Loyalty Card System Market Scope
A loyalty card programme is a type of incentive programme that allows a retailer to collect information about its customers. In exchange for their voluntary participation in the programme, customers are offered product discounts, coupons, points toward merchandise, or some other reward. Loyalty cards are frequently shaped like plastic credit cards, but they can also take the form of keychain fobs or stickers. A loyalty card typically has a barcode or magnetic stripe that is scanned at the point of sale (POS). The card recognises the customer and sends information about the items purchased to a database. The database information is used to assist the retailer in understanding and influencing his customers' purchasing habits.
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
Unit | Value (USD Million) |
Key Companies Profiled | Amazon (United States), Apple (United States, American Express (United States), Sephora (France), The North Face (United States), Starbucks (United States), Chipotle (United States), DSW (United States), Barnes & Noble (United States) and The Body Shop (United Kingdom) |
CAGR | % |
The market has seen a good amount of technological advancement in the digitization of business, which brought convenience in reaching out to customers, and also a method to develop customer retention which does generate a good amount of business for existing players. This makes the market competitive and keeps it growing at a steady rate. Also, growth in e-commerce and online payments are rising, making existing players adopt new strategies to retain customers. The existing players are trying to establish a better technology to withhold a sufficient market share and thus are also exploring mergers and acquisitions, and investments also are launching new and better services. Research Analyst at AMA estimates that United States Vendors will contribute to the maximum growth of Global Loyalty Card System market throughout the predicted period.
Amazon (United States), Apple (United States, American Express (United States), Sephora (France), The North Face (United States), Starbucks (United States), Chipotle (United States), DSW (United States), Barnes & Noble (United States) and The Body Shop (United Kingdom) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research are E.l.f (United States), Tarte cosmetics (United States) and Klarna (Sweden).
About Approach
The research aims to propose a patent-based approach in searching for potential technology partners as a supporting tool for enabling open innovation. The study also proposes a systematic searching process of technology partners as a preliminary step to select the emerging and key players that are involved in implementing market estimations. While patent analysis is employed to overcome the aforementioned data- and process-related limitations, as expenses occurred in that technology allows us to estimate the market size by evolving segments as target market from the total available market.
Segmentation Overview
The study have segmented the market of Global Loyalty Card System market by Type (Point-based loyalty card, Paid loyalty card, Tiering loyalty card, Engagement loyalty card and Community loyalty card), by Application (Automobile, Construction, Electronics, Fashion and Other) and Region with country level break-up.
On the basis of geography, the market of Loyalty Card System has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
region held largest market share in the year 2021.
Market Leaders and their expansionary development strategies
Klarna, a leading global retail bank, payments, and shopping service in June 2022 announced the launch of its new Loyalty Card feature in the Klarna App. This allows app users to store and access their physical loyalty cards as digital versions. They can then collect all points and benefits at any merchant without the need to carry plastic equivalents while out shopping in-store. Powered by the acquisition of mobile wallet provider, Stocard, the primary consumer offering now integrates into the Klarna App as a means of further establishing an all-in-one experience that drives convenience and value to consumers' shopping journey.
Chipotle Mexican Grill, in June 2022 announced it has officially launched its loyalty program, Chipotle Rewards, in Canada. This is the latest advancement in Chipotle's efforts to make the brand more accessible and strengthen its relationship with its Canadian community. Chipotle implemented its U.S. loyalty program in 2019 and in only three years, 28 million members have enrolled, making it among the fastest-growing loyalty programs in the history of the restaurant industry.
Regulation (EC) No 45/2001 of the European Parliament and of the Council (2) applies to the processing of personal data by the Union institutions, bodies, offices, and agencies. Regulation (EC) No 45/2001 and other Union legal acts applicable to such processing of personal data should be adapted to the principles and rules established in this Regulation and applied in the light of this Regulation. In order to provide a strong and coherent data protection framework in the Union, the necessary adaptations of Regulation (EC) No 45/2001 should follow after the adoption of this Regulation, in order to allow application at the same time as this Regulation
Loyalty Card System Market Dynamics:
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Trends Influencing Market | - Due to the Rapid Growing Digitization of the Market businesses are Trying to Make Customers Do More Repeat Purchases rather Than Finding New Customer Base and Reduce Operation costs.
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Key Restraints | - Government Regulations on Data Protection are affecting the Loyalty Card System Market.
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Challenges | - Technological Limitations Will Raise Cost If the Program Is Put for Customization as It Runs on SaaS Model.
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Market Opportunities | - An increase in AI and MI Investments for R&D and Deployments is going to Develop Many Opportunities for Loyalty Card System Market.
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Key Target Audience
E-commerce, Cosmetic brands, Automobile manufacturers, Electronics manufacturers, New Entrants and Investors, Legalized Cannabis Distributors and Suppliers, Venture Capitalists, Government Bodies, Corporate Entities, Government and Private Research Organizations and Others