SAN FRANCISCO, Aug. 10, 2021 /PRNewswire/ -- The global loyalty management market size is anticipated to reach USD 17.65 billion by 2028, registering a CAGR of 12.3% from 2021 to 2028, according to a new study conducted by Grand View Research, Inc. The loyalty programs enterprises are running aggressively as part of the marketing strategies to encourage customers to stick to the brand and prevent them from switching to another are expected to drive the growth of the market. Loyalty programs envisage rewarding customers in the form of cashback, rewards points, gift cards, and discounts, and others for their purchases. They help enterprises in retaining customers and subsequently play a vital role in strengthening the customer base and augmenting sales.
Key Insights & Findings:
- The software segment dominated the market in 2020 in the overall market with a share of 50%
- The cloud-based segment is expected to grow significantly over the forecast period as cloud-based deployment offers various benefits, such as cost-saving and agility
- The large enterprise segment dominated the market in 2020 as large enterprises belonging to various industries and industry verticals emphasized launching loyalty programs as part of the efforts to retain customers
- The growth of the Asia Pacific regional market can be attributed to the rapid economic development of emerging economies, such as India and China
Read 140 page market research report, "Loyalty Management Market Size, Share & Trends Analysis Report By Component, By Software, By Deployment, By Organization, By Vertical, By Region, And Segment Forecasts, 2021 - 2028", by Grand View Research
The growing adoption of advanced solutions that can track consumer behavior and monitor customer scores, and subsequently help in enhancing customer engagement is expected to drive the growth of the market over the forecast period. As the competition among brands intensifies, brands are aggressively pursuing various strategies, including running loyalty programs, as part of the efforts to satisfy customers and prevent them from switching to other brands, thereby contributing to the growth of the market. Continued introduction of various digitalized payment options to enhance consumer experience also bodes well for the growth.
Cloud-based deployment of loyalty management programs is expected to gain traction over the forecast period. Cloud-based deployment helps organizations in better managing their expenses and saving on the costs incurred on having a dedicated IT infrastructure while ensuring agility. The cloud-based deployment also facilitates real-time tracking of customer queries, retention rates, and response rates. Storing customer data on the cloud for further analysis can potentially help organizations in building a comprehensive view of the overall customer base.
The retail and consumer goods segment dominated the market in 2020. Retailers and consumer goods brands often embark upon various efforts to improve brand loyalty and encourage repetitive purchases. Rewarding customers with loyalty rewards in the form of gifts, discounts, certificates, and reward points, particularly helps in enhancing customer relationships. Hence, retailers and consumer goods brands are aggressively adopting loyalty management software.
Retaining the existing customers while simultaneously acquiring new customers is of paramount importance for incumbents of various industries and industry verticals. Telecom operators particularly put a strong emphasis on building trust and affinity with their subscribers by enhancing value-based services. Incumbents of the IT and telecommunications industry particularly opt for loyalty management solutions to retain their customers. North America accounted for the largest share of the market in 2020. North America is home to developed economies, such as the U.S. and Canada, which are known for aggressive adoption of the latest and advanced technologies, such as Artificial Intelligence (AI), cloud computing, and data analytics. A strong and well-developed IT infrastructure deployed in the region also bodes well for aggressive adoption of advanced loyalty management solutions. Customers in North America typically favor free shipping, cashback, and discounts as loyalty rewards. People are widely using credit and debit cards in the stores highly adopted loyalty programs in this region. The customers favor monetary offerings such as free shipping, cashback, discounts in this region. Asia Pacific is expected to register the highest CAGR over the forecast period as retailers in the region are focusing aggressively on enhancing customer experience. China is particularly dominating the regional market.
Grand View Research has segmented the global loyalty management market based on component, software, deployment, organization, vertical, and region:
- Loyalty Management Component Outlook (Revenue, USD Million, 2018 - 2028)
- Loyalty Management Software Outlook (Revenue, USD Million, 2018 - 2028
- Channel Loyalty
- Customer Loyalty
- Customer Retention
- Loyalty Management Deployment Outlook (Revenue, USD Million, 2018 - 2028)
- Loyalty Management Organization Type Outlook (Revenue, USD Million, 2018 - 2028)
- Small and Medium Enterprise
- Large Enterprise
- Loyalty Management Vertical Outlook (Revenue, USD Million, 2018 - 2028)
- IT & Telecommunication
- Media & Entertainment
- Retail & Consumer Goods
- Loyalty Management Regional Outlook (Revenue, USD Million, 2018 - 2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of Key Players of Loyalty Management Market
- ICF Next
- Lacek Group
- Oracle Corporation
- SAP SE
Check out mor studies related to the Global IT Services & Applications Industry, conducted by Grand View Research:
- Machine Learning Market – The global machine learning market size was valued at USD 6.9 billion in 2018 and is anticipated to register a CAGR of 43.8% from 2019 to 2025. Emerging technologies such as artificial intelligence are changing the way industries and humans work.
- Artificial Intelligence Market – The global artificial intelligence market size was valued at USD 62.35 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 40.2% from 2021 to 2028.
- U.S. Customer Relationship Management Market – The U.S. Customer Relationship Management market size was valued at USD 25.8 billion in 2018 and is anticipated to register a CAGR of 14.0% from 2019 to 2025.
Gain access to Grand View Compass, our BI enabled intuitive market research database of 10,000+ reports
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Corporate Sales Specialist, USA
Grand View Research, Inc.
Toll Free: 1-888-202-9519
Email: [email protected]
Follow Us: LinkedIn | Twitter
SOURCE Grand View Research, Inc.