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Global loyalty management market share is expected to increase by USD 4.40 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 14.38%. The growth of the market depends on several factors such as growing customer preference for personalized solutions, rising demand in emerging economies, and rise in adoption of cloud based loyalty management software offerings.
This loyalty management market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the loyalty management market segmentation by deployment (cloud-based and on-premise) and geography (North America, Europe, APAC, South America, and the Middle East and Africa).
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The research studied the historical data considered for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the loyalty management market.
Growing customer preference for personalized solutions is one of the key factors driving the loyalty management market's growth. Customer loyalty programs have undergone many changes in the past few decades. Earlier, customers needed to go to one local store several times to feel they were being rewarded for shopping in the same place; but nowadays, customers not only expect to be rewarded instantly for shopping at their favorite brands and able to use their rewards immediately at the point-of-sale, but they also expect optimal engagement with brands pre- and post-purchase through their brand communication channel. These days, customers want individualized advice, discounts, and promotions from companies to profit from them. Hence, retailers also prefer personalized reward programs as it helps them improve sales, customer loyalty, web traffic, and profits. All these factors are anticipated to boost the expansion of the market during the forecast period.
The growing application of artificial intelligence (AI) for innovative solutions is one of the key loyalty management market trends fueling market growth. AI is used for monitoring various transactions as well as for recognizing and removing fraudsters who may target loyalty points accounts. For instance, in May 2021, Comarch SA launched a new AI-powered reward software for safety services. This contributes to multiplied consumer self-belief in brands by imparting data safety and privacy options. Hence, the use of such tools adds to the advantage of customers, which is expected to drive the growth of the market during the forecast period.
Stringent government regulations that may affect the adoption of loyalty programs are one of the factors limiting the loyalty management market growth. The fundamental factors that affect companies' loyalty programs under the GDPR are the definition of personal data, consent, partners, enterprise communication, and statistics withdrawal. Thus, with the high chances of facing penalties that are detrimental to their revenue, companies following safety data protection policies are paramount when it comes to compliance. Concerns regarding various federal and state regulations such as gift certificate laws, trade stamp laws, data security laws, and privacy laws overall limit the implementation of loyalty programs. Hence, various credit card-related issues and laws prevent the banking industry from reorganizing its incentive system, which has an influence on the overall market growth during the forecast period.
This loyalty management market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
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The loyalty management market share growth in the cloud-based segment will be significant during the forecast period. The cloud-based deployment type offers higher agility than the on-premises deployment type. Cloud-based loyalty management software is more popular with small businesses because of its cost-effectiveness. Hence these factors will increase the demand for cloud-based deployment in the market during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the loyalty management market size and actionable market insights on the post-COVID-19 impact on each segment.
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48% of the market’s growth will originate from North America during the forecast period. The US is the key market for the loyalty management market in North America. Market growth in this region will be slower than the growth of the market in Europe.
The growing IT and telecom, healthcare, BFSI, manufacturing, retail, and e-commerce industries will facilitate the loyalty management market's growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID-19 Impact and Recovery Analysis
The outbreak of COVID-19 in 2020 adversely affected business activities and the overall economy of the region. However, during the forecast period, the market in focus is expected to grow owing to the resumption of business activities as well as the reopening of production units and office premises after Q4 2020.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the loyalty management market encompasses successful business strategies deployed by the key vendors. The loyalty management market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The loyalty management market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our In-house experts produce extensive information on the value chain and parent market of the loyalty management market, which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also the optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the report.
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Loyalty Management Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.38% |
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Market growth 2022-2026 |
USD 4.40 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
13.78 |
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Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
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Performing market contribution |
North America at 48% |
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Key consumer countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Aimia Inc., Bond Brand Loyalty, Brierley and Partners Inc., Capillary Technologies, Cheetah Digital Inc., Comarch SA, Epsilon Data Management LLC, Five Stars Loyalty Inc., ICF International Inc., Kobie, Maritz Motivation Inc., Merkle Inc., Oracle Corp., Punchh Inc., SAP SE, SessionM, Social Annex Inc., The Lacek Group, LoyaltyLion Ltd, and Apex Loyalty |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Deployment
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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