Global Loyalty Market Overview
🌍 The market for worldwide loyalty management was estimated to be worth $3.45 billion in 2020, increased to $4.54 billion in 2021 and is expected to expand at a CAGR of 23.5% from $5.57 billion in 2022 to $24.44 billion by 2029.
The market is divided geographically into five main areas: North America, Europe Asia Pacific, the Middle East & Africa, and Latin America.
Over the past two to three years, the adoption of loyalty and reward programs has steadily increased in the Africa & Middle East region. To gain a greater market share in the area, a number of start-ups and international loyalty players are presenting their cutting-edge goods. 💪
In Europe, the market for rewards and loyalty programs has grown significantly during the past two years. In particular, during the past eight quarters, loyalty and rewards have become a tool for identifying, maintaining, and growing market share in the European region. 🚀
💥 In Asia Pacific region, loyalty and incentive programs are becoming more popular, especially in important markets like India, China, Indonesia, and Singapore where there is strong demand. The region’s robust market growth was primarily driven by the region’s vast population, fast digitalization, and customer preference for rewards programs.
Market Share Ranking
🏆 Considering how quickly loyalty management was adopted by the region’s retail sector, North America holds the highest market share. Customers prefer financial incentives like rebates or repayment, free delivery, free gifts, and product discounts in North America. 72% of the millennial age participates in loyalty programs, according to Oracle 2020 data.
🎖 Over the forecast period, Europe will hold the second-largest market share. According to the Nielsen survey on loyalty program sentiment, 66% of Europeans are participants in multiple loyalty programs. The region has a stronger preference for personalized loyalty programs.
As businesses and organizations in the region have changed their focus to improving customer experience, Asia Pacific is expected to grow quickly throughout the projection period. 🏅
Factors Behind The Growth Of The Global Loyalty Market
🔖 The reason behind this growth is due to the fact that:
In the current global economic recession, keeping clients and ensuring profit-generating is a red-hot topic. Hence, businesses have embraced customer relationship management approaches with a more aggressive approach to sustain profitable long-term connections. 🤝
Demand changes, an inability to manage qualitative development, and supply expansion have forced many organizations to create significant competitive advantages over their rivals. It is no doubt that individualized and erratic consumer behavior is also the main cause of this. 💳
🌐 Furthermore, a growing percentage of consumers altered their shopping habits throughout the global pandemic. The pandemic had a favorable effect on the market expansion. Due to the lockdowns, more customers chose to purchase online, which forced businesses to adopt loyalty management programs in an effort to keep their current clientele and draw in new ones.
The rise in online shopping has also prompted the introduction of new initiatives, such as the addition of free delivery services for new loyalty program members. This new effort of offering free delivery aims to give customers the best possible service. 💯
The Global Loyalty and Rewards Market Survey found that approximately 95% of consumers began to investigate other brands and shops even for their usual daily purchases. In order to remain relevant during the challenging times of the global pandemic outbreak, this led to a number of firms reviewed their loyalty and rewards program activities. 🚀
📌 The market is divided into BFSI(Banking, Financial Services, and Insurance), IT & Telecommunication, retail, manufacturing, transportation, hotel, media & entertainment, and other categories based on end-use.
💥 As a result of the industry’s fierce competition, which is promoting the creation of customer-rewarding solutions, the retail segment will gain a significant market share. The loyalty program also helps to enhance sales and revenue growth because of higher buy frequency and the fact that the retail industry is more transactional.
BFSI will grow quickly over the anticipated time period. BFSI’s commendable software includes JustBilling, Punchcard, EchoApp, and SailPlay, among others. Banks use these solutions in order to grow and keep their clientele as a result of the fierce competition in the banking sector. Additionally, platforms for online and mobile banking are creating new opportunities for gaining the interest and loyalty of customers. ❗️
The hospitality industry is also heavily adopting the rewarding strategy to improve customer retention by offering rewards based on, among other things, customers’ preferences, interests, and spending patterns. In a similar vein, the media, entertainment, and transportation sectors are moving toward rewarding software to boost customer confidence in their brands. 🎉
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