RALEIGH, North Carolina, Feb. 13, 2019 /PRNewswire/ -- The global market for loyalty programs is expected to reach $201 billion by 2022, representing a compound annual growth rate (CAGR) of four to five percent, according to Beroe Inc., a leading global procurement intelligence firm. The rise of mobile shopping—bolstered by wide-scale adoption of smartphones and surging consumer preference for online shopping—is a key driver of this expanding market, generating new demand for customizable loyalty programs, analytics and business intelligence.
"Today's consumer has 24/7 access to an infinite array of products and services on their mobile devices," said Harish Soundararajan, Research Manager, Indirect Services at Beroe Inc. "Companies across the e-commerce and financial services industries are tapping into this lucrative opportunity for competitive advantage—offering enticing rewards and incentives to drive customer loyalty."
Although the global market for loyalty programs is on a strong growth trajectory, demand varies substantially by geographic region. North America and Europe are the leading markets for loyalty programs, with e-commerce driving strong market maturity. Spurred by large concentrations of regional and global suppliers with established technology platforms, the Asia Pacific region is a future growth-driving market for loyalty programs, with companies offering comprehensive catalogs of customer rewards. In the Middle East and Africa, less developed infrastructure and connectivity can impede the ability of companies to source and deliver rewards—translating to a low adoption rate. However, this market is projected to grow at a CAGR of four to six percent over the next three years, outpacing the growth rate of Europe and North America.
As the market for loyalty programs continues to evolve, there is growing demand for customizable digital reward programs that leverage data analytics and business intelligence. Insights on mobile shopping, consumer social media influence and how online shopping impacts in-store traffic can be used to offer customized rewards that reflect individual consumer preferences. This high level of personalization is driving higher costs for retailers that are subsequently passed on to consumers.
"The proliferation of the global loyalty programs market comes at a turbulent time for the retail, consumer goods and financial sectors," said Valekumar Krishnan, Vice President, Beroe Inc. "These industries are undergoing major disruption due to global digitization. However, forward-thinking companies can align their product offerings with business analytics and performance-based metrics offered by loyalty program vendors to capitalize on today's shifting consumer preferences."
The methodology adopted for this research follows Beroe's unique 3C approach: data confidence, data coverage and data credibility. Powering its 3C approach are experts with twenty years of domain experience, comprehensive interaction with buyers and in-depth inputs from supply chain partners. The full report can be accessed by procurement professionals on Beroe's innovative, on-demand market intelligence platform, Beroe LiVE: live.beroeinc.com.
About Beroe Inc.
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.