Loyalty Management Market Size, Share, Trends, COVID-19 impact and Growth Analysis Report - Industry Forecast (2022 to 2026)

  • Category : Information Technology |
  • Report Code : VMR-40726 |
  • Pages: 195 |
  • Published : 2021-05 |
  • Region: Global |
  • Avilable Format : format excel,ppt, Pdf |
  • Share:

Loyalty Management Market Size (2022 to 2026)

The global Loyalty Management Market size is estimated to be valued at USD 8.8 billion in 2021 to reach USD 18.8 billion by 2026 registering a CAGR of 16.6% during the forecasted period.

Industry Overview
Loyalty is closely correlated with customer experience. Developing technologies like Machine Learning and Artificial Intelligence provide different potentials for transforming loyalty management solutions over the forthcoming years. Loyalty management uses efficient and calculated activities for selecting, managing, relating, and controlling the buyer's behavior among customers.

Loyalty management enacts with maturing rewards for previous purchases of customers accompanying incentives targeted at future buying. Furthermore, a loyalty management scheme involves operational parameters like sponsoring possibilities, types of transactions, and program design. Moreover, loyalty management comprises various value parameters like recovery start, profitable cost, and choices for redemption.

Market Drivers
Factors that drove the market include growing demand for analytics, digital reward program, and business intelligence. Also, the loyalty services demand across hospitality sectors, retail, and financial services is boosting the market development. The demand for loyalty management software is escalating with the rise in the use of digital cards for managing all the loyalty programs digitally.

The rising focus on cross-selling and customer maintenance by major end-users involving BFSI, healthcare, and others develop the market growth. Furthermore, the burgeoning adoption of the omnichannel and multichannel program, advanced technologies, and surging desire for competitive differentiation uphold market growth. The applications of advanced technologies like Big Data and Machine Learning, growing investments in loyalty system technology, and the customer significance is rising the insights to forecast the intent of the customer provide ample opportunities.

Introducing customized and personalized loyalty programs strengthen the market position of the key players.

Market Restrains
However, the absence of awareness regarding loyalty programs restrains the loyalty management market.

Recent Market Developments

  • On September 20, 2020, Epsilon launched Epsilon PeopleCloud Loyalty Essentials providing key capabilities and services available in Epsilon PeopleCloud Loyalty.
  • On July 20, 2021, Bond launched a new loyalty paradigm.

Segment Analysis
As per the research reports, the global loyalty management market is categorized and sub-categorized based on the component, organization size, deployment type, operator, and end-user.

Loyalty Management Market - By Component

  • Software

  • Service

  • Professional Services

  • Consulting

  • Implementation

  • Support & Maintenance

  • Managed Services

The software component commands the loyalty management market with the highest share during the foretold period. Because of the capability to identify the potential repeat and loyalty customers of the brands, the demand for the software is hiking. The software component segment assists in offering customized rewards based on the customer buying behavior and purchase history. 

The service segment is projected to register a quick growth with the highest CAGR pace. The services segment helps the end-users to delimit the overall costs with rising revenues and developing performance of the business. In addition, the organization's focus on customer experience and customer loyalty is magnifying the segment growth.

Loyalty Management Market - By Organization Size

  • SMEs
  • Large Enterprises
    The large enterprise's organization size is spearheading the segment of the market. large enterprises bring potential publicity to the brands and develop the market position. Large enterprises are subsequently investing in loyalty solutions with high purchasing frequency and a huge customer base.
    Small and Medium Enterprise is achieving maximum growth owing to growth in cloud-based affordable solutions. 

Loyalty Management Market - By Deployment Type

  • On-Premises

  • Cloud

The on-premise deployment type held the market's largest share in 2020. The segment contributes to more than 51% of the share in terms of revenue. Most of the companies are still choosing on-premise deployment of loyalty management solutions following rising issues for data security and privacy protection.

The cloud deployment segment is projected to record the highest CAGR during the foretold period. The segment potentially supports numerous channels and devices like social media, smartphones, and tablets. The cloud-based deployment is gaining achievement due to the benefits like expandability, flexibility, scalability, and integration. 

Loyalty Management Market - By Operator

  • B2B

  • B2C

The B2C operator segment evaluates to grow with the highest share of 7.7% CAGR rate. B2C companies are highly adopting loyalty management solutions hunting to acquire the real-world advantages of customer experience management. Major key players induced to elevate better-quality smartphone-oriented programs, as smartphones have become more common in B2C loyalty programs.

Loyalty Management Market - By End-User

  • BFSI

  • Aviation

  • Automotive

  • Media and Entertainment

  • Retail and Consumer Goods

  • Hospitality

  • Others (education, healthcare, and telecom)

By end-user, the retail and consumer goods segment has dominated the market with the highest revenue share in 2020. The aggressive contest across the retail sector is mounting the adoption of customer rewarding solutions.

The BFSI segment is promised to record the largest CAGR growth rate during the foreseen period. The mushrooming battle between the banking sectors inspires the banks to adopt loyalty management solutions to extend and maintain their customer base. Internet banking and mobile banking platforms open opportunities in gaining customers' attention and devotion.

The hospitality industry is considerably executing the rewarding solution to surging customer reappearance by providing rewards based on their interests, expenses behavior, and choices.

