The global loyalty management market size was evaluated at USD 9.17 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 9.7% from 2023 to 2030. Loyalty management solutions offer businesses necessary tools to design, implement, and manage effective loyalty programs. The rapid digital transformation in retail industry is driving the adoption of loyalty management solutions in this sector. Innovative digital loyalty solutions, including mobile apps and online platforms, are helping retail businesses engage with customers across various touchpoints. Digital loyalty cards, personalized offers, and mobile wallets are some significant tools of modern loyalty programs that are driving their demand in retail industries. These factors would drive market growth during the forecast period.
The internet has induced a paradigm shift in how people communicate and exchange information. Over the past couple of years, internet usage has been rising significantly. The Global Connectivity Reports suggest that around 64.5% of global population uses internet on a daily basis. Internet has typically facilitated various online services and is a convenient mode of communication and exchange of information. At the same time, growing adoption of smartphones and other mobile devices is allowing people to access internet conveniently on the go. People worldwide are using smartphones and installing different applications for personal and professional purposes, depending on their age group, gender, and other demographic parameters.
The demand for loyalty management solutions is expected to increase over forecast period. Around 60% of internet users cite receiving rewards as a valued aspect of retail shopping. According to Forbes, approximately 80% of online shoppers shift to a competitor if they experience bad customer service in the initial period. Intensifying competition among brands has become essential for retailers to satisfy their customers and prevent them from switching to other brands. Therefore, the growing adoption of loyalty management solutions to achieve customer loyalty is emerging as a major factor driving market growth.
Loyalty management solutions assist businesses in fostering long-term relationships with existing customers by encouraging repeated business and building brand loyalty. This strategy involves implementation of loyalty programs, rewards, and incentives to motivate customers to make recurring purchases. Loyalty management solutions also allow businesses to go beyond mere transactions and build an emotional connection between the brand and its customers. By offering exclusive discounts, special offers, and VIP treatment, organizations can incentivize customers to stay loyal to their brand for a longer period of time.
Therefore, the primary focus of loyalty management is to retain and nurture customer base, as loyal customers tend to be more profitable and act as brand advocates. These factors support market growth. Industry players are utilizing advanced technologies, including AI, ML, and data analytics, to help businesses analyze large volumes of customer data for evaluating patterns and preferences, making customer experience more engaging and rewarding. Furthermore, there is a significant rise in initiatives, such as new product launches, partnerships, mergers, and acquisitions, by market players to integrate latest technologies into their respective loyalty management solutions to enhance their product performance and capabilities.
For instance, in August 2023, Valuedynamx Ltd., a data-centric multichannel purchase rewards provider, announced the launch of Pay with Points solution that helps banks or credit card issuers and airlines with miles-based loyalty programs to offer more dynamic reward options through Valuedynamx’s growing network of merchant partners. These factors would further drive the market during forecast period. The growing preference for automated and integrated solutions bodes well for market growth. The demand for technologically advanced loyalty management solutions is increasing as several organizations have started opting for streamlined and robust software to reduce dependency on human resolutions, minimize routine tasks, and reduce manual errors.
For instance, mobile deployments and digital wallets replace traditional punch cards and physical loyalty cards. This shift offers customers convenience and provides businesses with more insights into customer behaviors. Moreover, it enables the integration of loyalty programs with other digital marketing efforts, creating a more seamless customer journey. Various international regulatory bodies have drafted regulations to protect consumer data from unauthorized users and prevent any potential misuse of personal data.
Market players must abide by various regulations and acts, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), related to personal data protection and other acts related to software design. Various governments are focusing on incentivizing indigenous software development, thereby encouraging market players to invest in their home countries, develop innovative solutions, provide employment opportunities to locals, and increase their regional customer base. These factors boost the market growth during forecast period.
