DUBLIN, July 26, 2023 /PRNewswire/ — The “Global Loyalty Programs Market Intelligence and Future Growth Dynamics Databook 2023” has been added to ResearchAndMarkets.com’s offering.
The global loyalty market is expected to grow by 12.7% on annual basis to reach US$135.9 billion in 2023. In value terms, the global loyalty market has recorded a CAGR of 13.1% during 2018-2022.The global loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 12.2% during 2023-2027. The global loyalty market is forecast to reach US$215.4 billion by 2027.
Drive by inflation, bargain-hunting customers are projected to drive the adoption of loyalty and reward programs across business verticals. Furthermore, the market growth will also be driven by the adoption of loyalty programs across different industries. Restaurant brands are turning to subscription models in the next big loyalty trend.
Over the next 12 months, the adoption of loyalty and reward programs is expected to continue to increase in the hospitality and travel sector in the global market. This, coupled with growing innovation, will keep aiding the industry’s growth in 2023. Many brands and retailers are seeking to integrate NFT and loyalty programs to drive customer engagement and retention. The trend is projected to accelerate worldwide from the short to medium-term perspective.
Firms are forging strategic partnerships to launch NFT-powered loyalty programs in 2023
In 2022, Starbucks and a host of other brands launched NFT-powered loyalty programs to drive customer engagement, retention, and sales. This trend is projected to further grow over the next 12 months, as firms are looking at NFTs as a way to drive the adoption of loyalty programs and boost customer loyalty, by offering more value through digital assets.
To capitalize on the trend, Salesforce entered into a strategic collaboration with Polygon to develop NFT-powered loyalty programs on the Polygon Blockchain. The collaboration, announced in March 2023, will enable firms to mint, manage, and sell NFTs. Over the last few months, Polygon has partnered with various brands, including Lotte Group and Starbucks, to offer Web3-related services.
In January 2023, Polygon also partnered with Cha Cha Matcha to develop and launch a loyalty program on the Polygon Blockchain. The program will enable customers to access rewards and experiences that are not accessible through conventional loyalty programs. The partnership with Cha Cha Matcha is similar to that with Starbucks and other brands.
Retailers are expanding their loyalty program offerings amid growing competition in the segment
Paid loyalty members have been found to spend more with brands that they are subscribed to. Amazon Prime members are estimated to spend significantly more compared to non-Prime members each month. Similar trends have been observed in other loyalty programs. With this trend and consumer behaviour, an increasing number of small and mid-sized retailers are launching paid-membership programs in the United States.
In February 2023, Barnes & Noble announced the launch of two new membership levels, one paid and one free. The US$40 paid loyalty program membership launched by the retailer provides members with in-store and online discounts, free shipping, and drink upgrades. The free reward program launched by the retailer will allow shoppers to earn rewards, which can be redeemed on future purchases.
Alongside traditional retailers, restaurant brands in the country have also turned to paid loyalty programs. Panera Bread, in 2020, is one of the early adopters of the paid loyalty program in the food-service industry. In February 2023, expanded the scope of its subscription service for loyalty members. The expanded program will enable members to gain more value for their subscriptions. El Lopo, Gravitas, and P.F. Chang’s are among the other players in the food-service industry that have turned to subscription models to power their loyalty programs.
From the short to medium-term perspective, more retailers across industry verticals are expected to launch paid membership loyalty programs, which will also boost their revenue and bottom-line growth.
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.
Scope
Below is a summary of key market segments:
Retail Sector Spend Value Trend Analysis
- Ecommerce Spend
- POS Spend
Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2018-2027
- Loyalty Schemes
- Loyalty Platforms
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2018-2027
- Points programs
- Tier-based programs
- Mission-driven programs
- Spend-based programs
- Gaming programs
- Free perks programs
- Subscription programs
- Community programs
- Refer a friend program
- Paid programs
- Cashback programs
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2018-2027
- In-Store
- Online
- Mobile
Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
- Seller Driven
- Payment Instrument
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2018-2027
Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by online, 2018-2027
Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store, 2018-2027
Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App, 2018-2027
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2018-2027
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2018-2027
- Card Based Access
- Digital Access
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2018-2027
- B2C Consumers
- B2B Consumers
Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
- Free
- Free + Premium
- Premium
Loyalty Platform Spend Market Size and Future Growth Dynamics by Software
- Analytics and AI Driven
- Normal CRM
Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
- In House
- Third Party Vendor
Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
- Cloud
- On-Premise
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2018-2027
- Software
- Services
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2018-2027
- Custom Built Platform
- Off the Shelf Platform
Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour, 2022
- By Age Group
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/i0clym
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