Loyalty Management Market

Global

Loyalty Management Market is valued at USD 7,829.4 Million in 2021

and is projected to reach a value of

USD 13,946.0 Million by 2028

at a CAGR (Compound Annual Growth Rate) of

9.90%

over the forecast period.

Premium Insights

The increasing use of big data, machine learning, and artificial intelligence (AI) in Loyalty Management programs can help determine consumer perception and create efficient loyalty programs for all consumer categories. The technology supports the extraction of useful insights from a sizable amount of unstructured and structured data from cellphones, survey forms, wearable technology, and cookies, further fueling the expansion. Client conversion is aided by the move toward personalized loyalty programs that offer individualized recommendations with which the customer may interact. Adding gamification to loyalty programs contributes to rising social sharing rates, improved digital customer journeys, and digital engagement, which further fuels the expansion of the Loyalty Management market. A new generation of Customer Relationship Management (CRM) strategies was brought about by developing Big Data concepts. Big data analysis enables businesses to recognize sales transactions, comprehend client behavior, and create effective marketing programs to foster long-lasting customer loyalty.

Market Segmentation

The Loyalty Management market is segmented based on

Components, Organization Size, Deployment Types, Operators, Verticals,

and

Region

. Based on Components, the market is segmented into Software and Service. In addition, based on the Organization Size, the market is divided into SMEs and Large Enterprises. Moreover, based on the Deployment Type, the market is further bifurcated into On-Premises and Cloud. In addition, based on the Operators, the market is divided into B2B and B2C. moreover, based on the Verticals, the market is bifurcated into BFSI, Aviation, Automotive, Media & Entertainment, Retail & Consumer Goods, Hospitality, and Other Verticals (Education, Healthcare and Telecom). Regionally, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Verticals

BFSI category dominated the market in 2021

Based on vertical, the market is segmented as BFSI, Aviation, Automotive, Media and Entertainment, Retail and Consumer Goods, Hospitality and Others (education, healthcare and telecom). The BFSI segment holds the largest share in the market. Technology development has forced BFSI organizations to concentrate on boosting client loyalty. Banks have adopted Loyalty Management solutions to engage clients, strengthen their ties, and draw in new ones due to the banking industrys intensifying rivalry. Customers' preference for internet and mobile banking is expanding, giving banks new chances to attract clients and boost client loyalty.

Based on Component

s

The service category dominated the market in 2021

Based on components, the market is segmented into Software and Service. The service segment is anticipated to grow at the highest rate during the forecast period. The overall services sector significantly influences the expansion of the Loyalty Management market. These services help clients' bottom lines by lowering overall expenses, raising overall revenues, and enhancing productivity. Organizations may track, assess, and analyze their business requirements with the use of these services to assist them in making better decisions. Due to businesses' rising emphasis on customer experience and customer loyalty, the services sector is expanding quickly.

Based on Regional Analysis

North America holds the significant share in the during the forecast period

North America is estimated to maintain its dominant share in the market during the forecast period. The market is expanding as a result of rising internet usage, rising social media usage, and rising e-commerce industry popularity. North America is home to developed nations like the United States and Canada. Retail brands that reward loyal customers are more popular in the area. The majority of consumers like monetary advantages like cashback, rebates, and product discounts. These are all positive signs for the markets expansion. The adoption of Loyalty Management solutions is also being fueled by solutions built on the newest technology for customer data analysis, real-time reporting, and strong investments in AI-based loyalty programs. For various clients, many businesses opt to offer customized loyalty programs, which is likely to stimulate growth.

Competitive Landscape

The key players in the Loyalty Management market include- Epsilon (US) and others.

Recent Development

· In June 2021, Oracle acquired CrowdTwist, one of the leading providers of cloud-native customer loyalty solutions to empower brands to offer personalized customer experiences.

· In May 2021, Kobie acquired an exclusive license for the loyalty and co-branded credit card space to Rosemark’s Quantitative PersonaTM (QP) Method. The QP Method identifies the most valuable customers in each market based on the preferences, which drive the economic value.

Segmentation of Loyalty Management Market