HOME Top Market Reports 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

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

By: marketsandmarkets.com
Publishing Date: January 2017
Report Code: TC 3881

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The loyalty management market is projected to grow from USD 1.68 Billion in 2016 to USD 4.59 Billion by 2021, at a CAGR of 22.2% from 2016 to 2021. Rising need for competitive differentiation among organizations to increase their market shares is the major driver expected to fuel the growth of the market during the forecast period, 2016 to 2021. Moreover, frequent shift in consumer demographics, increasing focus of loyalty programs on customer segmentations, significant rise in the use of mobile technologies, and increase in the number of cardholders are other factors expected to contribute towards the growth of the market during the forecast period.

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the loyalty management market on the basis of type of solution, deployment type, organization size, vertical, and region. The report provides detailed information about the factors, such as drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the market. The report aims to strategically analyze each submarket with respect to individual growth trends and contribution towards the overall market. It also aims at analyzing opportunities for stakeholders in the market, along with detailed competitive landscape of the market leaders. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments, such as acquisitions, partnerships, new product launches, and R&D activities in the loyalty management market.

The research methodology used to estimate and forecast the loyalty management market included acquisition of data from revenues of key vendors through secondary research. The vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the loyalty management market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key experts, such as chief executive officers (CEOs), vice presidents, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primaries is depicted in the figure given below:

Loyalty Management Market

To know about the assumptions considered for the study, download the pdf brochure

The ecosystem of the loyalty management market comprises vendors, such as Oracle Corporation (U.S.), IBM Corporation (U.S.), SAP SE (Germany), Aimia Inc. (Canada), Comarch (Poland), Bond Brand Loyalty (Canada), Brierley+Partners (U.S.), Epsilon (U.S.), ICF International, Inc. (U.S.), Kobie Marketing, Inc. (U.S.), TIBCO Software (U.S.), Maritz Holdings Inc. (U.S.), Fidelity Information Services (U.S.), MicroStrategy, Inc. (U.S.), and Lumata Group (U.K.), among others. Other stakeholders in the loyalty management market include vendors of customer loyalty solutions, employee retention and recognition solutions, channel loyalty solutions, and customer analytics solutions.

The target audiences of the loyalty management market report are:

  • Loyalty Management Software-as-a-Service (SaaS) Vendors
  • Value-added Resellers
  • IT Directors/Consultants
  • Cloud Service Providers
  • Research & Development Centers
  • Technology Consultants
  • Communication Services Providers
  • Market Research and Consulting Firms

 “Study answers several questions for the stakeholders, primarily which market segments to focus on, during the next two to five years for prioritizing their efforts and investments”.

Scope of the Report

The research report categorizes the loyalty management market to forecast revenues and analyze trends in each of the following subsegments:

Market by Solution

  • Customer Loyalty
  • Employee Retention
  • Channel Loyalty

Market by Deployment Type 

  • On-premises
  • On-demand

Market by Organization Size

  • SMEs
  • Large Enterprises

Market by Vertical

  • BFSI
  • Healthcare & Life Sciences
  • Retail & Consumer Goods
  • Manufacturing
  • Travel & Hospitality
  • IT & Telecommunication
  • Media & Entertainment
  • Others

Market by Region

  • North America
  • Europe
  • Asia-Pacific
  • Middle East & Africa
  • Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per specific needs of the companies. The following customization options are available for the report:

Product Analysis

  • Product matrix which gives a detailed comparison of product portfolio of each company.

Regional Analysis

  • Further breakdown of the North America loyalty management market
  • Further breakdown of the Europe market
  • Further breakdown of the Asia-Pacific market
  • Further breakdown of the Middle East & Africa market
  • Further breakdown of the Latin America market

Company Information

  • Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Market Opportunities in Global Loyalty Management Market

