The global loyalty programs market was valued at around USD 201 billion in 2016 and is expected to surpass USD 379 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on loyalty programs for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global loyalty programs market during the forecast period. Some of the top vendors listed in this industry analysis include Maritz Holdings, Brierley + Partners, Kobie Marketing, Affinion Group, and Edenred.
In terms of geographical analysis, the Americas led the global market with a market share of 42%, followed by Europe, APAC, and MEA. The US drives the total loyalty programs market share in the Americas, representing about 35%–38% of the global loyalty programs market share.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “There is a shift in preference among consumers toward the use of mobile devices such as smartphones and tablets to obtain information about the products rather than point-of-purchase human interactions. Many consumer brands are taking advantage of the mobile devices’ penetration through mobile-based loyalty programs that offer benefits to customers through programs such as geo-location discounts and offers.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Availability of tiered reward programs that encourage customer participation
A tiered loyalty program is a form of gamification that rewards customers based on the tier and allows customers to move on to next tier by achieving pre-fixed program milestones. Tiered loyalty programs make customers feel valued and encourage customer participation, driving the program growth. 40%–45% of the loyalty programs worldwide follow a tier-based system.
Growing need for high customer relevancy of loyalty program benefits
Customers that enroll in a loyalty program expect the entire program to be relevant to their values, right from signing up to receiving communications and availing benefits. Customers also expect sellers’ communication to be one-to-one as opposed to mass messaging. A loyalty program with relevant benefits to customers can effectively increase the program membership.
Higher availability of enhanced customer data management systems
Core components of customer data management include data collection, integration of data from various sources, cleansing, and analysis to obtain the complete detail about customer interactions with the brand. Data-driven loyalty programs allow companies to provide the right message or offer to the right customer at the right time, thereby improving customer loyalty and projecting a positive brand image.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Loyalty Programs – Procurement Market Intelligence 2017’.
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