#LoyaltyManagement: Future trends🚀🚀
💡Did you know that 65% of the revenue for a company comes from repeat customers🔥.
💡80-84% of the customers are more likely to stick to a company if they have a relationship with it and it offers them a loyalty program. These customers are also expected to spend 29% more compared to non-members🚀🚀
📩🗞️ Current Global Loyalty market is $135B+ with the Loyalty Management market pegged at $10.2B in 2023 and expected to grow at CAGR of 16.88% over the next 5 years.
Various types of Loyalty programs include:
🎖️#Gamification: Engaging customers by providing hedonic motivation through games, quizzes, contests, etc. eg: Starbucks
🎖️#Partnerships: Two or more brands come together to provide added benefits to customers. Ex: Walmart & JD.com tie-up in China for offering loyalty benefits.
🎖️ #Tier Benefits: Creating tier structure for customers to join and get upgraded with usages. It entices customers to spend more. Most hotel and airline rewards are tie-based.
🎖️#Community: Provide non reward program by touching the emotional side of customers wherein they engage with other users in a healthy way. hashtag#Sephora has one of the best Community programs for loyalty.
🎖️#Private Label / Premium Programs: For awarding the top spenders and exclusive few. Amex allows its premium customers dedicated access to special lounges and meet & greet programs.
🎖️#Personalization & Flexibility: Personalizing the customer rewards to customer-specific usages and patterns like hashtag#Marriott Bonvoy program. Flexibility to earn & use rewards like the earn & burn program is another way of creating loyalty.
🎖️#Cashback & Loyalty perks: The most used program wherein additional points, Cashbacks, early access, and extra discounts are provided to members and high users.
🎖️#App based: Creating a mobile app gives 1st party data insights into customer behaviour and helps in building a good loyalty program.
🎖️ #Sustainability, Green & Philanthropy: Loyalty programs embedded for a sustainable future are the new trend. Ex: KFC Green in China, Japan Rideshare initiatives, etc.
Loyalty markets in APAC & Europe:
#APAC: APAC is the fastest growing LM market with a CAGR of 21% from $2.69B in 2023 to $6.99B in 2028. China is leading with India, Malaysia, and Singapore registering strong growth. Top companies include #Aimia, #Epsilon, #Maritz, and #Comarch. Regional players are #Giift & #Capillary (Singapore), #LoopyLoyalty (China) among others.
#Europe: Europe LM is comparatively mature with 61% of the population being part of at least one membership program with countries like Norway having it as high as 85%. Market size is $42B and is expected to reach $66B by 2028 at a CAGR of 5.6%. Top market players include #Antavo, #Kognitiv, #Bond Brand, #ICF, #Brierley, #Kobie and #TIBCO. Comarch was launched in Poland and other regional players include Sumup & Paystone (UK).
