As of November 2023, approximately four in five adults surveyed in the United States considered customer support, range of options, availability, and data privacy policies as important factors in keeping them loyal to a brand. Brand purpose ranked last among the presented factors, chosen by 62 percent of the respondents.

The need for affiliation (nAff) facet of David McClelland’s (1961) triad of needs is prevalent in psychology, leadership, and business literature. Typically, nAff is referenced in combination with McClelland’s additional two triads: need for achievement (nAch) and need for power (nPow). Isolating the construct of nAff, this study investigates the linkage of affiliation inclination of small business customers to their perceived value of retail servicescapes, filling a gap in the literature on nAff. We analyzed data from 265 small business customers via online questionnaires. The study suggests that servicescapes evoke customers’ feelings and reactions and they subsequently form opinions of the servicescapes and the associative business. The results indicate that customers’ need to be attached to a small business and be satisfied with their experiences with a small business drive customer loyalty. When customers have positive servicescape reactions and become loyal customers, small businesses benefit. Implications for this study’s findings are valuable to small business owners: they might consider servicescape initiatives for their ongoing business success.

According to a 2024 survey conducted in the United States, 81 percent of responding consumers said they purchased from the brand more frequently because they participated in a free loyalty program. Additionally, 76 percent of the U.S. consumers in a free loyalty program noted that they spent more time with the brand due to their participation in the program. A similar share (78 percent) was recorded among consumers in a paid loyalty program.

In 2023, a global survey revealed that top drivers of customer loyalty included offers of good products/services, good customer service support, and low prices. Around six in 10 consumers expressed a preference for companies offering high-quality products or services. This indicates that businesses need to prioritize the quality of their offerings to retain and attract customers.

Customer loyalty no longer a matter of incentives

A 2023 survey revealed that 31 percent of consumers in Australia, Germany, the United Kingdom, and the United States demonstrated true loyalty to a specific retailer, brand, or store. This kind of loyalty was based on genuine brand adherence and it has increased since 2022. Similarly, the so-called silent loyalty, not instigated by any type of advocacy but developed organically, also increased in the course of a year. The only type of loyalty that significantly declined was the incentivized one, driven by discounts and rewards from brands. The data suggests that brand loyalty is becoming less about the perks the company offers and more about its trustworthiness.

Brand loyalty at first sight 

During a May 2023 survey, 78 percent of respondents across various countries agreed that consumers can discover aspects that foster brand loyalty after their initial purchase. This insight emphasizes the importance of companies effectively showcasing their loyalty drivers from the first interaction with a consumer, as it can impact long-term brand loyalty. The data also underscores the need for businesses to focus on delivering positive initial experiences to capture consumer loyalty.

Customer Loyalty Program Software Market size was valued at USD 4.1 Billion in 2024 and is projected to reach USD 10.97 Billion by 2031, growing at a CAGR of 13.07% from 2024 to 2031.

Businesses are increasingly recognizing that maintaining existing clients is more cost-effective than obtaining new ones. Customer Loyalty Program Software offers an organized strategy for rewarding repeat customers, and increasing customer happiness, loyalty, and long-term involvement. Companies dramatically boost the possibility of client repeat purchases by providing targeted rewards and personalized experiences, hence driving market development.

The capacity to collect and evaluate client data is critical when developing an effective marketing strategy. Customer Loyalty Program Software enables organizations to gain deep insights into their customers’ behavior, preferences, and purchasing history. This data enables the optimization of marketing activities and the creation of highly personalized consumer experiences, fueling demand for such software as businesses look to use data to achieve a competitive advantage.

Furthermore, advanced technologies such as artificial intelligence, machine learning, and blockchain have been integrated into Customer Loyalty Program Software to improve its efficiency and security. These technologies allow for the automation of rewards distribution, fraud detection, and the construction of individualized customer experiences. Furthermore, the ability to effortlessly link with other company systems (such as CRM, ERP, and e-commerce platforms) improves the operational efficiency of loyalty programs, driving market growth.

