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Loyalty Management Market to Surge at 19.9% CAGR till 2027; Increasing Adoption of Loyalty Platforms among Small & Medium Enterprises to Drive Growth

July 16, 2020 | Information & Technology

The global loyalty management market size is projected to reach USD 10.02 billion by 2027 owing to rising demand for cloud-based loyalty programs, shares Fortune Business Insights™ in its report, titled “Loyalty Management Market Size, Share and Covid-19 Impact Analysis, By Type (Customer Retention, Customer Loyalty, and Channel Loyalty), By Deployment (On-Premise and Cloud), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Industry (Banking, Finance, Security and Insurance (BFSI), IT and Telecommunications, Transportation, Retail, Hospitality, Manufacturing, Media & Entertainment, and Others) and Regional Forecast, 2020-2027. The report states that the market value stood at USD 2.47 billion in 2019 and is expected to register a CAGR of 19.9% from 2020 to 2027.


The COVID-19 outbreak is expected to have a positive impact on the loyalty management market growth during 2020 as lockdowns and social distancing have created barriers between brands and their customers. Loyalty platforms help break down these barriers by reaching customers through virtual means such as social media, which will spike their uptake in these troubled times.


PepsiCo Launches Maiden Cash-Back Loyalty Program


In September 2019, the food & beverage giant PepsiCo introduced PepCoin, the company’s first-of-its-kind cash-back program. The maiden program will enable customers to win cash rewards every time they buy a single-serve, uniquely marked PepsiCo drink and Frito-Lay snack together. The customers can then scan the marked code on their phones and as the points reach a certain number, $2 will be automatically deposited in their PayPal or Venmo account. With a vast of array of product combinations to choose from, PepsiCo aims at enlarging its customer base by enhancing their experience with the company’s multiple brands. Utilization of loyalty management solutions by large companies is a major trend gaining traction in this market.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/industry-reports/loyalty-management-market-101166


Attractive Loyalty Programs in Retail Industry to Accelerate Market Growth


The demand for loyalty programs and platforms in the highest in the retail industry, where retaining loyal customers is the top priority. As a result, loyalty management activities are conducted most energetically in this industry, with many retail giants offering attractive programs to strengthen their customer base. For instance, the Starbucks Rewards program allows loyal customers to order their personalized drink before reaching the store, thus skipping the waiting line. The sports brand, Reebok, allows members to accumulate points with every transaction and purchase and provides enhanced services commensurate to the value of the collected points. Wide availability of such loyalty programs is expected to augment the market in the near future.


Strategic Alignment of Interests among Players to Stimulate Intense Competition


Maintaining customer loyalty is a mammoth task as it is a complex mix of economics and psychology. Therefore, companies are forced to explore a plethora of options that are economically feasible and commercially attractive. This has led to the discovery of cross-alignment of interests between diverse companies, who are now joining forces to strategically expand their sales horizons and broaden their customer base.


Industry Development:



  • June 2019: Air France-KLM Group and Accor Group announced an innovative loyalty rewards program for their joint customers, the first-of-its-kind the European travel industry. Under the program, customers can earn flying miles on hotel stays and points for each flight and convert and redeem these rewards in a variety of ways.


List of Companies Profiled in this Market Report:



  • TIBCO Software, Inc.

  • Salesforce.com, Inc.

  • Maritz Motivation, Inc.

  • ICF International, Inc.

  • Epsilon Data Management, LLC.

  • Capillary Technologies

  • Blue Ocean Contact Centers, Inc.

  • Aimia, Inc.

  • VeriPark

  • Target Brands, Inc.

  • Oracle Corporation

  • Kobie

  • IBM Corporation

  • Comarch SA

  • Bond Brand Loyalty

  • Antavo


Further Report Findings:



  • The customer retention segment, which held a market share of 29.9% in 2019, is expected to grow steadily as businesses are focused on developing attractive loyalty programs to prevent switching of customers to other brands.

  • In North America, where the market size in 2019 stood at USD 0.81 billion, the main growth driver is expected to be the wide adoption loyalty management platforms by retail chains.

  • Growing consumer interest in cash-back offers and other discounts will enable the Middle East & Africa region to strengthen their hold on the loyalty management market share.


Table of Segmentation:


















































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD billion)



By Type




  • Customer Retention

  • Customer Loyalty

  • Channel Loyalty



By Deployment




  • On-Premise

  • Cloud



By Enterprise Size




  • Large Enterprises

  • Small & Medium Enterprises (SMEs)



By Industry




  • BFSI

  • IT and Telecommunications

  • Transportation

  • Retail

  • Hospitality

  • Manufacturing

  • Media & Entertainment

  • Others (Consumer Electronics, Grocery, Etc.)



By Region




  • North America (the U.S. and Canada)

  • Europe (the U.K., Germany, France, and Rest of Europe)

  • Asia Pacific (Japan, China, India, Southeast Asia, and Rest of Asia Pacific)

  • The Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico and Rest of Latin America)


Loyalty Management Market
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  • 2016-2018
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