5 Market Overview (Page No. - 34)
    5.1 Introduction
    5.2 Market Segmentation
           5.2.1 By Solution
           5.2.2 By Deployment Type
           5.2.3 By Organization Size
           5.2.4 By Vertical
           5.2.5 By Region
    5.3 Market Dynamics
           5.3.1 Drivers
                    5.3.1.1 Rising Need for Competitive Differentiation to Increase Market Share
                    5.3.1.2 Frequent Shift of Consumer Demographics
                    5.3.1.3 Significant Rise in Mobile Technology
                    5.3.1.4 Increasing Focus of Loyalty Programs on Customer Segmentations
                    5.3.1.5 Increase in the Number of Cardholders and Use of Rewards Points as Cash
           5.3.2 Restraints
                    5.3.2.1 Strict Government Rules and Regulations
           5.3.3 Opportunities
                    5.3.3.1 Increased Application of Big Data and Machine Learning
                    5.3.3.2 Increasing Investments on Card Loyalty Systems Technology
                    5.3.3.3 Increased Sophistication of Online Reward Management Solutions
           5.3.4 Challenges
                    5.3.4.1 Challenge to Choose Between Build, Buy, and Partner
                    5.3.4.2 Low Awareness About Benefits of Loyalty Programs

6 Industry Trends (Page No. - 42)
    6.1 Introduction
    6.2 Strategic Benchmarking

7 Global Loyalty Management Market, By Solution (Page No. - 44)
    7.1 Introduction
    7.2 Customer Loyalty
    7.3 Employee Retention
    7.4 Channel Loyalty

8 Global Market, By Deployment Type (Page No. - 52)
    8.1 Introduction
    8.2 On-Premises
    8.3 On-Demand

9 Global Loyalty Management Market, By Organization Size (Page No. - 56)
    9.1 Introduction
    9.2 SMES
    9.3 Large Enterprises

10 Global Loyalty Management Market, By Vertical (Page No. - 60)
     10.1 Introduction
     10.2 BFSI
     10.3 Travel and Hospitality
     10.4 Retail and Consumer Goods
     10.5 IT and Telecommunication
     10.6 Media and Entertainment
     10.7 Healthcare and Life Sciences
     10.8 Manufacturing
     10.9 Others

11 Regional Analysis (Page No. - 73)
     11.1 Introduction
     11.2 North America
     11.3 Europe
     11.4 APAC
     11.5 MEA
     11.6 LA

12 Competitive Landscape (Page No. - 88)
     12.1 Overview
     12.2 Loyalty Management: Vendor Analysis
     12.3 Competitive Situations and Trends
             12.3.1 New Product Launches/Developments
             12.3.2 Acquisitions
             12.3.3 Agreements, Partnerships, and Collaborations

13 Company Profiles (Page No. - 96)
(Overview, Products and Services, Financials, Strategy & Development)*
     13.1 Introduction
     13.2 Oracle Corporation
     13.3 IBM Corporation
     13.4 SAP SE
     13.5 Aimia Inc.
     13.6 Comarch
     13.7 Bond Brand Loyalty
     13.8 Brierley+Partners
     13.9 Epsilon
     13.10 ICF International, Inc.
     13.11 Kobie Marketing, Inc.
     13.12 Tibco Software
     13.13 Maritz Holdings Inc.
     13.14 Fidelity Information Services
     13.15 Microstrategy, Inc.
     13.16 Lumata Group

*Details on Overview, Products and Services, Financials, Strategy & Development Might Not Be Captured in Case of Unlisted Companies

14 Appendix (Page No. - 133)
     14.1 Industry Experts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing RT: Real-Time Market Intelligence
     14.5 Available Customizations
     14.6 Related Reports
     14.7 Author Details


List of Tables (68 Tables)

