Loyalty Management Market Report 2025

The loyalty management market size has grown rapidly in recent years. It will grow from $10.94 billion in 2024 to $12.6 billion in 2025 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to customer retention focus, card-based loyalty programs, competitive differentiation, data-driven insights, e-commerce growth, customer experience enhancement, globalization of markets.

The loyalty management market size is expected to see rapid growth in the next few years. It will grow to $24.12 billion in 2029 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to sustainability and ethical practices, real-time engagement, gamification elements, voice and conversational interfaces, environmental and social responsibility. Major trends in the forecast period include personalization and ai, blockchain for loyalty programs, subscription-based models, digital wallet integration, cross-industry collaboration, voice and conversational interfaces.

The surge in cardholders and the utilization of reward points is propelling the expansion of the loyalty management market. Businesses leverage customer loyalty cards as a means to encourage repeat patronage. These cards also furnish insights into customer purchasing behaviors, enabling tailored incentives and rewards. For instance, a 2022 Customer Loyalty Data Survey conducted on 1,276 U.S. consumers by Clarus Commerce revealed that 61% of customers reported switching from their regular brand to another offering better incentives. Consequently, the increased number of cardholders and the use of reward points significantly drive the growth of the loyalty management market.

The anticipated growth in online shopping is expected to drive the expansion of the loyalty management market in the coming years. Online shopping, often referred to as e-commerce, involves the purchasing of goods and services via the Internet. Within this context, loyalty management encompasses the development of customer loyalty programs aimed at encouraging repeat purchases and enhancing customer engagement. E-commerce businesses frequently employ methods such as reward points, discounts, exclusive offers, and personalized promotions to foster customer loyalty, improve the shopping experience, and build lasting relationships with online shoppers. For example, in April 2024, data from the European Commission - a Belgium-based institution that proposes legislation, implements decisions, and upholds EU treaties - revealed that among individuals aged 16-74 surveyed, 92% had used the internet in the past year, with 70% making purchases of goods or services, which reflects a 2% increase from 2022. Furthermore, 75% of EU internet users reported buying items online in 2023, underscoring the ongoing growth of e-commerce. Thus, the rise in online shopping is fueling the growth of the loyalty management market.

Key players in the loyalty management market are forming strategic partnerships to develop loyalty programs aimed at boosting customer retention, enhancing brand loyalty, and delivering personalized customer experiences. These loyalty programs are particularly focused on increasing customer engagement and retention within the health and wellness sector, reflecting a growing trend among businesses to cultivate customer loyalty through tailored rewards. For example, in April 2022, Universal Drugstore Ltd, a Canada-based company, collaborated with Comarch SA, a Poland-based firm, to launch Wellness Rewards, a loyalty program. Customers can earn points for various activities, such as making purchases, attending health-related events, or engaging with the brand on social media. This initiative promotes continuous interaction and participation. Additionally, the program enables businesses to collect valuable insights into customer behaviors and preferences, which can be utilized to refine marketing strategies and enhance service offerings.

Prominent companies within the loyalty management market are innovating by introducing solutions such as global loyalty programs to establish a competitive advantage. These global loyalty programs encompass structured initiatives devised by businesses, expanding across international markets with the goal of fostering and sustaining customer loyalty. For instance, in April 2022, InterContinental Hotels Group (IHG), a UK-based hospitality company, rolled out IHG One Rewards, accompanied by an upgraded mobile app. This program introduces a fresh tier system and a bonus-point earning structure aimed at accelerating point accumulation and expediting reward redemption for members. The perks encompass complimentary breakfast for Diamond Elite members, exclusive access to reward night discount promotions, and elevated privileges for Elite members, including early check-in, late checkout, and room upgrades. Additionally, IHG One Rewards introduces Milestone Rewards, enabling members to select rewards every 10 nights, starting from 20 nights stayed. The program aligns with IHG's substantial investment in enhancing guest experiences and bolstering loyalty offerings.

In February 2024, Mithaq Capital SPC, a company based in Saudi Arabia, acquired Aimia Inc. for an undisclosed sum. This acquisition is part of Mithaq Capital's strategy to broaden its portfolio by leveraging Aimia's expertise in loyalty management services. Aimia Inc., a company headquartered in Canada, specializes in providing loyalty management services.

Major companies operating in the loyalty management market include Kobie Marketing Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Fidelity National Information Services Inc., ICF International Inc., TIBCO Software Inc., Maritz Holdings Inc., Comarch SA, AIMIA Inc., Blue Ocean Systems, VeriPark, The Lacek Group Inc., Annex Cloud, Capillary Technologies, Kognitiv Corporation, Antavo Limited, Paystone Inc., Apex Loyalty, Bond Brand Loyalty Inc., Brierley Partners, FiveStars Loyalty Inc., Lumata Group, Sailplay, Epsilon Data Management LLC.

North America was the largest region in the loyalty management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the loyalty management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the loyalty management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Loyalty management involves a set of strategies aimed at providing exceptional customer service to attract, engage, and retain customers. It focuses on offering benefits, experiences, and rewards that foster long-term engagement with customers.

The main components of loyalty management are software and services. Loyalty management software connects businesses with customers across all touchpoints and tracks individual consumer purchasing patterns across online and offline channels. Various deployment types of loyalty management include cloud and on-premises solutions for organizations such as small and medium-sized enterprises, as well as large enterprises. Loyalty management is utilized in various industries including BFSI, IT, telecommunications, transportation, retail, hospitality, media and entertainment, among others.

The loyalty management market research report is one of a series of new reports that provides loyalty management market statistics, including the loyalty management industry global market size, regional shares, competitors with a loyalty management market share, detailed loyalty management market segments, market trends and opportunities, and any further data you may need to thrive in the loyalty management industry. This loyalty management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The loyalty management market includes revenues earned by entities by providing loyalty management services and software (e.g., channel loyalty, customer loyalty, and customer retention). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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