Customer loyalty program possibly increases lifetime value and boosts revenue by lowering overall marketing costs. Existing customers are more valuable than the new, thus, investing in customer loyalty programs is an excellent technique to expand the company’s revenue and sales by stabilizing finances and drive down customer acquisition costs. The loyalty programs contact every facet of large businesses; hence, it proves to be a significant investment in terms of both time and money. Nowadays, customers have become fickler with their loyalty when it comes to outdated program and retract their loyalty.
The global customer loyalty management software market is segmented by deployment, enterprise, and application.
Based on deployment, the market is segmented into on-premise and cloud. Cloud-based segment helps in avoiding upfront costs for all computing infrastructure such as hardware and data servers. Cloud-based loyalty programs show updates about customers’ purchase activities in real-time. However, their data is stored on a remote server, which may pose a threat to the organization regarding data leak.
On the basis of enterprise, the market is segmented into small & medium and large. The loyalty programs contact every facet of large businesses; hence, it proves to be a significant investment in terms of both time and money. Nowadays, customers have become fickler with their loyalty when it comes to outdated program and retract their loyalty.
Based on application, the market is segmented into campaign management, reward management, SMS marketing, and others. Campaign management for customer loyalty management includes various beneficiary services such as Pre-campaign analysis & segmentation, Merchant briefing & negotiations, Communications, Campaign setup & testing, In-campaign monitoring & intermediate reporting, and Post-campaign analysis.
Geographically, the global customer loyalty management market is segmented into four regions: North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America has several influential factors that positively impact the growth of the consumer loyalty management software such as growing mobile industry and associated applications & services. According to GSMA, the unique mobile subscribers in North America is estimated to increase from USD 303 million in the year 2017 to USD 328 million in 2025, thereby providing several growth opportunities for customer loyalty management software in the region.
Europe actively conducts several loyalty programs as every consumer is associated to a minimum of one loyalty program. For instance, according to a survey conducted in the U.K, around 85% of customers have supermarket loyalty cards, 66% of customers have Tesco club card, and 52% of the customers had a Sainsbury card.
Asia Pacific is observing rapid growth of the e-commerce sector with declining sales of off-line retailers, sluggish economic growth that is hurting the FMCG market. It has been found that, 69% of loyalty programs are favourable if their mobile apps are available. Vietnam, Australia, and New Zealand having the highest self-reported rate of loyalty program in the Asia Pacific region.
LAMEA constitutes of steadily developing regions such as South Africa to whom monetary rewards are highly valued than in the rest of the countries in the MEA being a lucrative growth prospect for the market. Cross-channel integration and flexible rewards are more captivating with respect to personal promotion offers and bonus earnings.
Some of the key players in the global customer loyalty management market are Apex Loyalty, CitiXsys Americas Inc, CityGro, Inc., Influitive Corporation, SiEBEN Yotpo, Ltd., Tango Card, Inc., Oto Analytics, Inc., Zoho Corporation Pvt. Ltd., and Loyverse
Zoho Corporation Pvt. Ltd. collaborated with Jive Communications, a provider of popular business cloud telephony solutions that offers an enterprise-grade customer relationship management (CRM) with built-in telephony. This CRM would be available only in Brazil.
Oto Analytics, Inc., launched Womply CRM. Its first effortless customer relationship management solution designed for small businesses in America.
Yotpo, Ltd., launched AI-based review widgets ‘Yotpo Focus’ suite, designed for automatically showcasing best customer content on site.
Customer Loyalty Management Market Segmentation