PUBLISHER: The Business Research Company | PRODUCT CODE: 1500032
PUBLISHER: The Business Research Company | PRODUCT CODE: 1500032
Customer loyalty management software refers to a type of software designed to assist businesses in managing and nurturing relationships with their customers to encourage loyalty and repeat business. This software facilitates customer engagement, encourages repeat purchases, and enhances brand loyalty through effective rewards programs and personalized communication.
The main component types of customer loyalty management software include software and services. Customer loyalty management services entail specialized offerings provided by companies or agencies to aid businesses in creating, implementing, and managing effective customer loyalty programs. These services can be deployed on-premise or in the cloud through various operators, catering to both business-to-business and business-to-customer scenarios. They find applications across various areas such as campaign management, reward distribution, SMS marketing, and others, and are utilized by diverse end-users spanning industries such as banking, financial services, insurance, information technology and telecommunications, transportation, retail, hospitality, manufacturing, media, and entertainment, among others.
The customer loyalty management software market research report is one of a series of new reports from The Business Research Company that provides customer loyalty management software market statistics, including customer loyalty management software industry global market size, regional shares, competitors with a customer loyalty management software market share, detailed customer loyalty management software market segments, market trends, and opportunities, and any further data you may need to thrive in the customer loyalty management software industry. This customer loyalty management software research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The customer loyalty management software market size has grown rapidly in recent years. It will grow from $11.05 billion in 2023 to $13.08 billion in 2024 at a compound annual growth rate (CAGR) of 18.3%. The growth observed during the historic period can be attributed to several factors, including increasing competition among businesses, a heightened focus on enhancing customer experience, the proliferation of data, a shift towards subscription-based business models, and the rise of omnichannel retailing strategies.
The customer loyalty management software market size is expected to see rapid growth in the next few years. It will grow to $25.98 billion in 2028 at a compound annual growth rate (CAGR) of 18.7%. The anticipated growth in the forecast period can be attributed to several factors, including the expansion of loyalty programs across various industries, a heightened focus on customer lifetime value, the continued rise of subscription-based business models, an emphasis on omnichannel loyalty experiences, and the increasing demand for real-time analytics and personalization. Major trends expected during this period include AI-powered personalization, integration of blockchain technology, the emergence of voice-activated loyalty programs, regulatory compliance and data privacy measures, and the implementation of hyper-personalization through the Internet of Things (IoT).
The increasing transactions in e-commerce are anticipated to drive the expansion of the customer loyalty management software market in the foreseeable future. E-commerce, the online buying and selling of goods and services, conducted through websites, mobile apps, or online platforms, is experiencing growth due to improved logistics, convenient shopping experiences, diverse product selections, and personalized offerings. Customer loyalty management software enables e-commerce businesses to segment their customer base based on various criteria such as purchase history, demographics, and behavior. This segmentation facilitates targeted marketing campaigns tailored to specific customer segments, enhancing the effectiveness of promotions and incentives. For instance, the United States Census Bureau reported in February 2024 that e-commerce sales in the United States for 2023 reached $1,118.7 billion, representing a 7.6% increase from 2022 and driving the growth of the customer loyalty management software market.
Key players in the customer loyalty management software market are concentrating on developing innovative solutions such as intelligent loyalty programs to enrich customer engagement and retention, thereby fostering growth and competitiveness. Intelligent loyalty programs utilize advanced technologies such as big data, analytics, and artificial intelligence (AI) to enhance customer engagement, loyalty, and business outcomes. For example, in January 2021, Salesforce, Inc. launched Loyalty Management, a product designed to assist companies in creating intelligent loyalty programs for both B2B and B2C customers. Built on the Salesforce Customer 360 Platform, this product enables businesses to design loyalty programs such as tiered membership or points per purchase, and configure earn-and-redeem rewards schemes flexibly. Furthermore, it offers personalized loyalty incentives to drive business value by targeting different segments of the member base and crafting tailored promotions for specific industries and customer segments.
In September 2022, Razorpay, an India-based payment platform developer, acquired PoshVine to bolster its position in delivering comprehensive financial solutions to partner businesses and customers, including payments, banking, and now loyalty management. PoshVine, an India-based company specializing in customer loyalty management software, aligns with Razorpay's strategic vision of providing holistic financial solutions to its clientele.
Major companies operating in the customer loyalty management software market are Paytronix Systems Inc., Epsilon, Oracle Corporation, Capillary Technologies, Yotpo Ltd., Bond Brand Loyalty Inc., Brierley+Partners, Annex Cloud, Clutch, Fivestars, SessionM, CityGro, Clarus Commerce, Smile.io, Thanx Inc., LoyaltyLion, Zinrelo, RepeatRewards, Antavo, Loopy Loyalty, Preferred Patron Loyalty, Bunchball, Swipii, Kangaroo Rewards, SailPlay
Asia-Pacific was the largest region in the customer loyalty management software market in 2023. The regions covered in the customer loyalty management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the customer loyalty management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The customer loyalty management software market consists of revenues earned by entities by providing services such as implementation services, integration services, training services, analytics and reporting, and program management. The market value includes the value of related goods sold by the service provider or included within the service offering. The customer loyalty management software market also includes sales of products including loyalty program management platforms, customer engagement platforms, loyalty program APIs, and customer feedback and survey tools. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
Customer Loyalty Management Software Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on customer loyalty management software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for customer loyalty management software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The customer loyalty management software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.