LOYALTY MANAGEMENT MARKET ANALYSIS

Loyalty Management MarketSize and Trends

The global loyalty management market is expected to witness significant growth during the forecast period (2020–2027) due to the increasing demand for advanced solutions to monitor customer score and behaviors and to enhance customer engagement. In today’s scenario growth of the business is determined by the success of its customers. More customer engagement and more will be the level of customer satisfaction. Hence, loyalty management software are used to monitor customers' scores simultaneously. For instance, in May 2019,  Kobie, U.S. based loyalty marketing company launched Kobie Alchemy X, a real-time loyalty platform to enhance customer/user experiences. This latest platform is helpful to drive desired customer behavior and provide marketers with the tools to increase their revenue through loyalty program. The customer scores can be customer lifetime value ratings and customer score types will be Customer Satisfaction score, Customer Effort Score, Net Promoter Score, Recency, Frequency, And Monetary (RFM) analysis scores. Customer satisfaction scores help companies to know whether customer is satisfied with their product or services, net promoter score is used to know how likely customers recommend the brand to other companies and purchase product from the same company in the future. On the other hand, Recency, Frequency, and Monetary (RFM) analysis indicate how frequently the customer purchase drives the revenue of the company.

Market Trends: Moreover, loyalty management software helps companies to create a profile of the customers based on their behavior and analyze the same to understand customer engagement, subscription utilization, and usage frequency. This helps the customer service manager to develop strategies and create campaigns to target customers for increasing customer engagement, customer retention, and customer satisfaction. Thus, in turn, it helps organization to increase revenue and economic volume of the investment firm.

Cloud segment is expected to drive the market growth during the forecast period

Among deployment type, the cloud segment is expected to held dominant position in the global loyalty management market during the forecast period. The is due to growing need for  real time and automated solution increases the deployment of cloud based solution. The automated marketing tools such as gmail, web conferencing and many other platforms are gaining popularity. These tools are providing opportunities for brands to enhance their loyalty services by sensing emails and messages. However, these tools are not that much effective and does not provide good customer experience. Hence, demand for cloud based solution is increased to analyze customer buying behavior and to track real time updates regarding customer queries, retention rates and many others. For instance, in February 2019, vPromos, Inc., U.S. based mobile marketing company launched new innovation loyalty program vLoyalty SMB to enroll, engage and reward their customers in order to increase their revenue.

Figure 2: Global Loyalty Management Market Value (US$ Bn) Analysis and Forecast, 2017 - 2027

The global loyalty management market was valued at US$ 7.6 Bn in 2019 and is expected to reach US$ 21.3 Bn by 2027 at a CAGR of 15.9% between 2020 and 2027.