The customer loyalty management software market was valued at USD 9.13 Billion in 2022 and will reach USD 28.91 Billion, with a CAGR of 15.0% from 2023 to 2030 Factors Affecting Customer Loyalty Management Software Market Growth

Customer preference for personalized solutions is growing and driving market expansion: 

In order to generate considerable growth from their incentive programs, key players have included personalization capabilities. This feature helps to catch the attention of customers and enhance their entire experience. Customers expect businesses to earn from them by offering them personalized guidance, discounts, and promotions. Such programs boost customer satisfaction, which encourages their implementation across industries. For instance, Schuh, a contemporary footwear retailer with headquarters in the UK, teamed up with Salesforce.com in April 2021 to create its rewards scheme. The Salesforce Customer 360 Platform-based program's goal is to draw customers.

The Restraining Factor of Customer Loyalty Management Software:

Concerns about data security and a lack of skilled professionals are impeding market growth:

The shortage of qualified personnel to administer and implement loyalty programs is one of the major constraints on the market for customer loyalty management software. Implementing customer loyalty management systems necessitates knowledge of digital technology, data analysis, and consumer behavior. Finding qualified personnel to run these initiatives may be difficult for businesses, which can impede their acceptance and reduce their efficacy. Concerns about data security and privacy may potentially impede the expansion of the customer loyalty management software market.

Impact of the COVID-19 Pandemic on the Customer Loyalty Management Software Market:

The COVID-19 pandemic had a positive impact on the market in terms of the uptake of software. Lockdowns around the nation disrupted almost all industries, including retail, hospitality, transportation, and finance. End-user purchase habits saw a significant adjustment during the epidemic. The pandemic thus had a favorable effect on commercial expansion. Organizations may maintain customer loyalty and trust throughout the epidemic by making consumers feel they are valued, which has given the global customer loyalty management software market a significant boost. Introduction of Customer Loyalty Management Software

The market for customer loyalty management includes efficient and well-thought-out strategies for choosing, managing, relating to, and controlling customers’ purchasing behavior. By giving prizes or rewards for repeat purchases, this technique retains consumers. Due to its importance in vendor strategy, customer loyalty management has an influence on brand value and the capacity of loyalty management programs to both retain existing consumers and draw in new ones.

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Loyalty Management Market Size 2025-2029

The loyalty management market size is forecast to increase by USD 4.97 billion, at a CAGR of 14.5% between 2024 and 2029.

The market is experiencing significant growth due to the increasing customer preference for personalized solutions. This trend is driven by the desire for tailored experiences that cater to individual consumer needs and preferences. Another key factor fueling market growth is the application of artificial intelligence (AI) for innovative loyalty solutions. AI enables businesses to analyze customer data and offer personalized rewards and incentives, enhancing customer engagement and retention. However, the adoption of loyalty programs may be challenged by stringent government regulations, particularly in areas such as data security and privacy. Compliance with these regulations is crucial for businesses to maintain customer trust and ensure the effective implementation of their loyalty initiatives. Overall, the market is poised for continued growth as businesses seek to differentiate themselves and build long-term customer relationships.

What will be the Size of the Loyalty Management Market During the Forecast Period?

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In today's business landscape, merchants and businesses across various industries, including hotels and entertainment, recognize the importance of fostering strong customer relationships. The markets have gained significant traction as a result, offering solutions that enable businesses to engage, retain, and reward their customers effectively. These solutions encompass a range of offerings, from traditional loyalty programs that offer points-based rewards to emerging AI and ML-driven initiatives. Digital transformation has accelerated the adoption of loyalty management software-as-a-service, allowing businesses to harness valuable customer data for insights and personalized experiences. B2C industries, in particular, have embraced this trend, with PayU and TWID loyalty programs being notable examples.
However, the increasing importance of data privacy regulations, such as GDPR and CCPA, necessitates a focus on compliance and security. Key trends In the market include the integration of customer data analytics, pay with points functionality, and the application of AI and ML for predictive modeling and automation. Achieving a strong return on investment (ROI) remains a top priority, making the ability to effectively measure and optimize loyalty program performance crucial. Overall, the market continues to evolve, providing businesses with innovative tools to enhance customer experience and drive long-term customer loyalty.

