Loyalty Management is defined as a strategy or tool by which the company acquires, engages, and retains its customers. Loyalty Management enables enterprises to enhance customer loyalty and increase their sales and revenue. Enterprises offer various loyalty programs such as reward points, discounts, offers, and gift vouchers across banking, grocery shopping, dining, etc., under loyalty management. Companies also arrange rewards to the customers on purchase. These rewards are designed for the customers based on their past purchases to influence them to make more purchases in the future. Sometimes, enterprises face challenges to manage all the loyalty programs across different locations based on standard rules to provide similar services for all customers. Therefore, software solution companies have introduced loyalty management software to manage these loyalty programs. This loyalty management software focuses on a customer-centric approach that leads to offering multiple loyalty programs for customer retention, cross-selling, and increasing the level of customer penetration. It also helps enterprises get customer feedback on different programs and offer a better solution/program. Hence, enterprises are highly adopting loyalty solutions to gain repetitive sales for brands.
B2C companies are exceedingly adopting loyalty management solutions as these companies are trying to provide the real-life benefits of customer experience management for their reputation. The increasing demand for android phones in B2C loyalty programs is also forcing vendors to develop more updated smartphones oriented programs. Seasonal discounts and offers along with free shipping, are also the major drivers for choosing loyalty programs, especially for the retailers. Hence, this creates a huge demand for loyalty management software during the festive seasons or special days.
The Global Loyalty Management Market is estimated to be USD 8 Bn in 2021 and is expected to reach USD 18.17 Bn by 2026, growing at a CAGR of 17.8%.
The Global Loyalty Management Market is witnessing significant growth, owing to the intensified competition, increasing customer acquisition cost, implementing a customer-centric approach across business, and rewarding schemes offered by organizations.
Stringent government rules and regulations affect the growth of the Global Loyalty Management Market. Government regional laws such as trading stamp laws, gift certificate laws, privacy laws, and data security may restrict the adoption of loyalty programs. The lack of awareness of the rewards of the loyalty programs challenges market growth. But, the growing investments in card loyalty systems and the rapid adoption of advanced technologies help increase the application of big data and machine learning that helps to provide opportunities for the Loyalty Management Market in the future.
- Rising Trend of Loyalty Programs
- Technological Advancement in Mobile Technology and Applications
- The Rise in the Number of Cardholders and the Use of Reward Points
- Growing Customer Preference for Personalization to Push Loyalty Program Adoption
- Inconsistent Customer Experience Feedback
- Stringent Government Regulations
- Lack of Awareness of the Benefits of Loyalty Programs
- Increased Investments in Loyalty System Technology
- Rising Application of Big Data and Machine Learning
- The Growing Importance of Customer Insights to Predict the Customer Intents
The Global Loyalty Management Market is segmented based on Solution, Verticals, Organization Type, Deployment, Type of Offering Capacity, Application, and Geography.
By Solution, B2C companies are increasingly adopting Loyalty management solutions to gain the real-life benefits of customer experience management for their bottom-line and reputation. Business-critical data can be accumulated with the help of loyalty management solutions to predict and influence the behavior of potential customers. The increasing penetration of smartphones in B2C loyalty programs is also forcing vendors to develop more enhanced smartphones oriented programs.
By Vertical, Banking and Financial Institutions are highly adopting the loyalty management software to strengthen their loyal customer base. Huge competition among the banking sector encourages banks to adopt loyalty solutions to maintain and increase their customer base. Mobile banking and internet banking applications are providing opportunities to gain customer’s attention and loyalty. In the developed banking sector, reward points/ loyalty points can be sent or received using mobile banking applications. Thus, providing an omnichannel view on customer rewards helps banks to achieve customer engagement.
By Organization Type, Small & Medium-Sized Enterprises is leading the market to adopt cloud-based loyalty solutions. The growing popularity of cloud-based loyalty platforms is the key driver of this segment's economic growth and employment generation. B2B (Business to Business) loyalty reward programs increase customer retention and acquisition and encourage small & medium-sized enterprises to use these management platforms.
By Deployment Type, the Cloud segment is estimated to dominate the market during the forecast period. The cloud-based solutions offer an ability to communicate with customers through system generated customized messages. The Cloud model supports tablets, social media, mobile phones, and other devices. With the help of the cloud, the customer data is analyzed and can be stored in the master database of the organization’s cloud. This will help the companies to build a comprehensive view of the customers. It also helps in keeping track of real-time updates regarding customer’s queries, response, and retention rates.
By Type of Offering Capacity, Loyalty Marketing is expected to lead the global market during the forecast period. It is a marketing strategy where companies offer rewards, discounts, perks, and incentives to the customers to build trust and retain the existing and new customers. Certain loyalty marketing programs in the market include software, rewards, and engagement tools that help attract new customers and inspire growth and loyalty from the existing customers. Loyalty marketing promotions help companies to prioritize their product lines and to increase their sales. Hence, it is an essential tool for businesses today to stand in a saturated market.
By Geography, North America has currently dominated the Loyalty Management Market. It will have the largest market share in the forecast period due to the increasing focus of major industry verticals, including BFSI, government, and others. Europe Loyalty Management market is estimated to be the second-largest market share, as the retail sector more influences this region. Asia-Pacific, excluding Japan, is also expected to have a high growth rate due to the increasing usage of mobile technologies and increased focus on a customer-centric approach to provide value-added services in the market.
