Global Loyalty Programs Market Report 2022: Market is Expected to Grow by 12.6% to teach $142.63 Billion in 2022 - Forecasts to 2026
Friday, May 27, 2022
DUBLIN, May 19, 2022 /PRNewswire/ -- The "Global Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
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According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market is expected to grow by 12.6% on annual basis to reach US$ 142636.8 million in 2022.
In value terms, the Loyalty Programs Market in Global has recorded a CAGR of 11.8% during 2017-2021. The Loyalty Programs Market in Global will continue to grow over the forecast period and is expected to record a CAGR of 12.2% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 126639.8 million in 2021 to reach US$ 225907.9 million by 2026.
Loyalty and reward programs are gaining market share in the Asia Pacific region. A large population, rapid digitalization, and consumers' inclination towards rewards programs primarily supported the strong market growth in this region.
In the last two to three years, key economies such as India, China, Indonesia, and Singapore witnessed substantial demand for loyalty and rewards programs. Moreover, rising fintech start-ups are also expanding their market share through innovative product launches in this category. Consequently, the publisher expects the market to record strong growth in 2022.
In India, loyalty and reward programs have been used as strategies by brands and organizations, especially in the hospitality, tourism, aviation, and retail sectors. Presently, with the global economic slowdown, businesses, in order to retain their customers and ensure profit generation, have adopted customer relationship management techniques with a more aggressive approach to sustain profitable long-term relationships.
Therefore, loyalty programs are gaining popularity due to their ability to establish relationships with customers, drive product usage, repeat sales, and, most significantly, customer retention in India.
Credit card providers are partnering with grocery stores to launch loyalty programs
With the shift in lifestyle preferences and increasing disposable income, consumers are looking for premium products and experiences. Therefore, premium cards are being launched, signifying a significant share in overall spending, which is an indication of consumers' increasing affinity toward the premium lifestyle.
-- In March 2022, SBI Card entered into a partnership with an Indian
premium grocery store brand, Nature's Basket, to launch 'Nature's Basket
SBI Card.'
-- Through this card (all variants), customers will earn up to 20 Reward
Points on every Rs. 100 spent at Nature's Basket stores and up to 10
Reward Points on every Rs. 100 spent on dining, movies, and
international travel.
-- Together with this, the cardholders will be able to enjoy benefits such
as complimentary BookMyShow movie tickets, Taj gift vouchers, Nature's
Basket welcome gift vouchers, and also access to higher tiers of the
Nature's Basket loyalty program.
-- Additionally, Nature's Basket SBI Card Elite offers customers exclusive
check-out counters at Nature's Basket stores and concierge assistance to
address customers' requirements around flower delivery, gift delivery,
and online doctor consultation.
The publisher expects that since India's premium consumer segment is showing strong potential for growth, the exclusive benefits for the SBI card loyal customers are likely to be retained by the company over the longer run.
In Europe, the loyalty and rewards market witnessed significant growth in the last two years. Changes in demand, inability to cope with qualitative development and growth in supply, customized and unpredictable purchasing and consumption behavior have compelled many businesses to develop strong competitive advantage against their competitors. Notably, loyalty and rewards has emerged as a tool to identify, maintain and expand market share in the European region in the last eight quarters.
Financial firms are entering into strategic partnerships to create customer loyalty program solutions
Amid the growing demand for innovative loyalty programs among consumers in the United Kingdom, financial firms are entering into strategic partnerships to create customer loyalty program solutions.
-- In March 2022, Lloyds Banking Group, one of the leading financial
service providers, announced that the firm had entered into a strategic
collaboration with Bink, a loyalty app in the United Kingdom. The
loyalty solution developed in collaboration will be rolled out to the
retail banking customer of Lloyds later in 2022, which will therefore
allow retailers to connect their loyalty programs to millions of
customers.
-- Notably, the technology developed by Bink links the payment cards of
consumers to participating retailers' loyalty and customer engagement
programs. This ensures that customers get rewarded by retailers every
time they make purchases with their cards. This strategic partnership
between Lloyds and Bink is expected to further assist the growth in the
number of loyalty program customers over the next four to eight
quarters.
-- In January 2022, Lloyds Banking Group also acquired a minority stake in
Bink when the loyalty app start-up raised a funding round to further
assist its growth in the United Kingdom. The investment from Lloyds in
Bink follows the US$12.9 million funding round from Barclays in 2019.
The publisher expects more firms, especially in the financial sector, to enter into strategic collaborations to launch innovative loyalty program solutions for customers in the United Kingdom over the next four to eight quarters. Additionally, the publisher also expects loyalty start-ups to raise funding rounds from the short to medium-term perspective as they continue to expand and grow their market share.
The adoption of loyalty and reward programs has been on a constant rise in the Africa & Middle East region over the two to three years. Several start-ups and global loyalty players are offering their innovative products to capture a larger market share in the region. Moreover, the adoption from different industries is also on the rise as more and more consumers are demanding customized rewards programs.