How is this Loyalty Management Industry segmented and which is the largest segment?

The loyalty management industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  Cloud-based
  On-premises


Type

  Large enterprises
  Small and medium enterprises (SMEs)


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan
    South Korea


  South America



  Middle East and Africa

By Deployment Insights

The cloud-based segment is estimated to witness significant growth during the forecast period.

Cloud-based loyalty management solutions are experiencing significant growth due to their ability to consolidate customer data from a single access point. This feature enhances business agility by enabling real-time updates and global access. Enterprises can benefit from increased visibility and flexibility, accommodating diverse business needs. Cloud-based deployment supports various user-friendly devices, including mobile phones, social media, and tablets. Additionally, cloud software offers cost-effective solutions for tracking customer inquiries and response rates in real-time.

Merchants and businesses across industries, such as manufacturing, transportation, hospitality, and retail, can leverage these platforms to gain valuable insights, enhance customer experience, and foster stronger relationships. Compliance with data security, privacy, and banking industry regulations is essential, ensuring secure customer data management. The adoption of AI, machine learning, and predictive analytics further enhances customer retention and sales growth.

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The cloud-based segment was valued at USD 3.1 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 49% to the growth of the global market during the forecast period.

Technavio's analysts have elabora

Market Analysis: Customer Loyalty Management Software The global customer loyalty management (CLM) software market stood at USD 2629 million in 2025 and is projected to reach USD 3572 million by 2033, exhibiting a CAGR of 3.4%. Key market drivers include the growing adoption of digital channels, the increasing need for personalized customer experiences, and the desire to enhance customer retention. Cloud-based deployments and SME applications are gaining traction, while North America remains the largest regional market. Market Trends and Restraints Key market trends include the integration of artificial intelligence (AI) and machine learning (ML) for personalized recommendations and automated loyalty programs. The increasing focus on customer data privacy poses a restraint, as businesses must comply with regulations such as GDPR. Additionally, the fragmented nature of the market, with numerous vendors offering niche solutions, can be a challenge for businesses seeking a comprehensive CLM solution. Key market players mentioned in the analysis include Oracle, SAP, Salesforce, and IBM, among others.

The global digital loyalty program market is experiencing robust growth, driven by the increasing adoption of digital technologies and the growing preference for personalized customer experiences. The market, currently valued at approximately $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This expansion is fueled by several key factors, including the rise of omnichannel strategies, the increasing use of data analytics for personalized loyalty programs, and the growing adoption of cloud-based loyalty solutions offering scalability and flexibility. Businesses across various sectors, notably BFSI, travel & hospitality, and consumer goods & retail, are increasingly leveraging digital loyalty programs to enhance customer engagement, drive repeat purchases, and improve customer lifetime value. The market's segmentation reveals a strong preference for cloud-based solutions, reflecting the industry's shift towards agile and cost-effective technologies.
Significant regional variations exist, with North America and Europe currently dominating the market due to high technological adoption rates and a strong presence of established loyalty program providers. However, regions like Asia-Pacific are exhibiting accelerated growth, fueled by increasing smartphone penetration and a rising middle class with a growing propensity for digital engagement. While the market faces challenges like data privacy concerns and the complexity of integrating loyalty programs with existing systems, these are being addressed through innovative solutions and evolving regulations. The consistent adoption of advanced analytics and AI-powered personalization features is expected to further propel market expansion, solidifying the digital loyalty program's crucial role in the future of customer relationship management.

