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.
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.
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.
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.
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,
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 Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
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