The Loyalty Management Market size is projected to grow from USD 6.8 billion in 2024 to USD 30.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.00% during the forecast period (2024 - 2032). Additionally, the market size for loyalty management was valued at USD 5.5 billion in 2023.
Customers' increasing preference for personalized solutions and growing need for customer behavior data are the primary drivers propelling the market's expansion.
Figure 1: Loyalty Management Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
A company that wants to prosper must provide the greatest experience for its clients. However, building a loyal consumer base takes time and effort. Adoption of cutting-edge technology can transform loyalty management systems and improve consumer engagement. Artificial intelligence (AI) and machine learning (ML) are two examples of modern technologies. AI-driven loyalty programs examine client information to generate customized offers based on past purchases. For instance, Starbucks uses artificial intelligence (AI) to present each client with customized offers based on their past purchases.
Additionally, Natural Language Processing (NLP) is a tool used by AI-powered chatbots to deliver quicker and more effective responses. Businesses customize their loyalty programs to match certain customer preferences by using predictive analytics. AI can identify fraud by monitoring a variety of transactions directed toward loyalty point accounts. For example, Amazon uses AI in the AWS marketplace to identify and stop fraudulent activities. The benefits of these tools should accelerate market expansion even more.
B2C, or business-to-consumer, refers to the practice of selling goods directly to customers. B2C loyalty programs are a powerful tool for expanding a company's client base and engaging, rewarding, and retaining a large number of users. Through integrated, engaging loyalty programs, loyalty management enables B2C businesses across all industries to forge closer bonds with their clientele. The need for loyalty management has grown significantly over the past several years as a result of organizations placing an increasing emphasis on customer-centric solutions.
Additionally, B2C companies concentrate on creating a special program that meets their goals, engages clients with deep experiences, and collects program analytics to support companies in creating value for the company. Furthermore, business-to-consumer markets rely more heavily on feelings. Customers are increasingly concerned with the advantages of the product and expect marketers to explain how their products or services will benefit them directly.
B2C market firms began offering smartphone reward programs due to smartphones' increasing use worldwide. More companies must also include features, from document uploads to incentive redemption, that are mobile-friendly, dependable, and easy to use to attract and retain customers. As a result, B2C businesses are starting to use loyalty management systems. For instance, the Enterprise Loyalty Cloud platform Antavo closed its Series A round in November 2022 with a successful investment of EUR 10 million (~USD 10.86 million). Lead Ventures and Euroventures spearheaded the round, Europe and Innovation Nest, as well as private investors, including Zoltan Vardy. This funding allowed the company to continue developing its best-in-class software as a service (SaaS) platform. Thus driving the Loyalty Management market revenue.
Based on Deployment, the Loyalty Management Market segmentation includes On-premise and cloud. In 2023, the cloud segment dominated the market. The cloud deployment approach provides a variety of easy-to-use devices, including tablets, smartphones, social media, and more. At a fair price, the cloud-based software also tracks real-time data on client questions and response times. For example, Comarch SA introduced its Loyalty Cloud 1.2 in March 2021 with the goal of lowering user costs associated with administration, operations, and the creation of immersive programs. Because of the strong security framework, on-premises will show steady advancement.
The On-premise category is anticipated to be the fastest growing. Compared to cloud-based solutions, on-premise implementation involves higher upfront capital costs because it necessitates investments in hardware, software licenses, and infrastructure setup. Smaller companies with fewer resources may find it easier to run on-premise loyalty management systems since they require a specialized IT staff with knowledge of system administration, maintenance, and security.
Based on Enterprise Type, the Loyalty Management Market segmentation includes large enterprises and small & medium enterprises (SMEs). In 2023, the large enterprises category generated the most income. The expansion of this market can be ascribed to the focus these businesses place on raising their rate of customer retention through rewards and incentives. In addition, big businesses are spending a lot of money on client loyalty programs in order to stay competitive in the market. Large-scale businesses prioritize elements like data security, improved adaptability, and ease of framework cooperation when putting loyalty management systems into place. They can adopt cutting-edge loyalty management systems thanks to their greater financial capacity, which is encouraging for the segment's growth.
