DUBLIN--(BUSINESS WIRE)--The "United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook 2023" report has been added to ResearchAndMarkets.com's offering.
The report reveals the robust growth of the loyalty market in the United States, expected to surge by 12.3% annually, reaching over US$27.5 billion in 2023.
The loyalty market in the United States has demonstrated remarkable progress, recording a CAGR of 12.8% during 2018-2022. This upward trend is anticipated to persist, with a projected CAGR of 11.7% during 2023-2027. By 2027, the loyalty market is expected to reach over US$42.8 billion, compared to US$24.5 billion in 2022.
In response to the current macroeconomic environment and rising inflation, consumers are actively seeking value-offering loyalty and rewards programs. Cost-conscious customers are turning to loyalty programs across various industries to maximize the value of their spending. This demand for loyalty programs is projected to continue in 2023, as product prices rise across the United States.
Innovation and Web3 Adoption Drive Industry Growth
2023 is expected to witness continued increased innovation in the loyalty market, with brands leveraging non-fungible tokens (NFTs) to power their loyalty and reward programs. The growing Web3 ecosystem is opening up new avenues for customer loyalty, and businesses are set to capitalize on this technology for short to medium-term growth of their loyalty programs.
Loyalty Programs as a Catalyst for Retail Growth
In the face of inflation and reduced discretionary spending, retailers are harnessing loyalty programs as a strategic tool to drive consumer stickiness, sales, and revenue growth. Grocery retailers, in particular, have achieved considerable success in fostering repeat purchases through loyalty programs.
In January 2023, Albertsons Companies, a leading grocery giant acquired by Kroger, reported a remarkable 33% YoY increase in digital sales in Q4 2022. During the same period, loyalty program membership rose by 16% to 33 million. The surge in digital sales was attributed to the success of Albertsons Companies' loyalty program, which helped drive repeat purchases in a competitive online grocery landscape.
The recent launch of True Fam, a loyalty program by True Religion, is a testament to the trend of retailers launching innovative loyalty programs to deliver more value to their customers amid inflation and reduced discretionary spending.
Starbucks Revamps Rewards for Higher Profits
Brands are revamping their loyalty and rewards programs to not only attract new members but also enhance profit margins. Starbucks, a renowned coffee chain, made changes to its rewards program in February 2023, requiring members to earn more points to redeem freebies. By encouraging customers to spend more to earn rewards, Starbucks aims to boost profits while leveraging its successful loyalty program that accounted for 55% of total sales in Q4 2022.
Rising Capital for Loyalty Providers
Loyalty program providers are raising capital through venture capital and private equity funding to drive innovation and growth in the United States market. For example, WEEDAR, a loyalty and distribution ecosystem for cannabis brands, secured US$1.5 million in seed funding in January 2023 to improve existing features and scale its operations.
Data-Centric Analysis of the Loyalty Market
The "United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - Q1 2023 Update" provides comprehensive data-centric analysis of the loyalty market opportunities and risks across various industry categories. With over 50 key performance indicators (KPIs) at the country level, the report offers a comprehensive understanding of loyalty market dynamics, size, forecast, and market share statistics.
Key Report Highlights
- Understand the United States loyalty spend market, its size, growth drivers, and trends.
- Benchmark your business against competitors and identify strengths and weaknesses.
- Stay ahead of the competition by staying updated on the latest trends in the loyalty spend market.
- Develop an effective and successful loyalty program with comprehensive factors to consider.
For more information about this report visit https://www.researchandmarkets.com/r/jgfx1b
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