Increasing adoption of omnichannel and multi-channel programs and advanced technologies to drive the loyalty management market
The global loyalty management market size is expected to grow from USD 6.8 billion in 2019 to USD 10.9 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 10.1% during the forecast period. The growing need for enhancing customer experience and gaining competitive advantage is a key growth factor for the loyalty management market. However, stringent government regulations may affect the growth of loyalty management market.
Customer loyalty is the most important differentiating factor among organizations offering similar products or services. It provides a crucial product and brand differentiation for organizations when a differentiation through price becomes secondary. Organizations know that loyal customers would promote their brand to new customers by sharing their positive experience. Effective customer loyalty programs ensure customers engaged and there is successful utilization of products and services. It increases customer retention, brand recall, and opportunities to carry out business with them. Hence, organizations with an efficient loyalty management strategy can record growth in revenue and profitability. Currently, customers are opting for simple, portable, and easy-to-use smart devices, such as smartphones; hence, mobile-based solutions for loyalty management are gaining traction.
Among deployment modes, the cloud segment to grow at a higher CAGR during the forecast period
Owing to an increasing awareness of the benefits of cloud-based solutions, the cloud deployment for loyalty management solution is expected to grow at a significant rage. The solution providers focus on the development of robust cloud-based solutions for their clients, as organizations have migrated to either a private or a public cloud. Moreover, cloud-as-a-service is enabling organizations to manage not only costs but also achieve better agility. As cloud-based solutions are budget-friendly and easy to deploy, it is highly preferred by Small and Medium-sized Enterprises (SMEs).
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Customer analytics segment to dominate the market by managed platform during the forecast period
Owing to a complete dependency on managed/outsourced services to manage customer loyalty, large enterprises continue to rely on vendors, such as Comarch, ICF Next, and Capillary. Analyzing customer behavior through their spending/shopping behavior has become a high requisite by retailers/business owners to understand customer needs and pitch them targeted offers. Thus, customer analytics is expected to record the highest growth rate during the forecast period.
Asia Pacific to grow at the highest CAGR during the forecast period
Organizations across the APAC opting for omnichannel marketing to achieve customer loyalty. Advancements of mobile technology and applications in APAC countries, such as Japan, China, and India. Travel and hospitality, retail, and banking are the major verticals driving the loyalty management market in APAC. China, Japan, and Australia have a high adoption rate of the loyalty management solution and services that resolve the complex queries by customers. APAC countries have enormous potential to grow further, due to the fast adoption of technologies. To enhance their growth and broaden the customer base, organizations have started implementing loyalty management solutions.
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, innovation and technology directors, and executives from key organizations operating in the loyalty management market.
The following is the breakup of the profiles of primary participants:
- By Company: Tier 1 – 35%, Tier 2 – 40%, and Tier 3 – 25%
- By Designation: C-Level – 65% and Director Level – 35%
- By Region: North America – 30%, Europe – 35%, APAC – 25%, and RoW – 10%
The following key vendors are profiled in the report:
- IBM (US)
- Comarch (Poland)
- Aimia (Canada)
- SAP (Germany)
- Oracle (US)
- Bond Band Loyalty (Canada)
- Tibco (US)
- Salesforce (US)
- Maritz Holdings Inc. (US)
- Capillary (Singapore)
- ICF Next (US)
- Antavo (Singapore)
- Blue Ocean (Canada)
- Kobie Marketing (US)
- Epsilon (US)
- The loyalty management market has been segmented based on delivery type (standalone program and managed platform), enterprise size, deployment, vertical (BFSI, aviation, automotive, retail and consumer goods, media and entertainment, and hospitality) and region. A detailed analysis of the key industry players has been undertaken to provide insights into their business overviews; services; key strategies; new service launches; partnerships, agreements, and collaborations; business expansions; and competitive landscape associated with the global loyalty management market.
Reasons To Buy the Report
The report would help market leaders/new entrants in the following ways:
- The report comprehensively segments the loyalty management market and provides the closest approximations of the revenue numbers for the overall market and its subsegments across major regions.
- It would help stakeholders understand the pulse of the market and provide information about the key market drivers, restraints, challenges, and opportunities.
- The report would help stakeholders understand their competitors better and gain more insights to enhance their positions in the market.
- The competitive landscape section includes the competitor ecosystem, new service developments, partnerships, and acquisitions.