According to a new market research report from MarketsandMarkets, the loyalty management market is projected to grow from $1.68 Billion in 2016 to $4.59 Billion by 2021, at a CAGR of 22.2% during the forecast period, 2016 to 2021. Rising need for competitive differentiation among organizations to increase their market shares is one of the major drivers for the growth of the loyalty management market, the report states. That's good news for the broader loyalty industry, and good news for customers in search of reward and recognition.
The report, titled ( with a title guaranteed to increase the likelihood of carpal tunnel syndrome) "Loyalty Management Market by Type of Solution (Customer Loyalty, Employee Retention, and Channel Loyalty), Deployment Type (On-Premises and On-Demand), Organization Size (SMEs and Large Enterprises), Vertical, and Region - Global Forecast to 2021", also sites frequent shift in consumer demographics, increasing focus of loyalty programs on customer segmentations, significant rise in use of mobile technologies, and increase in the number of cardholders as other factors driving the growth of the loyalty marketer.
Money quote from the report:
"Among solutions, the customer loyalty segment is expected to lead the loyalty management market during the forecast period. Factors, such as need of the companies to obtain high return on investments (ROIs) to increase their profits and achieve competitive advantage over others to win customer loyalty are expected to drive the adoption of customer loyalty management solutions by companies, thereby fueling the growth of the customer loyalty segment of the loyalty management market during the forecast period."
Other key report findings:
CPG will fuel the loyalty market: Among verticals, the manufacturing segment of the loyalty management market is projected to grow at the highest CAGR between 2016 and 2021. The growth of the manufacturing segment of the loyalty management market is driven by consumer-centric approach followed by the manufacturing companies, along with increased need to retain their existing customers. The manufacturing industry is expected to adopt loyalty management solutions to enhance experience of customers from the point of purchase to post-purchase services. Moreover, manufacturing companies are also expected to invest in loyalty management solutions to retain their existing customers as well as acquire new loyal customers.
North America will continue to lead: The North American region is estimated to account for the largest share of the loyalty management market during the forecast period. The growth of the North America loyalty management market can be attributed to presence of leading providers of loyalty management solutions in the region that cater to requirements of varied industries, such as BFSI, retail and consumer goods, healthcare and life sciences, and media and entertainment, among others.
The report is certainly music to our ears: nothing contributes more to business success than a relentless focus on building long-term, profitable relationships with best customers. The report isn't free, nor is it cheap; you can find more information here.