United States Loyalty Programs Market Databook 2023: 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics and Consumer Demographics

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Jul 31, 2023, 14:30 ET

DUBLIN, July 31, 2023 /PRNewswire/ -- The "United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook 2023" report has been added to ResearchAndMarkets.com's offering.

The loyalty market in United States is expected to grow by 12.3% on annual basis to reach over US$27.5 billion in 2023.

In value terms, the loyalty market in United States has recorded a CAGR of 12.8% during 2018-2022.The loyalty market in United States will continue to grow over the forecast period and is expected to record a CAGR of 11.7% during 2023-2027. Loyalty market in the country will increase from US$24.5 billion in 2022 to reach over US$42.8 billion by 2027.

The demand for value-offering loyalty and rewards programs have been on the rise, amid the current macroeconomic environment. Cost-conscious consumers are turning to loyalty programs offered by retailers across industry verticals to receive more value for each dollar spent. This trend is projected to further continue in 2023, as product prices continue to grow in the United States.

In 2023, innovation is also expected to aid the industry growth, as more and more brands are leveraging non-fungible tokens to power their loyalty and reward programs. The expanding Web3 ecosystem has opened up new paths to customer loyalty and more businesses are projected to leverage the technology to fuel the growth of their loyalty programs from the short to medium-term perspective.

Loyalty programs are driving repeat purchases for retailers boosting their sales growth in the United States

In the wake of the rising inflation and subsequent decline in consumers' discretionary spending, retailers are seeking to leverage loyalty programs as a tool to boost consumer stickiness and drive sales and revenue growth. In the grocery space, retailers have experienced widespread success in driving repeat purchases through loyalty programs.

In January 2023, Albertsons Companies, the grocery giant acquired by competitor Kroger, reported that the digital sales for the firm increased 33% year over year in Q4 2022. During the same period, loyalty program members for the firm increased by 16% to 33 million. Albertsons Companies have attributed the surge in digital sales to its loyalty program, which has driven repeat purchases in the face of stiff online grocery competition.
Kroger, which acquired Albertsons Companies in October 2022, also highlighted the loyalty and data-informed personalization capabilities of Albertsons Companies, as one of the key advantages of acquiring the grocery giant. With the demand for loyalty programs growing, Albertsons Companies is expected to further experience growth in its loyalty memberships in 2023. This will aid the industry's growth from the short to medium-term perspective. The industry will also receive growth support from retailers that are launching new loyalty programs in the United States.
True Religion, a popular denim and sportswear brand, recently announced the introduction of its loyalty program, True Fam, in March 2023. This program is designed to provide customers with personalized experiences, exclusive perks, and additional savings. To create the loyalty program, True Religion partnered with Lexer for CDP data and Yotpo, a platform that specializes in loyalty strategies.

In 2023, more and more retailers, across product categories, are expected to launch innovative loyalty programs to provide more value to their customers, in the wake of rising inflation and subsequent decline in discretionary spending.

The new reward program launched by Starbucks will lead to higher profit margins in 2023

Many of the brands, across industry verticals, have been revamping their loyalty and rewards programs to make them more attractive for existing and potential new members. However, some brands are also making changes to improve margins, leading to higher profits in 2023.

Starbucks, for instance, made changes to its rewards program in February 2023. Under the new reward program, members are required to earn more points to redeem freebies such as coffee, lattes, and teas, among others. This means that customers will have to buy more to earn freebies. This emphasizes higher profits for Starbucks, which has attained widespread success with its loyalty and rewards programs over the years.

With 28.7 million members, Starbucks Rewards members accounted for 55% of the total sales in the United States in Q4 2022. Consequently, the new reward program might aid the revenue growth for Starbucks over the next few quarters in 2023, if the economy continues to face macroeconomic pressure.

Loyalty providers are raising capital rounds to deliver engaging loyalty programs in the United States

Amid the surge in demand for loyalty programs, providers are seeking to raise venture capital and private equity funding to further innovate their services and accelerate their growth in the United States.

In January 2023, WEEDAR, the loyalty and distribution ecosystem for cannabis brands, announced that the firm had raised US$1.5 million in a seed funding round from a private investor. The firm is planning to use the capital for improving its existing set of features and scaling the company.

From the short to medium-term perspective, more such loyalty and reward program providers are expected to raise venture capital and private equity funding, which will subsequently aid innovation and competitive landscape in the United States market over the next three to four years.

Report Scope

The report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

Below is a summary of key market segments:

United States Retail Sector Spend Value Trend Analysis

Ecommerce Spend
POS Spend

United States Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in United States

United States Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

Loyalty Schemes
Loyalty Platforms

United States Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

Points programs
Tier-based programs
Mission-driven programs
Spend-based programs
Gaming programs
Free perks programs
Subscription programs
Community programs
Refer a friend program
Paid programs
Cashback programs

United States Loyalty Spend Market Size and Future Growth Dynamics by Channel

In-Store
Online
Mobile

United States Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

Seller Driven
Payment Instrument
Others

United States Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment

United States Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by online

Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment

United States Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment

United States Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

Retail
Financial Services
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Telecoms
Media & Entertainment

United States Loyalty Spend Market Size and Future Growth Dynamics by Retail

Diversified Retailers
Department Stores
Specialty Stores
Clothing, Footwear & Accessories
Toy & Hobby Shops
Supermarket and Convenience Store
Home Merchandise

United States Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

Card Based Access
Digital Access

United States Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

B2C Consumers
B2B Consumers

United States Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

Free
Free + Premium
Premium

United States Loyalty Platform Spend Market Size and Future Growth Dynamics by Software

Analytics and AI Driven
Normal CRM

United States Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

In House
Third Party Vendor

United States Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

Cloud
On-Premise

United States Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

Software
Services

United States Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms

Custom Built Platform
Off the Shelf Platform

United States Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

By Age Group
By Income Level
By Gender

For more information about this report visit https://www.researchandmarkets.com/r/l1saxi

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