According to Cognitive Market Research, the global Loyalty Management market size will be USD 25.4 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 17.3% from 2024 to 2031. Market Dynamics of Loyalty Management Market

Key Drivers for Loyalty Management Market

Growing Application of Artificial Intelligence for Innovative Solutions-One of the main reasons the Loyalty Management market is increasing the application of artificial intelligence (AI) for innovative solutions. AI-powered tools enable companies to analyze vast amounts of customer data, predict behaviors, and personalize rewards programs more effectively. These solutions enhance customer engagement by delivering tailored experiences and offers, thereby increasing satisfaction and retention rates. AI also automates and optimizes various loyalty program processes, reducing operational costs and improving efficiency. Additionally, AI-driven insights help in detecting and preventing fraudulent activities, ensuring the integrity of loyalty programs.
The increasing customer preference for personalized solutions to drive the Loyalty Management market's expansion in the years ahead.

Key Restraints for Loyalty Management Market

Stringent Government regulations pose a serious threat to the Loyalty Management industry.
The market also faces significant difficulties related to data security and privacy.

Introduction of the Loyalty Management Market

The Loyalty Management Market encompasses systems and strategies designed to retain customers by rewarding their repeat business, fostering brand loyalty, and encouraging customer engagement. This market is segmented by type, deployment, organization size, end-user industry, and region. Types include customer loyalty, employee retention, and channel loyalty management. Deployment can be cloud-based or on-premises, catering to different organizational needs. Organizations of varying sizes, from SMEs to large enterprises, utilize these solutions. End-user industries span retail, hospitality, BFSI, healthcare, and IT & telecom, each with unique loyalty program requirements. Geographically, the market covers North America, Europe, Asia Pacific, Latin America, and MEA, each exhibiting distinct growth drivers and adoption trends. As businesses increasingly recognize the value of customer retention over acquisition, the loyalty management market is poised for significant growth, driven by advancements in technology and the rising importance of personalized customer experiences.

The data set consists of the answers to the survey, which is published on the website of the Ministry of Transport and Communications of the Republic of Lithuania at https://sumin.lrv.lt/lt/apklausos11/asmenu-apklausos-anketa-1. The survey is conducted annually from 2019. Data are updated at the end of each year.

During a 2023 survey, 64 percent of responding consumers from the United Kingdom stated that they considered themselves loyal to certain retailers, brands, or stores. A year earlier, the share stood at 73 percent.

Loyalty Management Market size was valued at USD 25.57 Billion in 2024 and is projected to reach USD 72 Billion by 2031, growing at a CAGR of 15.24% from 2024 to 2031.

Global Loyalty Management Market Drivers

Increased Competition: In today’s competitive landscape, businesses must differentiate themselves by providing exceptional customer experiences and building loyalty.
Customer Retention: Loyal customers are more likely to repeat purchases and recommend a brand to others, driving long-term revenue growth.
Data-Driven Marketing: Loyalty programs generate valuable customer data that can be used to personalize marketing campaigns and improve customer experiences.

Global Loyalty Management Market Restraints

High Costs: Implementing and managing a loyalty program can be costly, especially for small businesses.
Complexity: Designing and managing effective loyalty programs requires careful planning and execution.

The United States loyalty management market size was valued at USD 1,141.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 4,724.0 Million by 2033, exhibiting a CAGR of 17.1% from 2025-2033. The market is majorly driven by the rising adoption of customer retention strategies, integration of AI and data analytics for personalized rewards, increasing preference for omnichannel loyalty programs, adoption of blockchain for secure transactions, focus on sustainability in rewards, strategic collaborations, growing use of mobile platforms, and subscription-based models fostering long-term engagement.

IMARC Group provides an analysis of the key trends in each segment of the United States loyalty management market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, organization size, deployment mode, and industry vertical.

Success.ai’s Consumer Marketing Data API empowers your marketing, analytics, and product teams with on-demand access to a vast and continuously updated dataset of consumer insights. Covering detailed demographics, behavioral patterns, and purchasing histories, this API enables you to go beyond generic outreach and craft tailored campaigns that truly resonate with your target audiences.

