Customer loyalty management software is a specialized digital solution designed to help businesses enhance customer retention and engagement by managing loyalty programs and personalized marketing strategies. The software enables companies to create, track and optimize loyalty initiatives that reward customers for repeat purchases, engagement and brand advocacy.
The customer loyalty management software market consists of sales, by entities (organizations, sole traders, or partnerships), of customer loyalty management software that develop and provide software solutions and related services for customer loyalty management. These solutions help businesses track customer interactions, analyze purchase behavior and implement tailored reward programs such as point-based systems, cashback offers, discounts and tiered memberships.
The global customer loyalty management software market was valued at $5,925.90 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 17.00%.
Significant Adoption Of Automation
The significant adoption of automation helped the growth of the customer loyalty management software market during the historic period. Automation refers to the use of technology, systems, or processes to perform tasks with minimal human intervention. Automation enables CLM software to analyze customer behavior in real time, delivering personalized offers, rewards and recommendations without manual intervention, significantly improving customer retention rates. For instance, in April 2023, according to the survey by Salesforce, a US-based cloud-based software company, on the Harvard Business Review site, a US-based general management magazine, over 90% of workers reported increased productivity due to automation solutions, 85% said these tools enhanced team collaboration and nearly 90% trusted automation to reduce errors and make faster decisions. Therefore, the significant adoption of robotics and automation drove the growth of the customer loyalty management software market in the historic period.
AI-Powered SaaS Loyalty Solutions Transforming Customer Engagement
Leading companies in the customer loyalty management software market are prioritizing the development of innovative solutions, such as AI-powered SaaS-based loyalty offerings, to enhance customer engagement, personalize rewards programs and improve retention. These AI-driven, cloud-based platforms optimize customer interactions, reward personalization and retention strategies. For example, in July 2024, Flaunt Software, Inc., a US-based enterprise loyalty management platform provider, introduced an AI-enabled SaaS loyalty solution designed for Shopify merchants. Unveiled at Revision Skincare's annual Elite Retreat in Dallas, the platform delivers expert-crafted, visually engaging loyalty programs while offering fractional loyalty management services. Overall, Flaunt's offering is poised to revolutionize the e-commerce loyalty landscape by empowering Shopify merchants to retain customers and drive business growth through data-driven strategies and AI-driven personalization.
The global customer loyalty management software market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 14.67% of the total market in 2023.
Customer Loyalty Management Software Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the customer loyalty management software market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for customer loyalty management software? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The customer loyalty management software market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider customer loyalty management software market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by deployment, by operator, by applications and by end user.
- Key Trends - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis - Framework Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods
- Regional And Country Analysis - Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation - Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component, by deployment, by operator, by applications and by end user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth - Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Landscape - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking - Briefs on the financials comparison between major players in the market.
- Competitive Dashboard - Briefs on competitive dashboard of major players.
- Recent Developments - Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for customer loyalty management software market providers in terms of product/service offerings geographic expansion, marketing strategies and target groups next five years.
- Appendix - This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Software; Services
- 2) By Deployment: On-Premise; Cloud
- 3) By Operator: Business To Business; Business To Customer
- 4) By Applications: Campaign Management; Reward Distribution; Short Message Service (SMS) Marketing; Other Applications
- 5) By End-User: Banking, Financial Services And Insurance; Information Technology And Telecommunications; Transportation; Retail; Hospitality; Manufacturing; Media And Entertainment; Other End Users
- Companies Mentioned: Epsilon Data Management LLC; Oracle Corporation; Salesforce Inc.; Yotpo Inc.; Brierley+Partners Inc.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; customer loyalty management software indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.