Table 1 Global Loyalty Management Market: Assumptions
Table 2 Global Market Growth Rate, 2014-2021 (USD Million, Y-O-Y %)
Table 3 Global Market, By Solution, 2014–2021 (USD Million)
Table 4 Customer Loyalty: Global Market, By Region, 2014-2021 (USD Million)
Table 5 Customer Loyalty: Global Market, By Vertical, 2014-2021 (USD Million)
Table 6 Employee Retention: Global Market, By Region, 2014-2021 (USD Million)
Table 7 Employee Retention: Global Market, By Vertical, 2014-2021 (USD Million)
Table 8 Channel Loyalty: Global Market, By Region, 2014-2021 (USD Million)
Table 9 Channel Loyalty: Global Market, By Vertical, 2014-2021 (USD Million)
Table 10 Global Market, By Deployment Type, 2014-2021 (USD Million)
Table 11 On-Premises: Global Market, By Region, 2014-2021 (USD Million)
Table 12 On-Demand: Global Market, By Region, 2014-2021 (USD Million)
Table 13 Global Market, By Organization Size, 2014-2021 (USD Million)
Table 14 SMES: Global Loyalty Management Market, By Region, 2014-2021 (USD Million)
Table 15 Large Enterprises: Global Market, By Region, 2014-2021 (USD Million)
Table 16 Global Market, By Vertical, 2014–2021 (USD Million)
Table 17 BFSI: Global Market, By Solution, 2014–2021 (USD Million)
Table 18 BFSI: Global Market, By Deployment, 2014–2021 (USD Million)
Table 19 BFSI: Global Market, By Region, 2014–2021 (USD Million)
Table 20 Travel and Hospitality: Global Market, By Solution, 2014–2021 (USD Million)
Table 21 Travel and Hospitality: Global Market, By Deployment, 2014–2021 (USD Million)
Table 22 Travel and Hospitality: Global Market, By Region, 2014–2021 (USD Million)
Table 23 Retail and Consumer Goods: Global Market, By Solution, 2014–2021 (USD Million)
Table 24 Retail and Consumer Goods: Global Market, By Deployment, 2014–2021 (USD Million)
Table 25 Retail and Consumer Goods: Global Market, By Region, 2014–2021 (USD Million)
Table 26 IT and Telecommunication: Global Loyalty Management Market, By Solution, 2014–2021 (USD Million)
Table 27 IT and Telecommunication: Global Market, By Deployment, 2014–2021 (USD Million)
Table 28 IT and Telecommunication: Global Market, By Region, 2014–2021 (USD Million)
Table 29 Media and Entertainment: Global Market, By Solution, 2014–2021 (USD Million)
Table 30 Media and Entertainment: Global Market, By Deployment, 2014–2021 (USD Million)
Table 31 Media and Entertainment: Global Market, By Region, 2014–2021 (USD Million)
Table 32 Healthcare and Life Sciences: Global Market, By Solution, 2014–2021 (USD Million)
Table 33 Healthcare and Life Sciences: Global Market, By Deployment, 2014–2021 (USD Million)
Table 34 Healthcare and Life Sciences: Global Market, By Region, 2014–2021 (USD Million)
Table 35 Manufacturing: Global Loyalty Management Market, By Solution, 2014–2021 (USD Million)
Table 36 Manufacturing: Global Market, By Deployment, 2014–2021 (USD Million)
Table 37 Manufacturing: Global Market, By Region, 2014–2021 (USD Million)
Table 38 Other Verticals: Global Market, By Solution, 2014–2021 (USD Million)
Table 39 Other Verticals: Global Market, By Deployment, 2014–2021 (USD Million)
Table 40 Other Verticals: Global Market, By Region, 2014–2021 (USD Million)
Table 41 Global Market, By Region, 2014–2021 (USD Million)
Table 42 NA: Loyalty Management Market, By Solution, 2014–2021 (USD Million)
Table 43 NA: Market, By Deployment Type, 2014–2021 (USD Million)
Table 44 NA: Market, By Organization Size, 2014–2021 (USD Million)
Table 45 NA: Market, By Vertical, 2014–2021 (USD Million)
Table 46 Europe: Market, By Solution, 2014–2021 (USD Million)
Table 47 Europe: Market, By Deployment Type, 2014–2021 (USD Million)
Table 48 Europe: Market, By Organization Size, 2014–2021 (USD Million)
Table 49 Europe: Market, By Vertical, 2014–2021 (USD Million)
Table 50 APAC: Loyalty Management Market, By Solution, 2014–2021 (USD Million)
Table 51 APAC: Market, By Deployment Type, 2014–2021 (USD Million)
Table 52 APAC: Market, By Organization Size, 2014–2021 (USD Million)
Table 53 APAC: Market, By Vertical, 2014–2021 (USD Million)
Table 54 MEA: Market, By Solution, 2014–2021 (USD Million)
Table 55 MEA: Market, By Deployment Type, 2014–2021 (USD Million)
Table 56 MEA: Market, By Organization Size, 2014–2021 (USD Million)
Table 57 MEA: Market, By Vertical, 2014–2021 (USD Million)
Table 58 LA: Loyalty Management Market, By Solution, 2014–2021 (USD Million)
Table 59 LA: Market, By Deployment Type, 2014–2021 (USD Million)
Table 60 LA: Market, By Organization Size, 2014–2021 (USD Million)
Table 61 LA: Market, By Vertical, 2014–2021 (USD Million)
Table 62 Developments in Global Loyalty Management Market Between 2014 and 2016
Table 63 New Product Launches/Developments, 2015-2016
Table 64 Acquisitions, 2014-2016
Table 65 Agreements, Partnerships, and Collaborations, 2014-2016
Table 66 New Product Launches/Developments, 2015-2016
Table 67 Acquisitions, 2014-2016
Table 68 Partnerships, Collaborations, and Agreements, 2014-2016


