Owing to benefits such as the delivery of personalized offers supplemented with a wide range of discounts and coupons thereby, retaining a large chunk of customers, the global loyalty card system market is experiencing a surge in its demand lately. The demand for loyalty card systems is experiencing a surge in the rate of adoption as compared to its other alternatives.
The need for various technological innovations and advancements in order to yield better services to the customers while not losing on the probable profit has accentuated the demand for loyalty card system services thus, improving the dependence on this market globally.
Rapid end-use adoption across a variety of industries, including hospitality, BSFI, entertainment, retail, and media, is driving impressive growth in the global loyalty card system market. They provide a number of incentives to their potential customers as an attempt to lure them to stick to the market and not drift apart.
Advantages such as a reduction in unprofitable customers along with retention of relevant consumer data encourage further adoption of loyalty card systems globally. Considering these factors, it can be said that the global loyalty card system is expected to grow at a high rate, ensuring an overall market size of USD 35.93 billion at a CAGR of 23.5% through the forecast span.
A loyalty card system can be defined as an incentive plan that gives retail businesses an opportunity to acquire information and data about their customers. On the basis of these data, the company provides discounts, rewards, merchandise, coupons, etc. in an exchange for their participation in the loyalty program.
The demand for personalised services has increased significantly, which is driving the market's expansion up. This helps in developing trust between the brand and the customer as the customers receive offers and suggestions that are individualized. Many of these tools have the capability to recognize as well as remove the fraudsters who may target the accounts of loyalty points. Together, these elements contribute to the expansion of the market for loyalty card systems worldwide.
However, there are certain restraints associated with the global loyalty card market. The growth of the market might be hampered by the imposition of stringent regulations ruled out by the government. A variety of privacy and security regulations abstain merchants from having access to their client’s information.
The key players in the loyalty card system market are Antavo Limited, Veripark, capillary Technologies, TIBCO Software, Inc., Bond Brand Loyalty, Target Brands, Inc., Comarch SA, IBM Corporation, and Epsilon Data Management among others. These players operate in the loyalty card system market and adopt various strategies in order to maintain a position higher than that of their competitors functioning in the market.
Software to Remain the Most Lucrative Segment
Based on components, the loyalty card system market is divided into software and services. It is anticipated of software to have a larger share of the market during the period of study. This is because software can easily detect customers who are repetitive and loyal to the business of the merchant. It also lends a helping hand in providing personalized services and rewards on the basis of the purchase history of the consumer.
Cloud-Based Deployment to Remain Atop
By deployment, the loyalty card system market is segmented into on-premise and cloud-based. During the forecast period, the cloud category is more expected to hold a bigger market share. This is due to the fact that it provides a selection of user-friendly gadgets. These include tablets, smartphones, and other mobile gadgets. Large Enterprises to Ensure Revenue Maximization
Large enterprises are anticipated to maintain dominance over the market during the forecast period, that is, 2021-31 because more investments are being made in this category due to the large base of clients and the surging rate of purchase. It also boosts the position of the market and provides exposure to the brand.
Retain to Remain the Most Potential End User
On the basis of end-use, retail is expected to have a dominating share of the market by the end of the forecast period. This is because the retail business is much more transactional as compared to any other category. These programs assist in the increase of sales and the growth of revenue in the long run.
North America is Expected to Render Ample Investment Avenues
North America is expected to continue to dominate during the forecast period. This region was the quickest while adopting the loyalty card system and also providing various monetary incentives like paybacks, free shipping, discounts, etc.
Covid-19 Impact and Market Status
The Covid-19 pandemic had an adverse effect on various markets such as transportation, hotels, construction, and the like. However, a moderate effect of the global pandemic was seen on the loyalty card system market and the effect might be considered positive too. As a consequence of the pandemic, there were a wide variety of restrictions imposed on the masses by the government in order to curb the spread of this deadly virus. Physical sales were hampered due to the worldwide imposition of the lockdown. As a result, a wide range of customers shifted to the online mode of shopping thus, pushing the merchants to undertake various measures in an attempt to retain their already existing customers and lure new ones thereby, resulting in the implementation of loyalty management programs.
Latest Innovations in the Loyalty Card System Market: a Snapshot
• In August 2021, Antavo Limited collaborated with Emakina to provide next-generation loyalty solutions to various brands, malls, and shops. Their solutions have been made available in the Middle-East nations, Europe as well as North America.
• In November 2022, Starbucks’ Loyalty Program introduced polygon NFTs which have utility in the real life.
Loyalty Card System Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2032||USD 35.93 billion|
|Growth Rate||CAGR of 23.5% during 2021-2031|
|Segment Covered||by Component, by Deployment, by Enterprise Size, by End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Antavo Limited, Veripark, capillary Technologies, TIBCO Software, Inc., Bond Brand Loyalty, Target Brands, Inc., Comarch SA, IBM Corporation, and Epsilon Data Management among others.|
Key Segments of the Global Loyalty Card System Market
Component Overview, 2021-2031 (USD Billion)
Deployment Mode Overview, 2021-2031 (USD Billion)
Enterprise Size Overview, 2021-2031 (USD Billion)
- Large Enterprises
- Small and Medium Sized Enterprises (SMEs)
End Use Overview, 2021-2031 (USD Billion)
- IT and Telecommunications
- Media and Entertainment
Regional Overview, 2021-2031 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
- South Africa