Global Loyalty Programs Market: Regional Overview; Value Chain Analysis; Price Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model, Key Factors Influencing the Quotation; Key Supplier Analysis, 2024-2032

Loyalty Programs Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Loyalty Programs market reached a value of about USD 177 billion in 2021. The industry is projected to grow at a CAGR of around 3% in the forecast period of 2022-2027 to reach a value of about USD 211 billion by 2027.

The global Loyalty Programs industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The growing focus on consumer satisfaction is driving the demand in the sector. North America is the highest category spender by region, driving the need for the Loyalty Programs industry.

Industry Definition and Segmentation

Retailers and other companies sponsor loyalty programmes that give prizes, discounts, and other unique incentives to recruit and keep consumers. They encourage repeat business by rewarding customers for sticking with a retailer or brand. It is a marketing tactic that enables customers to keep shopping at or using the services of a company that is part of the programme. The Loyalty Programs industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The North American Region is Driving the Growth of the Industry

North America holds a significant share in the industry due to developed economies like the United States and Canada, which adopted the latest instruments in domains like customer data analytics and real-time reporting, and advanced technologies like machine learning and AI, allowing them to excel in the market. The United States has the most loyalty programme membership, and most people have signed up for loyalty programmes in the retail, travel, or hospitality industries.

The market is being driven by the increased focus on efforts on client acquisition and retention activities across the world. Existing customers are kept, while new customers are obtained and converted into committed customers through customer retention. Due to increased competition, growing client acquisition costs, integration of a customer-centric strategy throughout the company, and incentive schemes given by enterprises, the Global Loyalty Management Market is witnessing substantial expansion. In addition, features like seasonal discounts and incentives and free delivery are also vital in these programmes. As a result, there is a high demand for loyalty management software throughout the holiday season or on special days. Other factors propelling the market growth include changing end-user demographics regularly, increased organisation spending on loyalty programmes, strict government laws and regulations, and quickly developing uses of big data and machine learning.

However, the lack of awareness regarding these programmes will likely hinder market growth.

Best Procurement Practices

The global Loyalty Programs industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major international Loyalty Programs regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

A loyalty programme typically entails the program's operator creating an account for a customer of a participating business and then issuing the customer a loyalty card or rewards card, which can be a plastic or paper card that looks like a credit card and identifies the cardholder as a programme participant. Although some cards are chip cards or proximity cards, they may have a barcode or magstripe to simplify scanning. Customers often receive a discount on their current purchase or an allocation of points that they may use for future purchases when they produce a card. As a result, the card serves as the visual mechanism for enacting a two-part tariff, as defined by economists.

Various Initiatives by the Suppliers, Further Boosting the Loyalty Programs Market

The industry is aided by the developments and rising demand for competitive distinctiveness. Suppliers invest in analytics and business intelligence technologies to tailor the programme for suitable rewards and incentive schemes to increase programme membership, driving up demand. The use of mobile applications to develop a customer loyalty programme; when a consumer purchases a product, they will receive benefits such as points, exclusive offers, discounts, and early access through the applications is furthering the industry's expansion. Significant data principles ushered in a new generation of Customer Relationship Management (CRM) methods. Extensive data analysis aids firms in describing client behaviour, understanding their habits, developing appropriate marketing plans, identifying sales transactions, and establishing long-term loyalty relationships, thus augmenting the market.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Loyalty Programs Industry Report

• BI Worldwide
• Aimia Inc.
• Maritz Motivation Inc.
• The Collinson Group Limited
• Blackhawk Network Holdings Inc.

Market Landscape

The market is fragmented; companies focus on delivering targeted and straightforward solutions to attract purchasers, with innovation being the primary need of consumers. With the market's significant influence on innovation, solution suppliers enjoy a competitive advantage with unique offers. Companies are trying to get the first-mover advantage while a large portion of the market remains untapped. As a result, market competition is mild, and it is likely to expand in the future. Acquisition, regional growth, product creation, strategic alliances, and cooperation are some of the business methods used by these companies to extend their market position.

Key Initiatives by Companies

• Oracle purchased CrowdTwist, a significant supplier of cloud-native consumer loyalty solutions, in June 2021 to enable marketers to give tailored customer experiences.
• Comarch introduced their new microsite, loyalty marketing cloud, in April 2021. Customers may browse Comarch's offers on the new site, created to provide the utmost user-friendly experience with better navigation and functionality.