Loyalty Programs Evolving As They Grow

The market for global loyalty programs is forecast to show strong growth with a compound annual growth rate (CAGR) of 12.2 per cent through 2026, says a report from ResearchAndMarkets.com. This is up from a CAGR of 11.8 per cent during 2017 to 2021. Loyalty programs are popular because they are able to establish relationships with customers, drive product usage and repeat sales, and, most significantly, create customer retention. Moving forward, strategic partnerships and technological advancements are creating loyalty programs that are better than ever. Post pandemic, rewards programs are paying off for brands and businesses because they help bridge any gaps that may rest between channels as consumer behaviour settles. Programs are now able to offer a more personalized experience because they are connected to billing and point of sale payment terminals, thereby capturing important consumption habits and other data that can by analyzed. This is then converted into analytics and business intelligence, helping retailers increase their business growth. Loyalty programs providers are also partnering with other businesses such as financial firms and credit card companies to create stronger and increased options within their loyalty programs. Another developing trend is online marketplaces offering AI (artificial intelligence) and blockchain-enabled reward platforms.