New York, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "APAC Loyalty Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06484010/?utm_source=GNW
The APAC Loyalty Management Market size is expected to grow from USD 2.69 billion in 2023 to USD 6.99 billion by 2028, at a CAGR of 21.06% during the forecast period (2023-2028).
Loyalty management solutions are being used by many companies in many different industries. The main goal of these programs is to keep customers and build long-term relationships with them.
Key Highlights
Increasing customer retention boosts profit margins and provides a stable income source. While implementing a loyalty program is an investment, customer retention strategies are less expensive when compared to attracting new customers. Adding new customers can be 25% more expensive than retaining current ones. Thus, having a loyalty program could be the biggest revenue generator for a company and lower user acquisition costs.
In Southeast Asia, loyalty programs are becoming more popular because more people are using social media, more people are getting online, and the e-commerce industry is growing.Malaysia, the Philippines, Singapore, and Indonesia are the next biggest countries that drive, after Vietnam and Thailand.
People thought that the change in consumer attitudes would last longer than COVID-19.As a result, many businesses were expected to invest heavily in loyalty management programs to retain new customers and reclaim lost ones. As a result, the program’s demand was expected to surge following the pandemic.
The loyalty management platform, which lets organizations keep track of loyalty programs, is expected to be driven by the growth of loyalty programs by different regional companies.For instance, in June last year, Japan compensated consumers for using ridesharing services, investing in energy-efficient household equipment, or avoiding single-use plastics. The program is part of a larger government push to aid many firms, including e-commerce juggernaut Rakuten Group Inc. and mall operator Aeon Mall Co., that are extending loyalty point systems to encourage customers to make more environmentally friendly shopping decisions. The massive initiative is Japan’s latest attempt to persuade people to modify their habits to tackle climate change.
But a big problem for the growth of the APAC loyalty management market is that not enough people know about it. Customers need to be made aware of the loyalty benefits provided by an organization. Lack of awareness could be a major challenge restricting the widespread adoption of loyalty management solutions.
APAC Loyalty Management Market Trends
BFSI Segment is Expected to Witness the Highest Growth
In a highly competitive, complex, and dynamic banking industry, slight differences in financial services and products can matter. Most banks are trying to be "ideal"for their customers in exchange for trusted and profitable relationships. This, together with an increasingly demanding customer base, has led to the industry’s transformation toward adopting loyalty management solutions.
Card transactions are growing quickly in the APAC region, especially in countries like India, China, and Japan.The growth in card transactions is fueled by lifestyle shopping due to rising middle-class incomes, presenting significant growth potential for loyalty programs.
With more competition and customers who are quick to switch banks if their current ones aren’t helpful, banks are making loyalty programs that are completely tailored to each customer.
Various regional BFSI companies are raising investments to maintain their market position. For instance, in October last year, Juno, a Singapore-based crypto banking business, secured USD 18 million in a Series A fundraising round and introduced JCOIN, a loyalty token. According to CoinDesk, the investment will be used to extend and enhance the company’s product suite and operations and promote the introduction of its loyalty token, Juno Coin (JCOIN), which will be available to verified account users.
Also, as more banks and financial institutions open in places like Singapore, India, China, and others, the demand for loyalty management in the region is likely to rise.
The market is also seeing companies from different industries work together to launch loyalty programs, and loyalty programs are becoming more popular in the financial sector. 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 participation is lower in China (61% of consumers) due to collectivist consumer behavior, Chinese retailers now focus more on loyalty programs.
The China Internet Network Information Centre says that as of December 2021, nearly 842 million Chinese people had done business online. This is a 38% increase from 2018.With online sales growing so quickly, e-commerce platforms and other businesses can offer loyalty programs to make more money.This will bring in technologies for loyalty management platforms that will let online businesses make and run reward programs.
In China, e-commerce has grown a lot in the last two or three years, and with it, the loyalty and rewards programs business has grown a lot as well.Also, e-commerce platforms for more than one type of product started offering loyalty programs to gain market share and make more money.When compared to Western norms, these campaigns had positive outcomes for e-commerce players.
KFC China announced in December 2021 that it would start a three-week green incentives program to encourage and reward customers for doing things that help cut down on carbon.Customers are given rewards for things like ordering on their phones, not using disposable cutlery, wasting less food, canceling orders, and picking up their food in the store.
E-commerce companies are also working with technology companies to improve their loyalty programs and get a bigger share of the market. For example, to get ahead of Alibaba, JD.com teamed up with Walmart and Tencent Holdings to share customer data and operational systems. Walmart and JD.com integrated their customer loyalty systems for stores in China (where Walmart has 400 stores). Therefore, the increased average consumer spending has resulted in increased loyalty programs retailers offer.
APAC Loyalty Management Industry Overview
There are a lot of big and small players in the Asia-Pacific loyalty management market, so it is very competitive.Some of the major players in the market are Aimia Inc., Edenred SA, Comarch SA, Epsilon Data Management LLC, and Maritz Holdings Inc. The market seems to have about the right amount of competition, with players using strategies like new products, partnerships, and mergers and acquisitions to stay ahead of the game.
In January 2022, YesStyle.com, a prominent e-commerce platform for beauty, fashion, and lifestyle items owned by YesAsia Holdings Ltd., selected Oracle Fusion Cloud Customer Experience (CX) to enhance customer loyalty with an optimized digital experience through versatile and dependable AI-driven technological solutions.
In September 2022, AsiaTop Loyalty, a top loyalty rewards solution firm in Hong Kong and the Greater Bay Area, announced a quick market development strategy across Asia Pacific, utilizing Web 3.0 and Metaverse, after its USD 10 million investment round.
Additional Benefits:
The market estimate (ME) sheet in Excel format
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