pricy, complicated, and big business. For instance, businesses in the United States spent almost $2 billion on loyalty programs in 2015. The main goals of this spending were to meet the KPIs for program expansion and income generation.
Furthermore, the factors such as rising urbanization, industrialization and growing number of end users globally have further contributed to the overall market expansion during the forecast period. Additionally, the surging trend of e-commerce shopping and rising per capita income are anticipated to drive the market's growth rate.
Opportunities
- Rising deployment of advanced technologies
Customer experience initiatives are automated by loyalty management systems with the aid of big data analytics. The most recent analytics solutions are adapted to the company's customer interactions and to social media platforms where the data is expected to be recorded & analyzed. Mobile, wearable, online, and social media platforms all provide a wealth of unstructured customer data. If properly updated, this data should help firms make better strategic decisions for their offerings in light of the shifting dynamics of their target market.
Restraints/Challenges
- Stringent regulations imposed by the government
Companies must comprehend how the General Data Protection Regulations (GDPR), which go into effect on May 25, 2018, will affect their corporate strategies. The most efficient method of collecting consumer data is through loyalty management programs, which highlights the significance of GDPR compliance. The definition of personal data, permission, partners' and businesses' communications, and information withdrawal are the main GDPR-affected elements. Therefore, adhering to effective data protection rules is crucial when it comes to compliance given the potential of significant penalties to the income of businesses.
- Security and privacy concerns
In addition to the point above, a threat to customer’s financial information can challenge the market growth rate. Dearth of expert knowledge and technical expertise especially in the developed and developing economies and lack of skilled professionals and awareness among management level individuals will create hurdles for the market in regards to the smooth growth in the market value. Further, absence of an advanced IT infrastructure will yet again hamper the market growth rate.
This loyalty management market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the loyalty management market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Loyalty Management Market
COVID-19 had an unprecedented and staggering impact on the global loyalty management market. Loyalty management experienced lower than anticipated demand across all territories in the world owing to the movement and lockdown restrictions. Spurt in the growth of e-commerce industry was a ray of hope, but the market seemed to be on the lower side in the pandemic.
Loyalty Management Market Scope
The loyalty management market is segmented on the basis of component, deployment type, organization size, vertical and type of offering capacity. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Software
- Services
- Professional Services
- Consulting
- Implementation
- Support & Maintenance
- Managed Services
- Solutions
- Customer Loyalty
- Employee Retention
- Channel Loyalty
Deployment Type
- On-Premises
- On-Demand
Organization Size
- Large Enterprise
- Small and Medium-Sized Enterprise
Vertical
- Banking Financial Services and Insurance
- Retail and Consumer Goods
- Healthcare and Life Sciences
- Travel and Hospitality
- IT and Telecommunication
- Media and Entertainment
- Manufacturing
- Others
Type of Offering
- Loyalty Management
- Technology Capabilities Platform
- Analytics and Measurement
- Services Delivery Capabilities
- Loyalty Strategy Design
- Loyalty Marketing
Loyalty Management Market Regional Analysis
The loyalty management market is analyzed and market size insights and trends are provided by country, component, deployment type, organization size, vertical and type of offering capacity as referenced above.
The countries covered in the loyalty management market report are U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America dominates the loyalty management market due to established economies such as the U.S. and Canada and growing fondness for loyalty-based retail brands. The concept of cashback, rebates and discount on every product is another important factor determining the dominance of this region.
Asia-Pacific region is showing a promising potential and is set to grow with the highest growth rate during the forecast period. This is because of the growth and expansion of the e-commerce industry, growing number of credit card and debit card users and increasing per capita income.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Loyalty Management Market Share
The loyalty management market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to loyalty management market.
Loyalty Management Market Leaders Operating in the Market Are:
- Epsilon Data Management, LLC. (U.S.)
- Oracle (U.S.)
- BOND BRAND LOYALTY INC. (Canada)
- Brierley+Partners (U.S.)
- Merkle Inc. (U.S.)
- Yotpo Ltd. (U.S.)
- Comarch SA. (Poland)
- ICF International Inc. (U.S.)
- Maritz Motivation Inc. (U.S.)
- Cheetah Digital (U.S.)
- Sailplay (U.S.)
- Jakala (Italy)
- AnnexCloud (U.S.)
- Apex Loyalty (U.S.)
- Five Stars Loyalty, Inc. (U.S.)
- Zinrelo (U.S.)
- Punchh, Inc. (U.S.)
Latest Developments in Loyalty Management Market
- In order to enable brands to provide individualised customer experiences, Oracle bought CrowdTwist in June 2021, one of the top suppliers of cloud-native customer loyalty solutions
- Kobie obtained an exclusive licence to Rosemark's Quantitative PersonaTM (QP) Method in May 2021 for the loyalty and co-branded credit card markets. In each market, the most valuable clients are determined via the QP Method based on the preferences that create economic value
- In April 2021, Comarch debuted their new microsite, loyalty marketing cloud. Customers can browse Comarch's items on the new site, which has been developed to provide the most user-friendly browsing experience possible with improved navigation and functionality
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