Solution segment accounted for the largest market share of over 55% in 2022. The segment growth can be attributed to increasing use of loyalty management solutions by various end-use industries to launch and manage loyalty programs. Loyalty management solutions offer various features, such as tracking & analytics; flexible Deployment Programming Interface (API); and compliance with regulations, such as the Payment General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and Card Industry Data Security Standard (PCI DSS). Companies are focused on introducing innovative loyalty management solutions to improve their brand value. For instance, in January 2023, IBM Corporation, company announced IBM Partner Plus, a program to reimagine the way company engages with its business partners by providing unprecedented access to company’s resources and incentives. The program envisaged fueling growth for both new and incumbent partners, including technology providers, resellers, and independent software vendors, by putting them in a position to control their earning potential.
Services segment is anticipated to grow at a CAGR of 10.2% during the forecast period. The loyalty management services segment is anticipated to witness considerable growth over forecast period owing to its wide range of features, such as customer report analysis, multichannel marketing, workflow management, dispute resolution, creation of new loyalty programs, and post-sale analysis. With loyalty management services, end-users can perform extensive data analysis to gain actionable insights and make data-driven decisions. Furthermore, loyalty management service providers, such as IGT Solutions Pvt. Ltd., Flatworld Solutions Inc., and OSF Digital, focus on providing 24x7 support to their clients to enhance their relationships with customers and increase their customer retention rate.
Customer loyalty segment accounted for the largest market share of over 35% in 2022. The shifting focus of various end-user companies on increasing customer loyalty amid growing competition is driving the segment growth. Many businesses are establishing strategic partnerships with other businesses to enable their customers to earn multiple rewards. For instance, in August 2022, AnnexCloud announced a partnership with Redpoint Global, a data management and customer engagement solution provider, to combine Redpoint Global’s rgOne solution with AnnexCloud’s Loyalty Experience solution. The partnership was aimed at providing organizations with the insights, data, tools, and capabilities necessary to respond to the changing consumer expectations in real time while driving growth without discountin.
Channel loyalty segment is anticipated to grow at a CAGR of 10.3% during forecast period. The channel loyalty program is a crucial sales pillar in growth strategy of a business. A well-driven channel loyalty program plays a key role in strengthening the brand identity by enhancing engagement with influencers, retailers, and partners, supporting segment's growth. With a focus on onboarding new partners/retailers, brand also needs to retain existing partners to establish a strong brand image. Channel loyalty solution assists companies in analyzing the performance of their partners/retailers and rewarding them according to their sales volume or achieved goals.
On-premise segment accounted for the largest market share of over 50% in 2022. The segment growth can be attributed to high adoption among large- and medium-sized businesses. Several businesses prefer on-premise solutions because of the ease of customization during implementation. On-premise solutions provide advanced data security, making it convenient to comply with various government regulations. The on-premise deployment also provides organizations with greater control over sensitive data while allowing them to roll out a personalized network for loyalty management programs that best meet their needs.
Cloud segment is anticipated to grow at a CAGR of 10.4% during the forecast period. The segment growth can be attributed to various benefits offered by cloud-based loyalty management solutions, such as low maintenance costs, remote management of loyalty programs, and quick deployment. Cloud deployment allows employees in an organization to access measurement and analytical tools in real-time and make better decisions about customer journey. Cloud-based solutions are widely preferred over conventional systems as they are more effective in meeting evolving customer expectations.
Large enterprises segment accounted for the largest market share of over 60% in 2022. The segment growth can be attributed to the emphasis of these companies on increasing their customer retention rate by offering incentives and rewards. Furthermore, large enterprises are making significant investments in customer loyalty solutions to maintain their position in the competitive market. When implementing loyalty management solutions, large enterprises focus on factors such as need for simplicity of framework coordination, better adaptability, and data protection. Their higher financial capability allows them to implement advanced loyalty management solutions, which bodes well for segment growth.