The loyalty management small & medium enterprises (SMEs) segment market is anticipated to grow fastest during the forecast period. SMEs are essential to a nation's employment and economy, along with their specific industry. Small and medium-sized organizations are drawn to cloud-based loyalty management solutions by the advantages of cloud-based installations, which include cost savings and interoperability with their CRM system. To keep its current SME clientele and draw in new ones, Virgin Australia, an Australian airline, introduced the Business Flyer Loyalty Program in April 2022. Under this program, participants could anticipate accruing Velocity Points for each dollar spent on qualifying flights. These points can then be redeemed for hotel stays, vehicle rentals, next flight reservations, and a variety of brand partner shops.
Figure 2: Loyalty Management Market by Enterprise Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on End Use, the Loyalty Management Market segmentation includes BFSI, IT and telecommunications, transportation, retail, media & entertainment, hospitality, manufacturing, and others. The retail category leads the market. Retailers now have the chance to launch and grow their digital loyalty programs due to the increased number of online shopping platforms. The creation of successful loyalty programs depends on the ease with which e-commerce makes it possible to track consumer behavior, preferences, and purchase history. Merchants may increase consumer engagement and loyalty in the digital sphere by providing tailored discounts, prizes, and product recommendations to shoppers who purchase online.
The loyalty management market’s BFSI segment is anticipated to grow fastest during the projection period. BFSI offers lucrative applications such as JustBilling, Punchcard, EchoApp, SailPlay, and others. The banking sector is becoming increasingly competitive, which pushes banks to use these strategies to grow and retain their customer base. Additionally, mobile and internet banking systems are making new avenues for attracting customers' interests and commitment possible.
The study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World by region. The North American Loyalty Management market will dominate this market because the local retail industry is quickly implementing loyalty management software. North American consumers choose financial incentives like product discounts, free shipping, payback or refunds, and free items.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: LOYALTY MANAGEMENT MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Loyalty Management market accounts for the second-largest market share. Several European countries have well-established loyalty programs, and the region has a stronger preference for customized loyalty programs. For example, METRO and Capillary Technologies collaborated to create a multi-nation B2B loyalty program in June 2022. This agreement with METRO facilitated Capillary's market debut in Europe. Further, the German Loyalty Management market held the largest market share, and the UK Loyalty Management market was the fastest-growing market in the European region.
The Asia-Pacific Loyalty Management Market is expected to grow at the fastest CAGR from 2024 to 2032 because of the expanding use of digital media and the increased emphasis on consumer experiences. Important companies in the area are meeting the needs of their clientele by offering customized loyalty programs at fair prices. Companies employ a variety of channels, such as Paytm, WeChat, WhatsApp, Alipay, and others, to offer their reward schemes. Moreover, China’s Loyalty Management market held the largest market share, and the Indian Loyalty Management market was the fastest-growing market in the Asia-Pacific region.
The industry's leading players will keep spending a lot of money on research and development to increase their product lines, which will propel the loyalty management market's growth. Contractual agreements, mergers and acquisitions, increased investments, collaboration with other companies, and the production of new products are examples of significant market developments. To increase their worldwide reach, market players also take part in a variety of strategic initiatives. In order to survive and expand in a more competitive and dynamic market, the loyalty management industry must offer reasonably priced products and services.
One of the main strategies manufacturers use in the worldwide Loyalty Management market is local manufacturing, which expands the market sector and helps customers by lowering operating costs. The Loyalty Management industry has recently provided some of the largest medical advantages. Major players in the Loyalty Management market, including Antavo Limited (U.K.), Comarch SA (Poland), Capillary Technologies (India), Bond Brand Loyalty (Canada), Salesforce.com, Inc. (U.S.), Oracle Corporation (U.S.), Target Brands, Inc. (U.S.), VeriPark (U.K.), Epsilon Data Management, LLC (U.S.), TIBCO Software, Inc. (U.S.), and others, are making investments in R&D activities in an effort to boost market demand.
