⚙️Loyalty Management Market

Loyalty systems in retail are designed to reward customers for their past purchases or other useful actions and to provide them with incentives for making future purchases. A rewards program enables activation, retention, up-selling and referrals, along with providing strong value offer to the customer. A typical loyalty management system is comprised of operational parameters, such as transaction types, program design and funding options. It further includes value parameters such as redemption options, redemption thresholds, and earnings rates. The market for loyalty programs is growing and will reach $10 billion by 2028. There’s approximately another $1 billion in digital gift cards, and at least $11 billion in referral solutions.

On top of that, more than $50 billion loyalty points are issued globally each year. According to a Deloitte report, enrollment in loyalty programs across various industries reached 3.3 billion memberships in 2022 and has more than tripled since 2012. Despite this rapid growth, customer loyalty rewards programs are not realizing their full potential. According to the 2022 Bond Loyalty Report, North American consumers belong to 13.4 loyalty programs on average, but are only active in about half of those. Moreover, only 44 percent of consumers said they are “very satisfied” with the loyalty program experiences.