Small & Medium Enterprises (SMEs) segment is anticipated to grow at a CAGR of 10.5% during forecast period. Initially, SMEs, together with their particular industries, play a critical role in a country's employment and economy. The benefits of cloud-based deployments, including cost savings and compatibility with their Customer Relationship Management (CRM) system, entice small- and medium-sized businesses to choose cloud-based loyalty management solutions. For instance, in April 2022, Virgin Australia, an Australia-based airline, launched the Business Flyer Loyalty Program to retain the existing SME customers and attract new ones. With this program, their members are expected to earn Velocity Points for every dollar they spend on eligible flights and can redeem those points in hotel car hires, next flight booking, and at various brand partner stores.
Retail & consumer goods segment accounted for the largest market share of over 20% in 2022. The significant growth of retail & consumer goods segment can be attributed to increasing internet penetration rate and growing preference for mobile apps for making purchases and related decisions. Furthermore, consumer goods companies and retailers are utilizing loyalty programs in web deployments and digital e-commerce to retain existing customers and attract new customers. Various brands are launching loyalty programs to stay ahead of the competition and increase their customer base. For instance, in September 2023, children's clothing brand Hanna Andersson launched a loyalty program, Hanna Rewards, which offers one point for each dollar that customers spend when buying apparel. When the point count reaches 125, customers can convert them to a USD 10 reward. Customers can also get access to new product sales and limited-time deals access.
Hospitality segment is anticipated to grow at a CAGR of 10.6% during the forecast period. The hospitality segment is witnessing notable growth due to increasing adoption of loyalty management solutions by various restaurants, hotels, and resorts to enhance their customer experience and loyalty to the brand. Hospitality loyalty programs are offered in various categories: personalized rewards, points system, and partnership rewards. Furthermore, apart from general rewards, guests can also receive service-based rewards, such as free internet access, discounts on luxury suites for next visit, instant redemption on food & beverage services, and no blackout dates.
North America held major share of over 30% of the overall revenue in 2022. The regional growth can be attributed to high adoption of loyalty management solutions in the region, led by significant competition in a majority of industries. North America is characterized by the presence of major loyalty management providers, namely Aimia, Inc., Bond Brand Loyalty, Inc., ICF International Inc., Kobie Marketing, and TIBCO Software, which are significantly investing in R&D to develop advanced loyalty management solutions and increase their customer bases, contributing to regional market growth. Furthermore, rapid digitalization in retail industry and a growing preference for personalized experiences are contributing to the regional market expansion.
Asia Pacific is anticipated to grow at a CAGR of 10.8% during forecast period. The increasing internet usage and continuous growth of retail, consumer goods, and e-commerce industries in countries, such as China, Japan, and India, are expected to boost growth of the Asia Pacific regional market. Furthermore, advanced loyalty management solutions are easy to use and can be availed at an affordable price, which drives their demand among consumers across industries and sectors, such as hospitality, travel, retail, and consumer goods. Moreover, significant penetration by global players and advancement in digital payment solutions is driving regional market growth.
Companies undertake inorganic growth strategies, such as M&As and partnerships, to broaden their product offering. In March 2023, Salesforce, Inc. announced a partnership with Polygon, a blockchain platform for Non-Fungible Token (NFT)-based loyalty program. The partnership envisaged Salesforce Inc. assisting its clients in transitioning to Polygon by providing a management platform that would allow them to develop token-based loyalty programs. Some of the prominent players in the global loyalty management market include:
Bond Brand Loyalty Inc.
Five Stars Loyalty Inc.
ICF International Inc.
The Lacek Group
Martiz Holdings Inc.
Tibco Software Inc.
In August 2023, Comarch SA announced a partnership with Ascendant Loyalty Marketing, an end-to-end loyalty solution provider, to provide technology-driven services for all sizes of organizations to drive customer engagement. The partnership envisaged Ascendant Loyalty Marketing bringing its expertise in program reward fulfillment, financial modeling, strategy/design, operational management, and loyalty-related disciplines while Comarch SA providing its powerful, AI/ML-powered loyalty technology that helps brands worldwide in engaging customers and augmenting profits.
