The India loyalty program market is estimated to top nearly USD 3,363.4 Million in 2023 and is projected to reach USD 14,502.6 Million by 2033, at a CAGR of ~15.7% from 2023 to 2033. The Indian loyalty program market holds approximately ~4%-8% of the global loyalty program market.
| Attribute | Details |
|---|---|
| Estimated India Loyalty Program Market Size (2023) | USD 3,363.4 Million |
| Projected India Loyalty Program Market Size (2033) | USD 14,502.6 Million |
| Value CAGR (2023 to 2033) | 15.7% |
| India Loyalty Program Market Top Players Share in 2022 | ~1%-5% |
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Loyalty programs are one of the marketing strategies that many retailers and companies have adopted to attract and retain their customers and channel partners by giving them additional benefits and encouraging them to spend more money.
Loyalty programs offer rewards, points, discounts, and other special incentives designed to increase revenue and inspire customer loyalty. This helps companies develop a strong repeat consumer base.
The loyalty program market is a superset of the loyalty management market, which includes software and services (professional services and managed services).
Organizations Looking to Use AI to Offer Personalized Rewards to Their Channel Partners
Industry experts today largely believe that many of the industry sectors are steadily marching towards personalization. In the past few years, using AI (artificial intelligence) to create a more personalized experience has already become a new norm. Creating user profiles has helped the players gain information to personalize incentives that are likely to be considered more effective than generalized incentives.
Another way of using AI (artificial intelligence) is to incentivize channel partners by logging in their purchase records. This feature can help the organization to completely analyze the purchase behavior of channel partners in detail at different levels or tiers.
Organizations Looking for a Solution that Caters to the Needs of Different Channel Partners
Organizations are looking for solutions that are capable of handling multi-channel programs. For instance, in the case of tyre manufacturers, the players are looking to obtain a solution that is able to manage multiple channel programs, one for vehicle manufacturers and others for retail partners serving the post-sale replacement requirements. Thus, manufacturers are more inclined towards solutions that will help them better track their interaction differently with different channel partners.
Ability to Provide Omni-Channel Interaction
Implementing a successful loyalty program is largely driven by the objective of delivering an omnichannel promise. The channel partners interact with numerous channels to browse inventory and seek advice. Thus, the organizations offering loyalty programs are currently in search of a program that can offer them an opportunity that enables omnichannel interaction at every touchpoint.
Such loyalty programs further promote engagement, thus, enhancing relationships within the business channel partner networks. Omni-channel loyalty facilitates promoting cross-channel loyalty through real-time campaigns.
| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 15.7% |
| Jul to Dec (H2), 2021 (A) | 15.2% |
| Jan to Jun (H1), 2022 Projected (P) | 15.8% |
| Jan to Jun (H1), 2022 Outlook (O) | 17.4% |
| Jul to Dec (H2), 2022 Outlook (O) | 16.9% |
| Jul to Dec (H2), 2022 Projected (P) | 15.4% |
| Jan to Jun (H1), 2023 Projected (P) | 15.7% |
| BPS Change: H1, 2022 (O) to H1, 2022 (P) | (+) 158 |
| BPS Change: H1, 2022 (O) to H1, 2021 (A) | (+) 174 |
| BPS Change: H2, 2022 (O) to H2, 2022 (P) | (+) 154 |
| BPS Change: H2, 2022 (O) to H2, 2021 (P) | (-) 169 |
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Point-based and pre-decided Loyalty Programs are Mostly Preferred in the India Loyalty Market
In terms of program type, a combination of point-based and pre-decided loyalty programs account for a notable share of 65.5% in the Indian loyalty program market. However, point-based loyalty programs hold a significant share in 2022, as points are easy to earn and easy to redeem. Channels can redeem points for credit toward their next purchase, discounted services, or giveaways.
Sales Incentives are the Most Significant Category in the Market
In terms of consumer orientation, sales incentives highly dominate the market owing to an increase in profits, improve sales success, and allow for sustainable growth. A well-designed and well-executed loyalty program can help in retaining existing customers, attract new customers, reduce turnover, and drive profits.
However, employee rewards and channel incentives have significant market shares of approximately 17.7% and 10.2%, respectively.
B2B Large Enterprises Mostly Preferred in the Target Market
In the case of end-user analysis, in B2B large enterprises segment account for a notable share as loyalty marketing has been around for decades and the advantages (growing top-line revenue, improving profit margins, and increasing purchase frequency and spending, etc.) are well-known. It is not surprising to find out that nearly every large enterprise has some sort of loyalty program.
However, a significant number of B2B small and medium enterprises should have some patience before entering into the loyalty program.
The prominent players in the Indian loyalty program industry are adopting various strategies to survive the high-level competition. The biggest opportunity to compete amongst the other players is to add the most important feature which is in missing in most of the loyalty program management tools/software i.e., CDP (Consumer Data Platforms) pertaining to its high development and management cost
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| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million/Billion for Value |
| Key Region Covered | South Asia |
| Key Country Covered | India |
| Key Segments Covered | Program Type, Consumer Orientation, End-User, Vertical |
| Key Companies Profiled | One Loyalty; ChannelPlay Ltd.; REWARDPORT; Evolve Brands; Slingloft; Others (As Per Request); Automobile(Maruti Suzuki India Ltd, Hero MotoCorp Ltd., Hero Electric); Cement(UltraTech Cement Ltd, Ambuja Cement); Electronics & Electricals(Havells India Ltd., Bosch India); Laptop(Hewlett Packard, Lenovo); Luxury Brands(Jaguar, GUCCI); Mobile Phones(Xiaomi, Samsung); Paint(Asian Paints, Berge); Tyre(MRF, Apollo); Watches(Titan, Casio) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The United States leads with a record revenue generation of 230.7 million in 2022.
The value of the total market in 2023 could sum up to USD 3,363.4 million.
Adoption of India loyalty programs is estimated to expand at an average of 15.7% CAGR till 2033.
Point-based and pre-decided programs generate 65.5% of the total market.
The top three players are One Loyalty, ChannelPlay, and REWARDPORT.
1. Executive Summary 2. Market Overview 3. Why does it Matter 4. Features/Benefits Associated with the Loyalty Program 5. Strategies to Create Effectively 6. Industry - Experts Key Insights 7. Market Demand (in Value or Size in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Key Market Trends & Opportunities 9. Fast Facts - Loyalty Programs in India 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Program Type 10.1. Points Programs 10.2. Cash Back 10.3. Punch Card Programs 10.4. Tiered 10.5. Coalition 10.6. Premium 10.7. Hybrid 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by End User 11.1. B2B (Business-to-Business) 11.1.1. Small and Medium Enterprises 11.1.2. Large Enterprises 11.2. B2C (Business-to-Customers) 12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Consumer Orientation 12.1. Employee Rewards 12.2. Sales Incentive 12.3. Channel Incentives 12.4. Customer Rewards 13. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Vertical 13.1. Automobiles 13.2. Cements 13.3. Electronics & Electricals 13.4. Laptops 13.5. Luxury Brands 13.6. Mobile Phones 13.7. Paints 13.8. Tyres 13.9. Watches 13.10. Others 14. Potential of B2B Customer 15. Competition Analysis 15.1. One Loyalty 15.2. Channelplay Limited 15.3. REWARDPORT 15.4. Evolve Brands 15.5. Slingloft 16. Assumptions and Acronyms Used 17. Research Methodology
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India Loyalty Program Market
