NEW YORK, Sept. 11, 2019 /PRNewswire/ --
Market Overview
The Asia-Pacific loyalty
management market was valued at USD 592.3
million in 2018, and it is expected to reach a value of
USD 2,297.3 million by 2024,
registering a CAGR of 25.1% over the forecast period (2019 - 2024).
Loyalty management solutions are being adopted by many companies
across various industry verticals, whose primary focus is on client
retention and further building sustainable customer relationships
through these programs.
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- Increasing customer retention helps in boosting profits
because loyal customers have trust in a brand which encourages
repurchase. Implementing a loyalty program is basically an
investment as customer retention strategies are less expensive when
compared to acquiring new customers. Gaining new customers can be
25% more expensive than retaining current customers.
- Loyalty programs in the retail sector have also been growing
significantly in the region in recent years and are playing a
strong role in influencing consumers choices. For instance, in
2019, Carrefour China launched a 100% digital loyalty program. The
company has entered into agreements with WeChat, Tencent, and Google for making headway in its
digital transformation.
- However, lack of awareness is a major challenge to the growth of
the loyalty management market in the region. Research indicates
that only a small portion of customers are aware of the loyalty
benefits provided by an organization. Lack of awareness could be a
major challenge restricting widespread adoption of loyalty
management solutions in the market.
Scope of the Report
Loyalty management is an approach to the marketing of products,
based on strategic management, in which a company focuses on
increasing new customer base and retaining existing customers
through various types of incentives and offers.
Key Market Trends
BFSI Segment to Witness the Highest Growth
- In a highly competitive, complex, and dynamic banking industry,
slight differences in financial services and products can matter.
Most of the banks are trying to be the "ideal" bank for their
customers in exchange for trusted and profitable relationships.
This, together with an increasingly-demanding customer base, has
led to the transformation of the industry toward adopting loyalty
management solutions.
- Reward points plans offered by credit cards are also one of the
most active zones in the reward and incentive space. Loyalty
management has been the refuge for the banking industry, as banks
look to attain a high customer retention rate.
- The market in Asia-Pacific
region is also witnessing collaborations in cross-industry loyalty
program launches with financial sector witnessing increased
acceptance of loyalty programs. For instance, OCBC Bank and Star
Hub are jointly developing Singapore's loyalty alliance, so that
Singaporean customers will be able to exchange, consolidate, and
redeem loyalty rewards, such as reward points and air miles earned
from market-leading partners across industries.
China Occupies the Largest Market Share
- Retail loyalty programs are well established in China, dating back to the mid-to-late 1990s.
Although the participation is lower in China (61% of consumers), due to collectivist
consumer behavior, the Chinese retailers are now focusing more on
loyalty programs.
- One of the major reasons for this change is the exponential
growth in the E-commerce sector of the country. With more than
413.3 million online shoppers, the region had a turnover of
USD 681.9 billion in 2017.
- Moreover, mobile payment systems are already shaping Chinese
commerce, and this latest change could allow US-based companies
access to that economy.
- Many Chinese consumers already use mobile payments, typically via
QR codes, to settle doctor bills, order food, hail rides, pay
utility bills, and buy goods. Providers are expected to bring new
innovations and expand the mobile payment ecosystem. With this
increasing mobile payment systems, 73% of consumers are more likely
to join loyalty programs, if points and rewards are automatically
updated.
Competitive Landscape
The Asia-Pacific loyalty
management market is highly competitive owing to the presence of
many large and small players in the market. The market appears to
be moderately concentrated with the players in the market adopting
strategies like product innovation, partnerships, and mergers and
acquisitions to stay ahead of the competition. Some of the major
players in the market are IBM Corporation, Oracle Corporation, SAP
SE, Edenred among others.
- March 2019 - TIBCO announced a
partnership with NTTCom Online Marketing Solutions Corporation.
Through this partnership, NTTCom Online is expected to become
TIBCO's preferred partner in Japan, taking over the responsibility for all
the sales and client support activities, for the Japanese
subsidiary of TIBCO.
- January 2019 - SAP acquired
Qualtrics International Inc., a provider of customer relationship
management solutions. This combination accelerates the experience
management category by combining Qualtrics' data with operational
data from SAP software to power the economy. Both companies will
offer businesses the means to deliver exceptional customer,
product, employee, and brand experiences.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
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