In March 2023, Salesforce Inc.announced a partnership with Polygon, a blockchain platform for Non-Fungible Token (NFT)-based loyalty program. The partnership envisaged Salesforce Inc. assisting its clients in transitioning to Polygon by providing a management platform that would allow them to develop token-based loyalty programs.
In April 2023, Brierley+Partners was acquired by Capillary Technologies, an engagement platform and customer loyalty provider, to provide customers with more effective and efficient loyalty and customer engagement solutions via Capillary Technologies’ next-generation Software-as-a-Service (SaaS) platform. By joining Capillary Technologies, the company would use the Loyalty Quotient (BLQ) to assist brands in measuring the emotional loyalty of their customers.
In February 2022, Aimia Inc. announced that its wholly-owned subsidiaries Aimia Holdings UK II Limited and Aimia Holdings UK Limited signed a binding Letter of Intent (LoI) with Aeromexico, a Mexican-based airline company, to divest the company’s 48.9% stakes in PLM Premier, S.A.P.I. de C.V (PLM) loyalty program. With this expansion, Aeromexico’s customer would benefit from agile and relevant programs that provide reward loyalty both on ground and in air in Mexico.
Market size value in 2023
USD 10.67 billion
Revenue forecast in 2030
USD 20.44 billion
CAGR of 9.7% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD billion and CAGR from 2023 to 2030
Revenue forecast, company market share, competitive landscape, growth factors, and trends
North America; Europe; Asia Pacific; Middle East & Africa; Latin America
U.S.; Canada; Germany; UK; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa
Offering, solution, deployment, organization size, vertical, region
Key companies profiled
Aimia Inc.; Bond Brand Loylaty Inc.; Brierley+Partners; IBM Corp.; Comarch SA; Five Stars Loyalty Inc.; ICF International Inc.; Kobie Marketing; The Lacek Group; Martiz Holdings Inc.; Oracle Corp.; Salesforce Inc.; SAP SE; TCP AnnexCloud; TIBCO Software Inc.
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
Avail customized purchase options to meet your exact research needs. Explore purchase options
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the loyalty management market report based on offering, solution, deployment, organization size, vertical, and region:
Offering Outlook (Revenue, USD Billion, 2018 - 2030)
Solution Outlook (Revenue, USD Billion, 2018 - 2030)
Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
Organization Size Outlook (Revenue, USD Billion, 2018 - 2030)
Small & Medium Enterprise (SME)
Vertical Outlook (Revenue, USD Billion, 2018 - 2030)
IT & Telecommunication
Media & Entertainment
Retail & Consumer Goods
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
Middle East & Africa
b. The global loyalty management market size was estimated at USD 9.17 billion in 2022 and is expected to reach USD 10.67 billion in 2022.
b. The global loyalty management market is expected to grow at a compound annual growth rate of 9.7% from 2023 to 2030 to reach USD 20.44 billion by 2030.
b. North America dominated the loyalty management market with a share of 33.63% in 2022. Customers in the region are favoring loyalty-based retail brands.
b. Some key players operating in the loyalty management market include Aimia Inc., BOND BRAND LOYALTY INC., Brierley+Partners, IBM Corporation, Comarch SA, Five Stars Loyalty Inc., ICF International Inc., Kobie Marketing, The Lacek Group, Martiz Holdings Inc., Oracle Corporation, Salesforce Inc., SAP SE, AnnexCloud, and Tibco Software Inc.
b. Loyalty management solutions offer businesses the necessary tools to design, implement, and manage effective loyalty programs. The rapid digital transformation in the retail industry is driving the adoption of loyalty management solutions in this sector. Innovative digital loyalty solutions, including mobile apps and online platforms, are helping retail businesses engage with customers across various touchpoints. Digital loyalty cards, personalized offers, and mobile wallets are some significant tools of modern loyalty programs that are driving their demand in retail industries. These factors would further drive the loyalty management market during the forecast period.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
"The quality of research they have done for us has been excellent."