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Increasing adoption of omnichannelandadvanced technologies to drive the loyalty managementmarket
The global loyalty managementmarket size is expected to grow from USD 7.6 billion in 2020to USD 15.5billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period.The growing need for enhancing customer experience andgaining competitiveadvantage 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 one of the most important 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 cloudsegment to grow at ahigherCAGR during the forecast period
Owing to an increasing awareness of the benefits of cloud-based solutions, the cloud deployment for loyalty managementsolution 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).
Large Enterprises segment todominate the market during the forecast period
Organizations with over 1,000 employees are categorized as large enterprises. The adoption of customer engagement solutions in large enterprises is higher as compared to small & medium enterprises, and this trend is expected to continue during the forecast period. Large enterprises deploy loyalty management solutions to improve customer retention rate, decrease customer attrition, boost customer re-purchase, and mostly enhance their customer experience and satisfaction. Large enterprises encompass distributed data related to customers scattered across different departments and are, hence, opting for robust loyalty management solutions to manage the loyalty lifecycle of a wider customer base and gain valuable insights from this data. Large enterprises are keen on investing in new and latest technologies such as AI, ML, and Big Data to automate the loyalty management process.
Asia Pacificto 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 managementsolution 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 managementsolutions.
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 managementmarket.
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 – 30%, Director Level – 35%, and Managers – 35%
- By Region: North America – 40%, Europe – 20%, APAC – 30%, and RoW –10%
The following key vendorsare profiled in the report:
- Aimia (Canada)
- Annex cloud (US)
- Apex Loyalty (US)
- Apptivo (US)
- Bond Brand Loyalty (Canada)
- Brierley+Partners (US)
- Capillary (Singapore),
- Comarch (Poland)
- Epsilon (US)
- FiveStars (US)
- Hashtag Loyalty (India)
- ICF Next (US)
- Kangaroo (Canada)
- Kobie Marketing (Russia)
- Loyalty Gator (Canada)
- LoyaltyLion (England)
- Maritz Motivation (US)
- Merkle (US)
- Oracle (US)
- Smile.io (Canada)
- SpotOn (US)
- TIBCO (US)
- Yotpo (US)
- SailPlay (US)
- Lacek (US)
- Paystone (UK)
The loyalty managementmarket has been segmentedbased onComponent (Software, Service(Professional Services(Consulting, Implementation, Support & Maintenance), Managed Services)), Organization Size (SMEs, Large Enterprises), Deployment Mode(On-Premises, Cloud), Operator (B2B, B2C), Application (Web Mobile), Vertical (BFSI, Aviation, Automotive, Media and Entertainment, Retail and Consumer Goods, Hospitality, and Others) 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 globalloyalty management market.
Reasons To Buy the Report
The report would helpmarket leaders/new entrants in the following ways:
- The report comprehensively segments the loyalty managementmarket 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.