Loyalty programs have become a compelling element worldwide, which caters to the customers within various segments with different options according to their lifestyle. These programs offer rewards for their purchases in the past and also provides incentives for their future purchases. This helps the companies in retaining their customers, selling of the products, and increasing their customer base as well. The Loyalty management market has grown immensely over the past few years, owing to the advancements in mobile technology and increasing usage of mobile apps.
Key Market Drivers and Restraints
The major forces triggering the growth of this market are:
• Considerable rise in mobile technologies and mobile apps
• Organizations emphasizing more on loyalty programs and customer segmentation
• Increased number of card holders
Although the vendors within this market will continue to show a good growth in the coming years, they will be faced with a couple of hindrances, which are lack of awareness about loyalty programs and their benefits among customers and the rules and regulations by the government, especially in the BFSI industry.
The loyalty management market is predicted to grow at a CAGR of 23.2%, reaching about USD 4.0 Billion from USD 1.4 Billion during the forecast period. Among all the regions, North America held the largest market share in 2015 and Latin America is expected to register highest CAGR from 2015 to 2020. The market in Asia-Pacific also showed a substantial growth rate, mainly because of the rising usage of mobile technology, especially in countries like India, China, and Japan.
Among the type of solutions, customer loyalty solutions segment took up the largest market share in 2015, whereas the employee retention solutions segment is expected to witness highest CAGR during the coming years. Among the deployment models, the cloud-based loyalty management solutions are estimated to grow at a higher CAGR as compared to on-premises solutions. If the types of organizations are to be considered, large enterprises are predicted to take up the largest share of the Loyalty Management Market in 2015; however, SMEs will grow at a higher CAGR over the forecast period.
Among the verticals, BFSI industry is expected to take up the highest market share in 2015, whereas, the manufacturing, healthcare and life sciences, and other industries are expected to register the highest CAGR between 2015 and 2020.
The prominent companies involved in the loyalty management market are IBM Corporation, Oracle Corporation, SAP SE, Alcatel-Lucent S.A., Aimia, Maritz LLC (including Bond Brand Loyalty), Comarch, Fidelity National Information Services (FIS) Inc., MicroStrategy Inc., and Tibco Loyalty Lab.
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The market for loyalty management has been split into the following categories and sub-categories:
• Solution Types: Customer Loyalty Solutions, Employee Retention Solutions, Channel Loyalty Solutions
• Deployment Types: On-Premises, On-Demand or cloud
• Organization Size: SMEs, Large Enterprises
• Vertical: BFSI, Retailer and Consumer Goods, IT & Telecommunication, Healthcare & Life Sciences, Travel and Hospitality, Manufacturing, Entertainment and Media, Government, Others
• Geography: North America, Europe, Asia-Pacific, Middle East & Africa, Latin America