Loyalty Programs Go Digital

The number of digital loyalty program memberships will exceed 32 billion globally by 2026, up from 24 billion in 2022, representing growth of 33 per cent, says a report from Juniper Research. The report says digital loyalty program are critical to customer retention within highly competitive verticals. To date, innovation has been constrained to the largest vendors in these verticals. However, the proliferation of digital loyalty vendors means that smaller businesses now have access to digital loyalty platforms. To take advantage of this opportunity to improve customer loyalty, the report recommends that digital loyalty vendors must provide the ability to customize and personalize all aspects of the communication and checkout processes. Meanwhile, the research suggests that growth is slowing in the traditional loyalty cards market, as programs switch to digital-focused. It forecasts that the loyalty cards market will stagnate, with growth in the number of cards in circulation of only five per cent between 2022 and 2026, reaching 7.6 billion in 2026 globally.