Mar 24, 2021 (The Expresswire) -- The global loyalty management market size is projected to reach USD 10.02 billion by 2027, exhibiting a CAGR of 19.9% during the forecast period. Rising importance of loyalty management during the current COVID-19 pandemic will be a crucial factor driving the market growth, states Fortune Business Insights™ in its report, titled “ Loyalty Management Market Forecast By Size, Share and Covid-19 Impact Analysis, By Type (Customer Retention, Customer Loyalty, and Channel Loyalty), By Deployment (On-Premise and Cloud), By Enterprise Size (Large Enterprises, Small and Medium Enterprises), By Industry (Banking, Finance, Security and Insurance (BFSI), IT and Telecommunications, Transportation, Retail, Hospitality, Manufacturing, Media and Entertainment, and Others) and Regional Forecast, 2020-2027”. Viewing the on-going crisis as a lucrative opportunity, companies, brands, and retailers across the board are designing attractive loyalty solutions in the form of discounts, free shipping, and virtual proximity to retain customers. For instance, the Italian luxury fashion retailer, LuisaViaRoma modified its return policy, changing it from 30 days to 60 as the coronavirus ravaged the country. In the UK, a beer company called BrewDog converted its bars into virtual pubs to maintain visibility and closeness of its brand to its loyal customers. The COVID-19 outbreak, therefore, is generating unique opportunities for businesses to launch novel loyalty programs to retain their customers and attract new ones.
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As per the report, the market value stood at USD 2.47 billion in 2019. The report also shares the following:
Exhaustive study of all market segments;
Careful analysis of the market drivers, trends, and growth opportunities;
Comprehensive assessment of the challenges facing the market; and
Detailed examination of the regional developments and competitive landscape of the market.
Blending of Loyalty Programs with Artificial Intelligence to Open New Growth Dimension
Artificial Intelligence (AI) and technologies related to it are being rapidly adopted in multiple industries to optimize their most essential processes. The domain of loyalty management occupies central place in most sectors, primarily those where customer interface is frequent. Integration of AI with loyalty platforms is one of the top trends in this market as AI aids companies to analyze customer behavior and predict their purchase patterns. This ability of AI also allows businesses to offer personalized products and services to their customers. For example, UK-based HSBC Holdings leveraged AI to offer reward points for customers, aligned with their purchase behavior. Similarly, the US pharmacy franchise, Walgreens, personalizes its offers based on customers’ purchase history and also keeps them posted about relevant events and discounts of the company. Increasing adoption of AI by brands to ensure customer loyalty is, thus, expected to fuel the loyalty management market growth in the forthcoming years.
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North America to Have a Tight Hold on Market Share; Europe to Display Considerable Growth
North America boasted a market size of USD 0.81 billion in 2019 and is expected to lead the loyalty management market share during the forecast period. The foremost reason for the region’s commanding hold on the market is the presence of a robust retail sector in the US and Canada. Retail giants such as Walmart and Costco are actively adopting AI and Machine Learning (ML) to enhance customer satisfaction and ensure customer retention, which is fueling the regional market.
In Europe, personalized loyalty management programs are gaining popularity, especially in France, Italy, and the UK, with brands in these countries increasingly investing in AI for improved customer engagement. The market in Asia Pacific is expected to grow at an impressive CAGR as retailers in the region are focused on enhancing customer experience through advanced loyalty programs.
Leading Players to Focus on Optimizing Customer Satisfaction
Key players in this market are accomplishing the challenging task of retaining loyal customers by launching novel loyalty management programs and offerings. These programs comprise of various discounts, cash-back offers, attractive exchange and return options, and enhanced services for frequent buyers.
April 2020: US-based ACI Worldwide announced the provision of its ACI Issuer solution to financial institutions during the COVID-19 pandemic. The product is card management system that supports all types of card payments and features advanced analytics, along with loyalty management and reporting.
September 2019: The US retail bigwig, Target Corp., declared the expansion of its customer loyalty program, Target Circle, across the country. Intended to capitalize the upcoming holiday season, the program is available for free for all customers and offers 1% redemption on purchases, early access to sales, and personalized offers and deals.
List of Players Profiled in this Market Report:
Target Brands, Inc.