The India loyalty program market is estimated to top nearly US$ 3,363.4 Million in 2023 and is projected to reach US$ 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) | US$ 3,363.4 Million |
| Projected India Loyalty Program Market Size (2033) | US$ 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).
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 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.
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 |
Principal Consultant
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 | US$ 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 US$ 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 | India Loyalty Program Market
1.1. India Market Outlook
1.2. Summary of Key Findings
1.3. Summary of Key Statistics
1.4. FMI Analysis and Recommendations
2. Market Overview
2.1. Market Taxonomy
2.2. Market Definition
3. Why does it Matter?
3.1. Extending Relationship with Brands- Customer Retention
3.2. Marketing Strategy Design to Incentivize Future Purchase
3.3. A Loyalty Program Will Reduce Marketing Costs
3.4. Rewards Customers Through- Point System, Membership Card, and Others
3.5. Others
4. Features/Benefits Associated with the Loyalty Program
4.1. Better Customer Retention
4.2. More Customer Referrals
4.3. Build Brand Advocacy & Empower Your Channel Partners
4.4. Surges the Billing Value of Distributors and Suppliers
4.5. Makes Stakeholders Recognize The Brand When Think of Buying A New Product
4.6. Makes Suppliers & Distributors Your Brand Advocates To Generate More Sales
4.7. Assigns Targets To The Sales Team and Rewards Them With Points & Offers
4.8. Cost-Efficacy
4.9. User-Generated Content and Reviews
5. Strategies to Create Effectively
5.1. Select the qualified channel partner
5.2. Estimate the need for training
5.3. Set goals and frame responsibilities
5.4. Wisely choose the right platform
5.5. Regular communication with the partners
6. Industry - Experts Key Insights
6.1. Which industry does your company fall under?
6.2. Please select from the below options how many channel partners you are dealing with. (Including Dealers & Retailers)
6.3. Who are your end users for loyalty programs/sales schemes? (*Please rate the following categories on a scale of 1 to 5, with 1= Least Preferred and 5= Most Preferred)
6.4. Are you offering any kind of sales schemes to your channel partners?
6.4.1. If yes, what is the duration of your sales schemes?
6.4.2. Which type of sales schemes are you offering?
6.5. Are you offering any kind of loyalty programs to your channel partners?
6.5.1. If yes, what is the duration of your programs?
6.5.2. Which of the following loyalty programs does your company offer?
6.5.2.1. If point-based, which type of privileges does your company offer?
6.5.2.2. If pre-decided, which type of privileges does your company offer?
6.6. How much you are investing in your loyalty programs for channel partners?
6.7. How many channel partners are you offering loyalty programs to?
6.8. How are your dealers/channel partners acquiring points?
6.9. Does your company use any loyalty program tool/software?
6.9.1. If yes, which mode of tool/software are you using?
6.9.2. If you are using an online tool, which type of tool/software it is?
6.9.3. In Which features are most important to you when choosing a tool/software/user interface? (*You can select multiple options from the below categories)
6.9.4. What type of reports do you expect from a loyalty program tool/software?
6.10. What are the challenges you encounter in your loyalty programs? (*You can select multiple options from the below categories)
6.11. Are you looking for any loyalty program management agency offering robust and tech-based loyalty program solutions?
6.12. What do you expect from a robust loyalty program?
6.13. What are the most important purposes for you while offering a loyalty program? (*Please select the top 3 options from the below categories)
6.14. Which of the following modes of communication do you prefer to interact with your channel partners? (*You can select multiple options from the below categories)