The Aviation industry is set to record the highest CAGR during the foretold period. The airline industry invests highly in technology to decrease prices and develop customer satisfaction. The airline industry is fueling the adoption of advanced loyalty management solutions by the airline to achieve best customer retention.

Regional Analysis
The loyalty management market in North America is spearheading the region globally. The extensive use of credit and debit cards by the customers across the stores and highly adopted loyalty programs fuel the market.

The U.S and Canada are the developing economies across the region. In the U.S, there are over 200 subscription video-on-demand platforms and companies are turning to common loyalty rewards programs. 75% of the adults in the U.S take part in customer loyalty programs, provided by credit card companies, retailers, and hotel chains.

Europe is second in position in the loyalty management market with the highest share in terms of revenue. The region's share owes to the increasing influence of the retail sector. The increase in the number of small-scale businesses mounts market growth. The loyalty programs are popular throughout European countries.

However, the market in Asia-Pacific is envisioned to the swiftest growth over the period. The growth in the region grows with quick development in the economy of occurring countries like China and India. In addition, expenses for developing IT infrastructure are increasing with developing a return on investments (ROI) through loyalty programs propel the market in APAC.

China and India are among the second quickest economy. The market in the region is scheduled to grow with the growing need for digital technology and a strong core on adopting a customer-centric approach to give value-added services to clients.

Latin American market for loyalty management market is intended to be a generous and quickest growing market throughout the foretold period. The service providers are adopting loyalty programs to develop sales and customer engagement. The stimulating sales of the card and customer's investments across numerous assets vouchers and choices in Mexico and Brazil.

The Middle East and African market for loyalty management market are experiencing the highest growth rate attributed to the arising of new loyalty programs in the market. The market in the region exhibits momentous growth in loyalty program adoption.

Major vendors in the global Loyalty Management Market
1. Epsilon (US)

2. Oracle (US)

3. Bond Brand Loyalty (Canada)

4. Kobie (Russia)

5. Brierley+Partners (US)

COVID-19 Impact global Loyalty Management Market
During the COVID-19 Impact, there has been a dramatic change in consumer behavior. In terms of software adoption and because of the COVID-19 impact, the loyalty management market has witnessed a positive impact. As per a survey, 45% of the American buyers changed their choice as a result of the crisis. Hence, loyalty management solutions were highly adopted by merchants globally. 

Chapter 1.Global Loyalty Management Market – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptionsa

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2.Global Loyalty Management Market – Executive Summary

2.1. Market Size & Forecast – (2021 – 2027) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

2.3.1. Impact during 2022 - 2027

2.3.2. Impact on Supply – Demand

Chapter 3.Global Loyalty Management Market – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4.Global Loyalty Management Market Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3 Customer Analysis

4.4. Porters Five Force Model

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Powers of Customers

4.4.3. Threat of New Entrants

4.4.4. Rivalry among Existing Players

4.4.5. Threat of Substitutes

Chapter 5.Global Loyalty Management Market - Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6.Global Loyalty Management Market – By Component

6.1. Software

6.2. Service

6.3. Professional Services

6.4. Consulting

6.5. Implementation

6.6. Support & Maintenance

6.7. Managed Services

Chapter 7.Global Loyalty Management Market – By Organization Size

7.1. SMEs

7.2. Large Enterprises

Chapter 8.Global Loyalty Management Market – By Deployment Type

8.1. On-Premises

8.2. Cloud

Chapter 9.Global Loyalty Management Market – By Operator

9.1. B2B

9.2. B2C

Chapter 10.Global Loyalty Management Market – By End-User

10.1. BFSI

10.2. Aviation

10.3. Automotive

10.4. Media and Entertainment

10.6. Retail and Consumer Goods

10.7. Hospitality

10.8. Others (education, healthcare, and telecom)

Chapter 11.Global Loyalty Management Market, By Geography - Market Size, Forecast, Trends & Insights

11.1. North America

11.1.1. U.S.A

11.1.2. Canada

11.1.3. Mexico

11.2. Europe

11.2.1. Italy

11.2.2. Spain

11.2.3. Russia

11.2.4. Germany

11.2.5. UK

11.2.6. France

11.2.7. Rest of Europe

11.3. Asia Pacific

11.3.1. Japan

11.3.2. South Korea

11.3.3. China

11.3.4. India

11.3.5. Australia & New Zealand

11.3.6. Rest of Asia-Pacific

11.4. Rest of the World

11.4.1. Middle East

11.4.2. Africa

11.4.3. South America

Chapter 12.Global Loyalty Management Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)

12.1. Company 1

12.2. Company 2

12.3. Company 3

12.4. Company 4

12.5 Company 5

12.6. Company 6

12.7. Company 7

12.8. Company 8

12.9. Company 9

12.10. Company 10

  • Primary & Secondary Sources to Collect & Validate Data

  • Utilization of Both Top Down & Bottom Up Approach

  • Holistic Research Methodology


Scope & Introductory Research

In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.​

Data Collection 

Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders. ​

Data Fusion

At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.

Data Analysis

At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.

Verification ​

Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report. ​

Quality Assurance & Report Preparation​

Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.​

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