The Loyalty Industry is Big

...and it's only getting bigger

Not only is the industry big, it’s also growing. There’s growth in Asia-Pacific, with China, India and southwest Asia dialing up their digital platforms. There is also growth in existing programs. In fact, 69% of C-Suite executives in our research reported that their loyalty investments have grown in the past two years, and over half (55%) report that their investments will continue to grow in the next two years.

Reasons why companies increased loyalty investment in the past two years:

1. (42%) Program membership showed growth
2. (36%) In order to make technical improvements
3. (35%) Strong program performance supported case for increased investment
4. (34%)

   Leadership placing more strategic importance on loyalty programs /
   Strong performance from competitors
5. (33%)

   To increase acquisition efforts through loyalty program /
   New competitors in market
6. (30%) Need to increase value provided to loyalty members

This last stat is the most surprising. Only 30% of companies are increasing their investment with an eye to create more customer value. The fact is, many loyalty operators benchmark against the competition and take their lead from market forces, not realizing that demand is being shaped by their customer. While the tools for uncovering customer needs and identifying potential exist in the data that loyalty programs collect, few are digging in and realizing the benefits.

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