List of Figures (56 Figures)

Figure 1 Research Design
Figure 2 Breakdown of Primary Interview: By Company Type, Designation, and Region
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Market Breakdown Data Triangulation Approach
Figure 6 Customer Loyalty Segment to Lead Global Loyalty Management Market, By Solution, 2016-2021 (USD Million)
Figure 7 SMES Segment to Record Highest CAGR in Global Loyalty Mangement Market, By Organization Size, 2016-2021 (USD Million)
Figure 8 Manufacturing Segment to Record Highest CAGR in Global Loyalty Management Market, By Vertical, 2016-2021 (USD Million)
Figure 9 LA Loyalty Management Market to Record Highest CAGR, 2016-2021 (USD Million)
Figure 10 NA Held Largest Share of Global Market in 2015
Figure 11 Adoption of Artificial Intelligence and Machine Learning Technology to Drive Global Loyalty Management Market During Forecast Period
Figure 12 Employee Retention Solution Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 13 SMES Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 14 Manufacturing Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 15 LA Loyalty Management Market to Record Highest CAGR, 2016-2021 (USD Million)
Figure 16 Customer Loyalty Segment to Lead Global Loyalty Management Market During Forecast Period
Figure 17 Market, By Solution
Figure 18 Market, By Deployment Type
Figure 19 Market, By Organization Size
Figure 20 Market, By Vertical
Figure 21 Market, By Region
Figure 22 Market: Drivers, Restraints, Opportunities, and ChallengesFigure 23 Strategic Benchmarking: Loyalty Management Market
Figure 24 Employee Retention Solution Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 25 Customer Loyalty Solution Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 26 Employee Retention Solution Segment in LA to Register Highest CAGR, 2016-2021 (USD Million)
Figure 27 Channel Loyalty Solution Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 28 On-Demand Deployment Type Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 29 On-Premises Deployment Type Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 30 On-Demand Deployment Type Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 31 SMES Segment to Record Highest CAGR, 2016-2021 (USD Million)
Figure 32 SMES Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 33 Large Enterprises Segment in LA to Record Highest CAGR, 2016-2021 (USD Million)
Figure 34 BFSI Segment Led Global Loyalty Management Market in 2016 (USD Million)
Figure 35 NA to Lead Global Market, 2016-2021 (USD Million)
Figure 36 Latin American Market to Re Record Highest CAGR, 2016-2021
Figure 37 NA Market Snapshot
Figure 38 LA Loyalty Management Market Snapshot
Figure 39 Business Strategy Analysis
Figure 40 Companies Adopted New Product Launches, Acquisitions, and Partnerships, Agreements, and Collaborations as Key Growth Strategies From 2014 to 2016
Figure 41 Partnerships, Collaborations, and Agreements are Key Strategies Adopted By Market Players
Figure 42 Geographic Revenue Mix of Top Five Market Players
Figure 43 Oracle Corporation: Company Snapshot
Figure 44 Oracle Corporation: SWOT Analysis
Figure 45 IBM Corporation: Company Snapshot
Figure 46 IBM Corporation: SWOT Analysis
Figure 47 SAP SE: Company Snapshot
Figure 48 SAP SE: SWOT Analysis
Figure 49 Aimia Inc.: Company Snapshot
Figure 50 Aimia Inc: SWOT Analysis
Figure 51 Comarch: Company Snapshot
Figure 52 Epsilon: Company Snapshot
Figure 53 ICF International, Inc.: Company Snapshot
Figure 54 ICF International, Inc.: SWOT Analysis
Figure 55 Fidelity Information Services: Company Snapshot
Figure 56 Microstrategy, Inc.: Company Snapshot