Global Loyalty Management Market, By Solution
Global Loyalty Management Market, By Vertical
- Banking and Financial Institutions
- Retail & Consumer Goods
- IT & Telecommunication
- Media & Entertainment
Global Loyalty Management Market, By Organization Type
- Small & Medium-Sized Enterprises
- Large Enterprises
Global Loyalty Management Market, By Deployment
Global Loyalty Management Market, By Type of Offering Capacity
- Loyalty Marketing
- Loyalty Strategy Design
- Loyalty Management
- Analytics and Measurement
- Technology Platform Capabilities
- Service Delivery Capabilities
Global Loyalty Management Market, By Deployment
Global Loyalty Management Market, By Geography
- North America
- South America
- Asia Pacific
- The Middle East and Africa
Some of the companies covered in this report are AIMIA Inc., Bond Brand Loyalty Inc., IBM Corporation, Oracle Corporation, Comarch SA, SAP SE, Epsilon Data Management, LLC, ICF International Inc., Kobie Marketing, Inc., TIBCO Software Inc., MicroStrategy, Inc., Apex Loyalty, Sailplay, The Lacek Group Inc., Paystone Inc., Capillary Technologies, Annex Cloud, Brierley+Partners, Fidelity National Information Services, Inc. and Lumata Group.
The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance Score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.
Lions: Represents companies with a strong foothold in the market, with the highest market share, large investments in technologies, new products.
Bulls: Companies that are medium in size competing with their USPs, growing companies with proven market share.
Rabbits: Small companies but growing rapidly, constantly improving their offerings in the market.
Tortoise: Companies that are slow in growth, having a long legacy, and stable or negative in performance.
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- A complete analysis of the market including parent industry
- Important market dynamics and trends
- Market segmentation
- Historical, current, and projected size of the market based on value and volume
- Market shares and strategies of key players
- Recommendations to companies for strengthening their foothold in the market
1.1 Study Objectives
1.2 Market Definition
1.4 Years Considered
1.6 Key Shareholders
2. Research Methodology
2.1 Research Process
2.2 Data Collection and Validation
2.2.1 Secondary Research
2.2.2 Primary Research
2.3 Market Size Estimation
2.4 Assumptions of the Study
2.5 Limitations of the Study
3. Executive Summary
4. Market Overview
4.2 Market Dynamics
5. Market Analysis
5.1 Porter’s Five Forces Analysis
5.2 Impact of COVID-19
5.3 Ansoff Matrix Analysis
5.4 SWOT Analysis
6. Global Loyalty Management Market, By Solution
7. Global Loyalty Management Market, By Vertical
7.2 Banking and Financial Institutions
7.4 Retail & Consumer Goods
7.5 IT & Telecommunication
7.6 Media & Entertainment
8. Global Loyalty Management Market, By Organization Type
8.2 Small & Medium-Sized Enterprises
8.3 Large Enterprises
9. Global Loyalty Management Market, By Deployment
10. Global Loyalty Management Market, By Type of Offering Capacity
10.2 Loyalty Marketing
10.3 Loyalty Strategy Design
10.4 Loyalty Management
10.5 Analytics and Measurement
10.6 Technology Platform Capabilities
10.7 Service Delivery Capabilities
11. Global Loyalty Management Market, By Application
12. Global Loyalty Management Market, By Geography
12.2 North America
12.3 South America
12.4.5 Rest of Europe
12.5.5 Rest of APAC
12.6 Middle East and Africa
13. Competitive Landscape
13.1 Competitive Quadrant
13.2 Market Share Analysis
13.3 Competitive Scenario
13.3.1 Mergers & Acquisitions
13.3.2 Agreements, Collaborations, & Partnerships
13.3.3 New Product Launches & Enhancements
13.3.4 Investments & Fundings
14. Company Profiles
14.1 AIMIA Inc.
14.2 Bond Brand Loyalty Inc.
14.3 IBM Corporation
14.4 Oracle Corporation
14.5 Comarch SA
14.6 SAP SE
14.7 Epsilon Data Management, LLC
14.8 ICF International Inc.
14.9 Kobie Marketing, Inc.
14.10 TIBCO Software Inc.
14.11 MicroStrategy, Inc.
14.12 Apex Loyalty
14.14 The Lacek Group Inc.
14.15 Paystone Inc.
14.16 Capillary Technologies
14.17 Annex Cloud
14.18 Brierley Partners
14.19 Fidelity National Information Services, Inc.
14.20 Lumata Group
- AIMIA Inc.
- Bond Brand Loyalty Inc.
- IBM Corporation
- Oracle Corporation
- Comarch SA
- SAP SE
- Epsilon Data Management, LLC
- ICF International Inc.
- Kobie Marketing, Inc.
- TIBCO Software Inc.
- MicroStrategy, Inc.
- Apex Loyalty
- The Lacek Group Inc.
- Paystone Inc.
- Capillary Technologies
- Annex Cloud
- Brierley Partners
- Fidelity National Information Services, Inc.
- Lumata Group