Solutions for enterprise cloud computing are offered by Salesforce Inc., formerly known as Salesforce.com Inc. AI, marketing, automation, integration, commerce, cloud services for customer data, and artificial intelligence are all part of the company's Customer 360 Service platform. Primarily through direct sales efforts and indirectly through partners, it offers its solutions as a service on a subscription basis. Additionally, the business gives developers access to its platform so they may create new apps and features. It serves clients in a number of sectors, including banking, manufacturing, consumer goods, healthcare and life sciences, energy and utilities, automotive, education, media, nonprofit, retail, and technology. Salesforce introduced a new loyalty management solution in May 2021 to boost engagement and trust among end users in industries including manufacturing, retail, consumer goods, and travel & hospitality. The Salesforce Customer 360 Platform, which offers intelligent solutions for both B2B and B2C clients, serves as its foundation.
The most potent loyalty cloud available is Antavo, which provides scalable, pure-play loyalty technology that is simple to integrate with the use of reliable APIs. The loyalty program experience is completely customized due to Antavo's no-code, API-centric platform, which also enables marketing and loyalty teams to manage their programs internally without the assistance of IT. Quarterly product releases are issued by Antavo, which dedicates 60% of its revenue to product development.
Antavo is a pure-play loyalty technology vendor that is favored globally by loyalty consultants, agencies, and system integrators. Forrester, Gartner, and Loyalty360 have acknowledged it. Customers, including KFC, Benefit Cosmetics, La Cage, Kathmandu, Luisaviaroma, and BrewDog, along with international companies in the travel, pharmaceutical, and fashion sectors, are empowered by Antavo. In March 2022, BMW (U.K.) Ltd. and Antavo teamed up to launch the B2B loyalty program Inside Edge. Through the partnership, corporate drivers were able to receive benefits that would help them enjoy the ride, save money, and save time.
March 2023: Salesforce and Polygon Labs collaborated to develop a proprietary loyalty program based on NFT. The NFT management platform increased Polygon's market share in the enterprise sector and made NFT capabilities available to all of Salesforce's clients. Companies are using Salesforce's loyalty program to help them give blockchain rewards to their customers.
March 2023: Sabre Corporation and Capillary Technologies collaborated to provide hoteliers and airlines with access to Capillary's loyalty management tools. This collaboration, through real-time analytics, allowed the corporations to obtain important insights.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 5.5 Billion |
| Market Size 2024 | USD 6.8 Billion |
| Market Size 2032 | USD 30.7 Billion |
| Compound Annual Growth Rate (CAGR) | 24.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Deployment, Enterprise Type, End Use, and Region |
| Geographies Covered | North America, Europe, Asia-Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â Antavo Limited (U.K.), Comarch SA (Poland), Capillary Technologies (India), Bond Brand Loyalty (Canada), Salesforce.com, Inc. (U.S.), Oracle Corporation (U.S.), Target Brands, Inc. (U.S.), VeriPark (U.K.), Epsilon Data Management, LLC (U.S.), and TIBCO Software, Inc. (U.S.) |
| Key Market Opportunities | ·The rise of omnichannel integration and subscription loyalty programs |
| Key Market Dynamics | ·Increasing preference of customers for personalized solutions and the growing need for customer behavior data |
Frequently Asked Questions (FAQ) :
The Loyalty Management Market size was valued at USD 5.5 Billion in 2023.
The global market is projected to grow at a CAGR of 24.00% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Antavo Limited (U.K.), Comarch SA (Poland), Capillary Technologies (India), Bond Brand Loyalty (Canada), Salesforce.com, Inc. (U.S.), Oracle Corporation (U.S.), Target Brands, Inc. (U.S.), VeriPark (U.K.), Epsilon Data Management, LLC (U.S.), and TIBCO Software, Inc. (U.S.).
The Cloud category dominated the market in 2023.
Large Enterprises had the largest share of the global market.
Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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