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Loyalty Management Market To Reach $31.11Bn By 2033

Loyalty Management Market To Reach $31.11 Billion By 2033

January 2026 | Report Format: Electronic (PDF)

Loyalty Management Market Growth & Trends

The global loyalty management market size is estimated to reach USD 31.11 billion by 2033, registering a CAGR of 10.7% from 2026 to 2033, according to a new report by Grand View Research, Inc. The loyalty management software helps view real-time data about how customers engage with the brand. Access to this information enables organizations to develop innovative and effective strategies fors improving loyalty programs and the brand. The software can also create individual profiles for each customer. In addition, based on customers’ behavior, organizations can analyze and understand customer engagement, subscription utilization, and usage frequency. Customer Service Managers (CSMs) create campaigns and strategies to target required customers for increasing customer retention, customer satisfaction, and customer engagement.

These are the key factors expected to drive market growth over the forecast period. The demand for loyalty management software is expected to increase over the forecast period. Around 60% of internet users cite receiving rewards as a valued aspect of retail shopping. Online reward programs help increase the company's overall revenue by 5%-10%. 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. Furthermore, as smartphones & mobile devices are becoming faster & smarter, communication & exchange of information are getting more convenient & efficient than before.

This is expected to boost the demand for online shopping, leading to an increasing demand for loyalty management. These are the key factors expected to drive market growth. A rapid increase in the number of smartphone users suggests that more individuals are exposed to online ads and prompted to consider online shopping. The number of individuals owning a smartphone or using the internet remains high in developed economies, whereas it is increasing in emerging economies. The growing number of internet users, particularly in the developing economies of Latin America, Middle East, and Asia Pacific, is expected to contribute to industry growth. Therefore, rising usage of smartphones & internet and rising consumer preference for online shopping will boost market growth.

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Loyalty Management Market Report Highlights

The software segment led the loyalty management industry, accounting for the largest revenue share of 58.2% in 2025.
The on-premises segment accounted for the largest market share in 2025 in the loyalty management industry. The segment growth can be attributed to the high adoption among large and medium-sized businesses.
The large enterprises segment accounted for the largest share of the global loyalty management industry in 2025.
The retail & consumer goods segment accounted for the largest revenue share in 2025 in loyalty management industry.