The loyalty management market is estimated to reach USD 4.0 billion by 2020, at a CAGR of 23.2% during the forecast period. This significant CAGR rate is owing to various factors driving this market which include frequent shift of consumers' demography and increase in the number of card holders, among others.
Banking, Financial Services, and Insurance (BFSI), retail and consumer goods, and travel & hospitality are the top three verticals in the loyalty management market. The new rules and regulations such as Credit CARD act 2009 and Durbin Amendment in the banking industry, the shift of consumers' demography and the increase in the number of loyalty programmes in airlines are the major reasons for the growth of these verticals.
Among the various types of solutions, the customer loyalty solutions have gained traction across all industries. This is because organisations are looking for various customer retention programmes to increase customer engagement and improve customer loyalty.
To determine and verify the market size for several segments and sub-segments gathered through secondary research, extensive primary interviews were conducted with key business personnel and below are the details:
· By Company Type - Tier 1 (25%), Tier 2 (35%) and Tier 3 (40%)
· By Designation - C-level (65%), Director level (25%) and other executives (10%)
· By Region-North America (60%), Europe (20%), and APAC (20%).
There are various opportunities which offer a lucrative chance for loyalty management solution vendors to expand their business footprint. The increased investments on card loyalty technologies by organisations and the increased sophistication of online reward management programmes are few of the opportunities in this market.
The report highlights the top vendors in this market space, such as, Oracle Corporation, IBM Corporation, SAP SE, Alcatel-Lucent, Aimia Inc., Fidelity Information Services, Comarch, Maritz Holding Inc., MicroStrategy Inc., and TIBCO Software Inc. (Tibco Loyalty Lab).