The loyalty management market is projected to grow from USD 1.68 Billion in 2016 to USD 4.59 Billion by 2021, at a CAGR of 22.2% during the forecast period, 2016 to 2021. Major drivers for the growth of the market include rising need for competitive differentiation among organizations to increase their market shares, 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.

This report provides detailed insights into the loyalty management market, which has been segmented on the basis of type of solution, deployment type, organization size, vertical, and region. On the basis of deployment type, the loyalty management market has been classified into on-demand and on-premises. The on-demand deployment type segment of the market is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to increased adoption of on-demand (cloud-based) loyalty management solutions by various organizations across the globe. The advantages offered by on-demand deployment of loyalty management solutions, which include low infrastructure costs and improved output with qualitative results are the factors fueling the growth of the on-demand deployment type segment of the market.

Among verticals, the BFSI segment is expected to lead the of the loyalty management market during the forecast period. The BFSI industry vertical is utilizing the power of loyalty programs to enhance its customer satisfaction. With increase in mobile technologies, such as mobile banking and increase in the number of cardholders, organizations in the BFSI industry vertical are expected to adopt loyalty management solutions to offer enhanced customer experience and increase loyalty of their customers.

Among solutions, the customer loyalty segment is projected to lead the loyalty management market during the forecast period. The growth of this segment of the market can be attributed to increasing adoption of customer loyalty management solutions by various organizations to measure and monitor activities of their customers as well as segment them on the basis of their extent of loyalty and value addition towards businesses of these organizations. The employee retention segment of the market is projected to grow at the highest CAGR during the forecast period. The growth of the employee retention segment of the market can be attributed primarily to additional cost incurred in the acquisition of new employees by varied businesses and increase in employee satisfaction through attractive reward programs.

On the basis of region, the loyalty management market has been segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The North American region is estimated to account for the largest share of the market in 2016. The growth of the North America market can be attributed to the advancements taking place in the region, in terms of mobile technologies. The smart phone market has matured in the North American region and at present, most of the consumers are using various mobile apps to carry out varied transactions. Thus, top vendors are offering technologically advanced loyalty management solutions, specifically for mobile apps. The Latin America loyalty management market is projected to grow at the highest CAGR during the forecast period. The growth of the Latin America market can be attributed to increased card transactions particularly in developing economies, such as Brazil and Mexico and increased investments by customers in various benefit options and vouchers. Offline players are also establishing different online stores to pursue online consumers with collaborative incentive programs.

Loyalty Management Market

Complexity in data synchronization and subjective expectations of customers are some of the factors expected to restrain the growth of the loyalty management market. Most of the vendors have adopted agreements, collaborations, and partnerships as key strategies to enhance their client base and improve their customer experience management offerings. Oracle Corporation (U.S.), IBM Corporation (U.S.), SAP SE (Germany), Aimia Inc. (Canada), Comarch (Poland), Bond Brand Loyalty (Canada), Brierley+Partners (U.S.), Epsilon (U.S.), ICF International, Inc. (U.S.), Kobie Marketing, Inc. (U.S.), TIBCO Software (U.S.), Maritz Holdings Inc. (U.S.), Fidelity Information Services (FIS) (U.S.), MicroStrategy, Inc. (U.S.), and  Lumata Group (U.K.) are some of the major players operating in the loyalty management market. These companies have adopted both, organic as well as inorganic growth strategies to strengthen their position in the market. For instance, Aimia Inc. has focused on developing strategic partnership with SAS Canada, a leading software analytics company, to enhance its data analytics capabilities to offer improved loyalty management to its customers.

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