Over the last three to four years, the customer loyalty landscape has developed rapidly across the United Arab Emirates (the UAE). Before the global pandemic outbreak, the country was witnessing a higher per capita income and was gearing up with its increasing population of foreign workers, growing tourism industry, and a large number of development projects. However, the impact of the Covid-19 outbreak, resulting in the closure of offline stores, brought major changes to the economy.
During the period of the global pandemic, an increasing number of consumers changed their shopping behavior. According to the Global Loyalty and Rewards Market Survey, nearly 95% of the consumers started to explore different brands and stores even for their regular day-to-day purchases. This resulted in a number of brands revisiting their loyalty and rewards programs initiatives to stay relevant in testing times of the global pandemic outbreak.
Online marketplaces are launching AI and blockchain-enabled rewards platforms in the UAE
Through innovative loyalty and rewards programs that are powered by artificial intelligence and blockchain technology, online marketplaces in the country are looking to disrupt the UAE retail landscape.
-- In February 2022, Aladdin.life, the online marketplace for mobile and
broadband services, announced that the start-up is expanding to a smart,
multi-sector, AI, and blockchain-enabled rewards and shopping platform.
Notably, the new rewards platform offers customers 100% value back in
the form of discounts on its online Reward store.
-- For every AED 1 spent on the purchase of telecom products and services
from Aladdin.life or its retail partner network, customers get a
discount of AED 1 on the Aladdin Reward store. Notably, the full value
offered to the customers is in the form of Aladdin Reward Coins.
Customers can trade these coins for discounts when shopping from the
Reward store, which features consumer electronic products from different
brands and retailers.
The publisher expects more such rewards program launches over the next four to eight quarters as online marketplaces seek ways to acquire new customers and drive incremental revenue in the UAE.
The Latin American loyalty and rewards market recorded significant growth despite economic challenges in the last two to three years. Demand for rewards programs increased considerably in countries such as Brazil, Mexico, and Argentina during the pandemic period. This was primarily due to with rapid digitalization of the payment systems; many fintech start-ups launched their loyalty and rewards programs to expand their target market. Moreover, growing online retailing also created awareness and demand for these products in the region.
In Mexico, some of the most successful customer loyalty and rewards programs are engaging and retaining customers by creating an emotional connection to the brand while making participation in the program effortless. Over the last three to four years, the strategy of offering loyalty and rewards programs seems to be paying off for brands and businesses as they continue to compete with declining foot traffic and profit margins in the country.
With the growing traction towards loyalty and rewards programs among consumers in Mexico, an increasing number of businesses are planning to invest more in their customer loyalty programs. According to the Global Loyalty and Rewards Market Survey, around 65.5% of the businesses were planning to invest more in their customer loyalty program. Moreover, many businesses were willing to spend substantial amount on loyalty technologies compared to the previous year.
Regional loyalty program providers are seeking to expand their footprint in Mexico
As the loyalty and rewards programs industry continues to mature and grow in Mexico, regional and global providers are seeking to expand their footprint in the country to gain a market share for themselves. For instance,
-- In April 2022, Leal, the Colombian start-up that offers loyalty programs
in the Latin American region, announced that the firm had raised US$10
million in its Series A funding round, which the firm is planning to use
for launching its operations in Mexico. With the newly infused capital,
the firm is planning to forge alliances with more than 1,000 retailers
and onboard 3 million consumers by the end of 2022.
-- Notably, the firm is targeting retailers who are looking to better
understand their customers through consumer data analysis technology.
Through an API, Leal connects to billing and point of sale payment
terminals, thereby capturing important consumption habits and other
data. This is then converted into analytics and business intelligence,
helping retailers increase their business growth.
Scope
Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
-- Loyalty Schemes
-- Loyalty Platforms
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
-- Point-based Loyalty Program
-- Tiered Loyalty Program
-- Subscription Loyalty Program
-- Perks Loyalty Program
-- Coalition Loyalty Program
-- Hybrid Loyalty Program
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
-- In-Store
-- Online
-- Mobile
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
-- Retail
-- Financial Services
-- Healthcare & Wellness
-- Restaurants & Food Delivery
-- Travel & Hospitality (Cabs, Hotels, Airlines)
-- Telecoms
-- Media & Entertainment
-- Others
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
-- Diversified Retailers
-- Department Stores
-- Specialty Stores
-- Clothing, Footwear & Accessories
-- Toy & Hobby Shops
-- Supermarket and Convenience Store
-- Home Merchandise
-- Other
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
-- Card Based Access
-- Digital Access
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
-- B2C Consumers
-- B2B Consumers
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
-- Software
-- Services
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
-- Custom Built Platform
-- Off the Shelf Platform
For more information about this report visit https://www.researchandmarkets.com/r/nf47qe
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