Global Loyalty Management Market
Loyalty Management Market
The market has been valued at USD 1.56 billion in 2015 and is projected to reach USD 4.71 billion by the end of 2020 growing at a CAGR of 24.73%. Loyalty programs are specially designed to reward customers for their past purchases and to provide them with incentives for making future purchases. A rewards program enables cross-selling, retention and improved customer penetration along with providing strong value offer to the customer. A typical loyalty management system comprises of various operational parameters such as program design, transaction types, and funding options. It also includes value parameters such as redemption options, redemption thresholds, and earn rates.
Many organizations have increased their spending on loyalty programs due to their offerings, which include expanded coverage to everyday consumer purchases, innovative rewards leading to an increased scope for customer retention and response, and collaboration opportunities for enhanced services. The key operational drivers for this market include the frequent shift of end-user demographics, rise in new mobile technologies like connecting to the market with various apps, increased organizational focus on customer segmentation for effective loyalty management programs and an increasing number of card holders. While lower customer awareness and various rules and regulations imposed by the government, impede the growth of the market. Various organizations are now investing in many card loyalty technologies providing an opportunity for the loyalty management market growth. In order to match the sophistication of online reward management solution, many organizations tend to choose loyalty management solutions provided by various vendors. North America held the highest share of overall loyalty management market in 2015, while Asia Pacific and Latin America are projected to grow at a brisk pace owing to increased adoption of mobile technology and increased focus on employee retention respectively.
Based on this report, the global loyalty management market is segmented into a type of solution, type of deployment, organization size, various applications, and geography. In the solution segment, customer loyalty has the major share and employee retention has a huge potential for growth. In the organization segment, large enterprises are projected to have higher market share and a large scope for growth for the small & medium enterprises. In the application segment, BFSI is projected to have the maximum share.
Regional focus based on our study can be segmented into North America, Latin America, Asia-Pacific, Europe and Middle East & Africa. While the North American market is majorly driven by the huge increase in the number of card users, the European market is driven by a large number of customers opting for a retail shop. Asia Pacific, with its largest estimated growth in opting mobile technologies due to increasing middle-class wages, serves as a driver for loyalty management market. Market penetration and focus on employee retention are the major drivers in Middle East & Africa and Latin America respectively.
Some of the key players of this market mentioned in this report are:
Fidelity information Services Inc.
Loyalty Research Center
Maritz Holding Inc.
Key Deliverables of the Study
Market definition global loyalty management market along with identification of key drivers and restraints for the market.
Market analysis for the global loyalty management market, with region specific assessments and competition analysis on a global and regional scale.
Identification of factors instrumental in changing the market scenario, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market share.
Identification and analysis of the macro and micro factors that affect the global loyalty management market on both global and regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.