Enjoy complimentary customisation on priority with our Enterprise License!
The loyalty management market share is expected to increase by USD 4.40 billion from 2021 to 2026, 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 software offerings.
Download Report Sample to Learn More
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 market.
Growing customer preference for personalized solutions is one of the key market drivers. 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 loyalty Management market during the forecast period.
The growing application of artificial intelligence (AI) for innovative solutions is one of the key market trends fueling the market. 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 market during the forecast period.
Stringent government regulations that may affect the adoption of loyalty programs are one of the factors limiting 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 loyalty management market during the forecast period.
This market trends and analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market. The actionable insights on the trends and challenges will help companies evaluate and develop strategies for 2022-2026.
To gain further insights on the market contribution of various segments Request a PDF Sample
The market share 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 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 market growth analysis report provides an accurate prediction of the contribution of all the segments of the market size.
For more insights on the market share of various regions Request PDF Sample now!
48% of the market’s growth will originate from North America during the forecast period. The US is the key market for the 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 market's growth in North America over the forecast period. This market research and growth report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for Companies, which will assist in creating efficient business plans.
The market growth and forecasting report analyzes the market’s competitive landscape and offers information on several market companies, including:
This statistical study of the market encompasses successful business strategies deployed by the key companies. The market is fragmented, and the companies are deploying organic and inorganic strategies to compete in the market.
To make the most of the opportunities and recover from the post-pandemic impact, market companies should focus more on the prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The market research 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 market, which Companies 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 market forecasting report.
The Global Loyalty Management Market thrives on loyalty management software, benefitting merchants through reward points, coupons, and incentives across diverse industries like BFSI, hotels, retail, media, and entertainment. Key players like PayU and initiatives like Twid loyalty program drive customer engagement. Compliance with federal regulations, privacy, and security standards, including credit card-related rules, is paramount.
The cloud segment, integrated with social media, mobile phones, and tablets, enhances Loyalty Cloud 1, catering to enterprises of all sizes. With Zithara, UPI rewards app, Bharat Loyalty program, and solutions like JustBilling, Punchcard, EchoApp, and SailPlay, the market spans manufacturing, IT & telecommunications, transportation, hospitality, and retail. Revenue is evident in the BFSI segment, reflecting preferences and spending habits within the dynamic loyalty landscape.
Loyalty Management Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.38% |
Market growth 2022-2026 |
USD 4.40 billion |
Market structure |
Fragmented |
YoY (%) |
13.78 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 48% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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 |
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. |
Customization purview |
If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.