PUBLISHER: Grand View Research | PRODUCT CODE: 1363102
PUBLISHER: Grand View Research | PRODUCT CODE: 1363102
The global loyalty management market size is estimated to reach USD 20.44 billion by 2030, according to the recent reports of Grand View Research, Inc.., growing at a CAGR of 9.7% from 2023 to 2030. The loyalty management software helps view real-time data about how customers engage with the brand. Access to this information enables organizations to develop innovative and effective strategies for improving loyalty programs and the brand. The software can also create individual profiles for each customer. In addition, based on customers' behavior, organizations can analyze and understand customer engagement, subscription utilization, and usage frequency. Customer Service Managers (CSMs) create campaigns and strategies to target required customers for increasing customer retention, customer satisfaction, and customer engagement.
These are the key factors expected to drive the market growth. The demand for loyalty management solutions is expected to increase over the forecast period. Around 60% of internet users cite receiving rewards as a valued aspect of retail shopping. Online reward programs help increase the company's overall revenue by 5% - 10%. According to Forbes, approximately 80% of online shoppers shift to a competitor if they experience bad customer service in the initial period. Intensifying competition among brands has become essential for retailers to satisfy their customers and prevent them from switching to other brands. Furthermore, as smartphones and mobile devices are becoming faster and smarter, communication and exchange of information are getting more convenient and efficient than before, which is expected to boost the demand for online shopping, leading to the increasing demand for loyalty management.
These factors are expected to drive the market growth over the forecast period. A rapid increase in the number of smartphone users suggests that more individuals are exposed to online ads and prompted to consider online shopping. The number of individuals owning a smartphone or using the internet remains high in developed economies, whereas it is increasing in emerging economies. The growing number of internet users, particularly in the developing economies of Latin America, Middle East, and Asia Pacific is expected to contribute to the market growth. Therefore, the rising usage of smartphones & internet and consumer preference for online shopping are among the primary factors propelling the market growth.