Global loyalty management market is anticipated to grow at a considerable CAGR of 15.6% during the forecast period (2021-2027). The growing digitalization across the globe is a key promoter of loyalty management market. With ever increasing customer access to the digital channels, the companies are finding new and innovative ways to lure their customers. A customer loyalty management is a marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis by making use of different marketing strategy, tools, and tactics. Therefore, the growing interest of companies in adoption of advanced technology to engage and retain more & more customers on their sites is driving the growth of the global loyalty management market. Studies have found that members of customer loyalty programs typically spend up to 18% more than other customers. The increasing involvement of companies in adopting customer loyalty programs such as Blume, Sukoshi, Caraa, Scene, and so on is further anticipated to drive the market growth.

A significant rise in the retail sector has been witnessed over the years across the countries, including the US, China, India, and Germany. For instance, as per the US Census Bureau, in the US, the total retail sales for the second quarter of 2019 were was estimated at $1,361.8 billion, an increase of 1.8% from the first quarter of 2019. Likewise, in China, in 2018, the total retail sales of consumer goods reached $5,539 billion, up by a 9% year-on-year nominal growth rate (as per the National Bureau of Statistics of China). Retailers invest significantly in promotions and marketing solutions to attract consumers and leverage sales. Better customer experience is an key aspect in the retail sector to build a long-term relationship with the customer. Therefore, key retailers such as StarBucks, Reebok, Disney, DSW, Lancome, and IKEA among other are using such software to increase their market share by retention of their customers & employees.

Impact of COVID-19 Pandemic on Global Loyalty Management Market

The COVID-19 pandemic could trigger further digitalization in society coupled with the reform of policies and rules to regulate online trade. The COVID-19 pandemic has made it clear that e-commerce can be a significant tool or solution for consumers in times of crisis, which can act as an economic driver, including for small businesses. The rising access of customers to multi-channels is offering immense opportunities to company’s to retain their customers by adopting such programs.

Segmental Outlook 

The global loyalty management market covers segments including type and end-user industry. Based on type, the market is segmented into customer loyalty, employee loyalty, and channel loyalty. Customer loyalty segment held major market share in 2020 based on type. The higher adoption of customer loyalty programs as compared to other type is a key factor contributing to the high share of this market segment. Based on end-user industry, the market is segmented into BFSI, travel & hospitality, retail, and other.

Global Loyalty Management Market Share by End-User Industry, 2020 (%)

Retail Held the Significant Share in the Market

The growth of this market segment is mainly driven by the growing competitiveness in the organized retail sector. The retailers have been increasingly implementing advanced tools & tactics to improve their customer experience. The loyalty management software enables brands to offer rewards and personalized experiences based on customer profiles across a wide range of digital touchpoints. Therefore, the high adoption of such software by companies operating in retail sector is driving the growth of this market segment. 

Regional Outlooks

Geographically, the global loyalty management market report is analyzed based on four major regions including North America, Europe, Asia-Pacific, and Rest of the World (RoW). The North American region is anticipated to have a significant share in this market owing to the significant presence of major retailers and growth in the e-commerce industry in the region. Besides, significant growth in the digitalization in the BFSI industry in the US is further anticipated to drive the demand for loyalty management market in the region. The high digitalization in the US BFSI sector is expected to drive the growth of this regional market.

Global Loyalty Management Market Growth, by Region 2021-2027

Asia-Pacific is projected to have a considerable share in the global loyalty management market

Asia-Pacific is estimated to grow at a considerable rate in the global loyalty management market. Countries in Asia-Pacific that are contributing to the market growth include China, India, and Japan. China is the largest contributor in Asia-Pacific loyalty management market owing to considerable technological advancement, high penetration of smartphones, and the presence of major digital platforms companies including Alibaba, Tencent, and Baidu. A large customer base and a huge untapped population in rural areas are also expected to provide a significant growth rate to the region. 

Market Players Outlook

Some of the key players operating in the global loyalty management market are Apex Loyalty, Clutch Holdings LLC, Fivestars Loyalty, Inc., Gold-Vision CRM, Goody Inc., iVend Retail, Kangaroo Rewards, and so on. These key players are focusing on adopting various growth strategies such as mergers & acquisition, partnership & collaboration, expansions, joint ventures, and product development among others to remain competitive in the marketplace. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global loyalty management market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.