With AI-validated accuracy and support for precise filtering, the Consumer Marketing Data API ensures you’re always equipped with the most relevant data. Backed by our Best Price Guarantee, this solution is essential for refining your strategies, improving conversion rates, and driving sustainable growth in today’s competitive consumer landscape.

Why Choose Success.ai’s Consumer Marketing Data API?

1. Tailored Consumer Insights for Precision Targeting

   • Access verified demographic, behavioral, and purchasing data to understand what consumers truly value.
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Data Highlights:

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Key Features of the Consumer Marketing Data API:

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Strategic Use Cases:

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4. Customer Retention and Loyalty Programs

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   • Cultivate brand advocates by delivering personalized offers and exclusive perks to loyal consumers.

Why Choose Success.ai?

1. Best Price Guarantee

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4. Customizable and Scalable Solutions

   • Tailor datasets to focus on specific demog...

Envestnet®| Yodlee®'s Consumer Purchase Data (Aggregate/Row) Panels consist of de-identified, near-real time (T+1) USA credit/debit/ACH transaction level data – offering a wide view of the consumer activity ecosystem. The underlying data is sourced from end users leveraging the aggregation portion of the Envestnet®| Yodlee®'s financial technology platform.

Envestnet | Yodlee Consumer Panels (Aggregate/Row) include data relating to millions of transactions, including ticket size and merchant location. The dataset includes de-identified credit/debit card and bank transactions (such as a payroll deposit, account transfer, or mortgage payment). Our coverage offers insights into areas such as consumer, TMT, energy, REITs, internet, utilities, ecommerce, MBS, CMBS, equities, credit, commodities, FX, and corporate activity. We apply rigorous data science practices to deliver key KPIs daily that are focused, relevant, and ready to put into production.

We offer free trials. Our team is available to provide support for loading, validation, sample scripts, or other services you may need to generate insights from our data.

Investors, corporate researchers, and corporates can use our data to answer some key business questions such as: - How much are consumers spending with specific merchants/brands and how is that changing over time? - Is the share of consumer spend at a specific merchant increasing or decreasing? - How are consumers reacting to new products or services launched by merchants? - For loyal customers, how is the share of spend changing over time? - What is the company’s market share in a region for similar customers? - Is the company’s loyal user base increasing or decreasing? - Is the lifetime customer value increasing or decreasing?

Additional Use Cases: - Use spending data to analyze sales/revenue broadly (sector-wide) or granular (company-specific). Historically, our tracked consumer spend has correlated above 85% with company-reported data from thousands of firms. Users can sort and filter by many metrics and KPIs, such as sales and transaction growth rates and online or offline transactions, as well as view customer behavior within a geographic market at a state or city level. - Reveal cohort consumer behavior to decipher long-term behavioral consumer spending shifts. Measure market share, wallet share, loyalty, consumer lifetime value, retention, demographics, and more.) - Study the effects of inflation rates via such metrics as increased total spend, ticket size, and number of transactions. - Seek out alpha-generating signals or manage your business strategically with essential, aggregated transaction and spending data analytics.

Use Cases Categories (Our data provides an innumerable amount of use cases, and we look forward to working with new ones): 1. Market Research: Company Analysis, Company Valuation, Competitive Intelligence, Competitor Analysis, Competitor Analytics, Competitor Insights, Customer Data Enrichment, Customer Data Insights, Customer Data Intelligence, Demand Forecasting, Ecommerce Intelligence, Employee Pay Strategy, Employment Analytics, Job Income Analysis, Job Market Pricing, Marketing, Marketing Data Enrichment, Marketing Intelligence, Marketing Strategy, Payment History Analytics, Price Analysis, Pricing Analytics, Retail, Retail Analytics, Retail Intelligence, Retail POS Data Analysis, and Salary Benchmarking

1. Investment Research: Financial Services, Hedge Funds, Investing, Mergers & Acquisitions (M&A), Stock Picking, Venture Capital (VC)