6.15. Which of the below-mentioned categories is the most preferred way for collecting feedback from channel partners?
6.16. Please select the top five privileges most preferred by your channel partners.
6.17. Have you created any tiers for your dealers?
6.17.1. If yes, how many tiers?
6.17.2. If yes, how have you made the tiers?
6.18. What is your basis for enrolment for channel partner loyalty programs?
7. Market Demand (in Value or Size in US$ Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033
7.1. Historical Market Value (US$ Million) Analysis, 2016 to 2021
7.2. Current and Future Market Value (US$ Million) Projections, 2023 to 2033
7.2.1. Y-o-Y Growth Trend Analysis
7.2.2. Absolute $ Opportunity Analysis
8. Key Market Trends & Opportunities
8.1. Loyalty Program Providers More Interested in At-A-Glance Views
8.2. Survey Inclusion an Add-On to Understand Channel Partners’ Reaction & Views on Loyalty Program
8.3. Globalization Impacting Lifestyles
8.4. Introducing Loyalty Programs Considering the Tier-Wise Classification of Channel Partners
8.5. Necessary App Features Highly Preferred
8.6. Query Manager: Another Necessary Feature
8.7. Incorporation of Geo-Notifications Promoting Higher Efficiency
8.8. Incorporation of Testimonials
8.9. Endorsements
8.10. Addressing Complaints, Accepting Solutions
9. Fast Facts - Loyalty Programs in India
9.1. Brand is Increasingly at the Core of Experience
9.2. Type of Implemented by Sector
9.2.1. Electronics and Electrical
9.2.2. Automobile Manufacturing
9.2.3. Tyre
9.2.4. Cement
9.2.5. Paint
9.2.6. Watches
9.2.7. Laptops
9.2.8. Mobile Phones
9.2.9. Luxury Brands
9.2.10. Others
9.3. Loyalty Programs Continue to Heavily Influence Member advocacy, retention, and spend - The Impact
9.4. Top Drivers for Member Satisfaction
9.4.1. Program Meets Needs
9.4.2. Enjoy Participating In the Program
9.4.3. Program Rewards/Benefits Appealing
9.4.4. Program Consistent With Brand Expectations
9.4.5. Program Makes Brand Experience Better
9.5. Forecast Factors- Relevance & Impact
9.5.1. Top Companies Historical Growth
9.5.2. Number of Business/Companies Outlook
9.5.3. Total Revenue By Industry Outlook
9.5.4. Retail Industry Outlook
9.5.5. GDP Growth Outlook
9.5.6. Others
9.6. PESTLE Analysis of Market
9.7. Porter’s Five Forces Analysis of the Market
9.8. Market Dynamics
9.8.1. Drivers
9.8.2. Restraints
9.8.3. Opportunity Analysis
10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Program Type
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ Million) Analysis By Program Type, 2018 to 2022
10.3. Current and Future Market Size (US$ Million) Analysis and Forecast By Type, 2023 to 2033
10.3.1. Points Programs
10.3.2. Cash Back
10.3.3. Punch Card Programs
10.3.4. Tiered
10.3.5. Coalition
10.3.6. Premium
10.3.7. Hybrid
10.4. Market Attractiveness Analysis By Program Type
11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by End User
11.1. Introduction / Key Findings
11.2. Historical Market Size (US$ Million) Analysis By End User, 2018 to 2022
11.3. Current and Future Market Size (US$ Million) Analysis and Forecast By End User, 2023 to 2033
11.3.1. B2B (Business-to-Business)
11.3.1.1. Small and Medium Enterprises
11.3.1.2. Large Enterprises
11.3.2. B2C (Business-to-Customers)
11.4. Market Attractiveness Analysis By End User
12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Consumer Orientation
12.1. Introduction / Key Findings
12.2. Historical Market Size (US$ Million) Analysis By Consumer Orientation, 2018 to 2022
12.3. Current and Future Market Size (US$ Million) Analysis and Forecast By Consumer Orientation, 2023 to 2033
12.3.1. Employee Rewards
12.3.2. Sales Incentive
12.3.3. Channel Incentives
12.3.4. Customer Rewards
12.4. Market Attractiveness Analysis By Consumer Orientation
13. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Vertical
13.1. Introduction / Key Findings
13.2. Historical Market Size (US$ Million) Analysis By Vertical, 2018 to 2022
13.3. Current and Future Market Size (US$ Million) Analysis and Forecast By Vertical, 2023 to 2033
13.3.1. Automobiles
13.3.2. Cements
13.3.3. Electronics & Electricals
13.3.4. Laptops
13.3.5. Luxury Brands
13.3.6. Mobile Phones
13.3.7. Paints
13.3.8. Tyres
13.3.9. Watches
13.3.10. Others
13.4. Market Attractiveness Analysis By Vertical
14. Potential of B2B Customer
14.1. Benefits of B2B Loyalty Programs
14.1.1. Growing top-line revenue and improving profit margins
14.1.2. Reducing costs and raising customer satisfaction
14.1.3. Promoting digital engagement and generating valuable customer data
14.2. Actions for Making B2B Loyalty Work
14.2.1. Dig deeper to understand your business buyers
14.2.2. Identify and encourage optimal customer behaviors
14.2.3. Design your program to be simple
14.2.4. Create the best possible customer experience
14.2.5. Lead with digital
15. Competition Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Competition Deep Dive
15.3.1. One Loyalty
15.3.2. Channelplay Limited
15.3.3. REWARDPORT
15.3.4. Evolve Brands
15.3.5. Slingloft
15.4. Industry-Wise Key Manufacturers in Different Industries
15.4.1. Automobile manufacturing (e-scooters, 2 and 4-wheelers)
15.4.1.1. Maruti Suzuki India Ltd
15.4.1.2. Hero MotoCorp Ltd.
15.4.1.3. Hero Electric
15.4.2. Cement
15.4.2.1. UltraTech Cement Ltd
15.4.2.2. Ambuja Cement
15.4.3. Electronics and Electrical
15.4.3.1. Havells India Ltd
15.4.3.2. Bosch India
15.4.4. Laptop
15.4.4.1. Hewlett-Packard
15.4.4.2. Lenovo
15.4.5. Luxury Brands
15.4.5.1. Jaguar
15.4.5.2. Gucci
15.4.6. Mobile Phones
15.4.6.1. Xiaomi
15.4.6.2. Samsung
15.4.7. Paint
15.4.7.1. Asian Paints
15.4.7.2. Berge
15.4.8. Tyre
15.4.8.1. MRF
15.4.8.2. Apollo
15.4.9. Watches
15.4.9.1. Titan
15.4.9.2. Casio
16. Assumptions and Acronyms Used
17. Research Methodology
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India Loyalty Program Market
