Customer loyalty: the loyalty management market

In summary, the report from which we take these data is the Loyalty Big Picture Report, published by the LoyaltyOne company, market leader in the segment of loyalty programs, for large companies whose precious interviews were carried out on five of the most important markets. where loyalty programs are far more advanced than ours, and which are: United States, United Kingdom, Brazil, Singapore and Canada.
Within these five states, the USA and UK are the most mature markets for electronic commerce but also for everything concerning loyalty systems.

The respondents are 5,700 of which 4,500 are members of B2C loyalty programs (i.e. end customers who come to points of sale with a loyalty card) and 1,200 are operators, i.e. large companies or commercial chains that have issued their customers a targeted loyalty program.

Now let's see how the loyalty market can be measured and, above all, if we can measure how much it is.

We can see how the figures are extremely important starting from the 75 billion spent annually in loyalty systems (we repeat, in the countries traced) while, as regards the execution strategies through CRM systems, therefore systems that incorporate all the system work and company data (for a value of 51 billion) while for reading and transaction systems (scanners, cash desks rather than magnetic storage systems which can also be our good loyalty cards), we are talking about current expenditure of 46 billion to reach an extremely large expense of 151 billion that are allocated for advertising and brand awareness services, spent to have digital campaigns used, both directly to sell, but also to ensure that your brand circulates and spreads as much as possible and always remain in the memory of potential customers / consumers.

We arrive at a total of investments equal to about 323 billion dollars only in the countries monitored.

But we must also consider that there is the whole Asian part that is really advancing at an impressive rate, so much to cite some examples we have Alibabà (Aliexpress) which is growing at a very high rate and is reaching market share as much as possible, Year after year.

According to one of the operators interviewed, the growth in this field is still very low and measured around 10 / 15% because when we talk about digital we are talking about a world still truly to be discovered but above all to be built, given the backward conditions in which the bulk of the sectors pays, consequently, the 10 / 15% we are measuring is not the desired as far as loyalty systems are concerned.

At this point we are preparing for a question that could even be rhetorical, that is… Despite all this money invested, what would be or what should be the reasons for increasing even more investments in customer loyalty systems?

All chapters of: Loyalty 2.0

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