2. Consumer Analysis: Consumer Data Enrichment, Consumer Intelligence

3. Market Data: AnalyticsB2C Data Enrichment, Bank Data Enrichment, Behavioral Analytics, Benchmarking, Customer Insights, Customer Intelligence, Data Enhancement, Data Enrichment, Data Intelligence, Data Modeling, Ecommerce Analysis, Ecommerce Data Enrichment, Economic Analysis, Financial Data Enrichment, Financial Intelligence, Local Economic Forecasting, Location-based Analytics, Market Analysis, Market Analytics, Market Intelligence, Market Potential Analysis, Market Research, Market Share Analysis, Sales, Sales Data Enrichment, Sales Enablement, Sales Insights, Sales Intelligence, Spending Analytics, Stock Market Predictions, and Trend Analysis

How the data was compiled:
The grocery purchase data including 3574 product groups was received from the retailer for research purposes. The data was reclassified into appropriate categories suitable for the use of nutrition and health research.

How the data has been handled:
A four-level hierarchical classification of product groups was used. Each class on the broadest level of hierarchy (Class 1) was subsequently divided into a reasonable number of finer sub-classes starting with Class level 2, followed by Class 3, and finally, Class 4, which was the most detailed level of hierarchy. The main ingredient of the product group, type of the food and purpose of use, nutritional content, and carbon footprint were considered in the reclassification process. The classified food groups were linked with Finnish food composition database.

How the data can be used for research:
The re-classified data can be used to measure can be used to infer and describe food purchase patterns, monitor of the nutrition composition of food purchases, monitoring and evaluating dietary environmental and economic sustainability, and deriving consumer segments based on the re-classification.

The authors strongly recommend reading the detailed description of the classification is published in https://doi.org/10.21203/rs.3.rs-2826970/v1.

The Customer Feedback Software market is experiencing robust growth, projected to reach $1653.5 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 12.2% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing adoption of digital channels across various industries necessitates efficient and effective feedback mechanisms for understanding customer preferences and improving products/services. Businesses are increasingly recognizing the strategic value of customer feedback in driving customer loyalty, enhancing brand reputation, and improving operational efficiency. Secondly, the rise of cloud-based solutions offers scalability, accessibility, and cost-effectiveness, further fueling market growth. Finally, the proliferation of advanced analytics capabilities within these platforms allows businesses to derive actionable insights from customer feedback, fostering data-driven decision-making. The market is segmented by deployment type (cloud-based and web-based) and target customer size (large enterprises and SMEs). Cloud-based solutions are currently dominating the market, leveraging their inherent flexibility and ease of integration. Large enterprises are the primary adopters, primarily due to their higher budget allocations and greater need for sophisticated data analysis. However, SMEs are increasingly embracing these solutions, recognizing the importance of customer-centric strategies in a competitive landscape. Geographical distribution shows North America and Europe currently holding significant market share, but the Asia-Pacific region is expected to witness rapid growth in the coming years due to increasing internet penetration and digitalization. The competitive landscape is characterized by a blend of established players like HubSpot, Zendesk, and Qualtrics, alongside niche players specializing in specific feedback channels (e.g., Bazaarvoice for reviews). Future market growth will be influenced by advancements in AI-powered sentiment analysis, the integration of feedback tools across diverse customer touchpoints, and the development of more personalized customer experience strategies. The ongoing focus on data privacy and security will also be a key consideration for businesses selecting feedback software solutions, necessitating robust security measures and compliance with relevant regulations. Continued innovation in features and functionality, along with strategic partnerships and acquisitions, will shape the future competitive dynamics of this dynamic market.

This statistic shows the results of a 2016 survey in which consumers in Germany were asked how important the following factors are for them when it comes to collecting personal data in the context of a loyalty program. For those surveyed, transparency and understandable terms and conditions appear to be most crucial when using loyalty programs, with 57 percent percent of respondents quoting these factors as quite important.