United Kingdom Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2024 Update

According to the publisher, the loyalty market in the country is expected to grow by 10.2% on an annual basis to reach US$9.02 billion in 2024.

In value terms, the loyalty market in the country has recorded a CAGR of 11.7% during 2019-2023. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 8.9% during 2024-2028. The loyalty market in the country will increase from US$8.18 billion in 2023 to reach US$12.67 billion by 2028.

The adoption of loyalty and reward programs has increased in the United Kingdom over the last few years. Amid the rising inflation and interest rate environment, many shoppers have turned to loyalty programs as they look for deals and discounts. This trend is projected to continue further in 2024, subsequently driving the adoption of loyalty programs over the medium term.

With the rising demand, new firms and retailers are also planning to launch loyalty and reward programs in the United Kingdom. This, in turn, is expected to aid the competitive landscape and innovation in the loyalty programs market. Overall, the publisher maintains a robust growth outlook for the loyalty and reward programs industry in the United Kingdom over the next three to four years.

Brits are reliant on loyalty and reward programs to lessen the impact of economic pressure on their spending power

Despite inflationary pressure, spending has remained reliant across the United Kingdom, as majority of the consumers are leveraging loyalty programs to save money and boost their spending power during the year-end holiday season.

• According to a YouGov survey, commissioned by Commerce tools, 66% of the consumers were planning to utilize loyalty programs to save on their purchases in the United Kingdom. The trend is much higher among millennial consumers, whereas consumers aged 55 and above were least likely to use their reward accounts for purchases.

In response to the growing demand for loyalty programs, especially among young generation shoppers, many businesses are expected to increase their investment in loyalty programs to offer personalized offers. This will aid innovation and industry growth over the medium term in the United Kingdom.

New loyalty program launches to support industry growth over the medium term in the United Kingdom

Amid higher adoption and the fact that more and more consumers are seeking to leverage loyalty programs to lessen the impact of worsening economic conditions, the number of new program launches has been rising.

• JD Sports, the sports retailer, announced the launch of a loyalty app in the United Kingdom in October 2023. The program aims to deliver rewards to shoppers on purchases made across all of its stores in England, Wales, and Scotland. After the nationwide rollout in October 2023, the retailer is now planning to launch the loyalty program in more European nations in 2024.

In the United Kingdom, the trend of new loyalty program launches is projected to continue in 2024. Domino's, for instance, is planning to launch a loyalty scheme in the United Kingdom in 2024. In the United States, Domino’s has been able to increase the purchase frequency by 1.7 times in the first year of the launch. The QSR aims to replicate the success in the United Kingdom too. These new loyalty scheme launches will further support the growth of the industry over the short to medium-term perspective.

Regulators have launched an investigation to review loyalty scheme prices offered by supermarket

Loyalty program offerings have proved highly successful for supermarkets in the United Kingdom. By offering products at a much cheaper rate to their members, supermarkets like Tesco have reported strong growth in sales volume. Nearly, 21 million households have a Tesco Clubcard in the United Kingdom. For Tesco, these 21 million households are responsible for 80% of the sales. This shows the growing prominence of loyalty programs in the United Kingdom.

In the grocery industry, Tesco holds a significant 27.4% of the market share. More than 8,000 products are offered under its Clubcard Prices scheme. Sainsbury’s, on the other hand, offers 6,000 products under its loyalty scheme. The firm, second to Tesco, holds a market share of 15.2% in the grocery market. Although these supermarkets have been able to achieve higher sales and attract more shoppers, the offerings at reduced prices have also prompted the antitrust regulator to launch an investigation.

The Competition and Market Authority said that the growing usage of loyalty schemes meant that discounts were available only to members. The review, set to begin in January 2024, will consider whether it is fair to offer cheaper product prices only to loyalty card holders or not.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of loyalty programs in United Kingdom. Below is a summary of key market segments:

United Kingdom Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in United Kingdom

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

United Kingdom Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

United Kingdom Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

United Kingdom Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

Reasons to buy

• Gain insights into the United Kingdom loyalty spend market: The report provides a comprehensive overview of the United Kingdom loyalty spend market, including market size, growth drivers, and trends. This information can help businesses to make informed decisions about their loyalty program strategies.
• Benchmark your business against competitors: The report provides a competitive analysis of the United Kingdom loyalty spend market, which can help businesses to identify their strengths and weaknesses relative to their competitors. This information can help businesses to improve their loyalty program strategies and gain a competitive advantage.
• Stay up-to-date on the latest trends in the loyalty spend market: The report provides an overview of the latest trends in the loyalty spend market, such as the growing popularity of mobile-based loyalty programs and the increasing awareness of the benefits of loyalty programs among consumers. This information can help businesses to stay ahead of the competition and improve their loyalty program strategies.
• Make informed decisions about your loyalty program: The report provides a comprehensive overview of the factors to consider when developing a loyalty program, such as the target audience, the rewards and benefits, and the marketing and communication strategy. This information can help businesses to develop a loyalty program that is effective and successful.