Dublin, May 17, 2022 (GLOBE NEWSWIRE) -- The "United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Loyalty Programs Market in United States is expected to grow by 12.4% on annual basis to reach US$ 35489.5 million in 2022
In value terms, the Loyalty Programs Market in United States has recorded a CAGR of 12.6% during 2017-2021. The Loyalty Programs Market in United States will continue to grow over the forecast period and is expected to record a CAGR of 12.0% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 31587.8 million in 2021 to reach US$ 55918.4 million by 2026.
For several years, brands across the United States have invested in developing and launching loyalty programs to attract and retain customers. From traditional earn and burn points programs to those offering exclusive access to services, loyalty programs have allowed brands in the country to deepen their relationships with customers while encouraging them to keep using products and services offered by the brand.
However, the global pandemic outbreak has brought in a lot of changes in consumer behavior, especially in the way how customers interact with brands. Due to these changes in consumer behavior, brands have had to completely rethink their loyalty programs.
Notably, some of the industries, including F&B and retail, have benefited from the shift to digital as more consumers order food and shop online. However, other industries, including hotels, airlines, and events, have found it difficult to retain customers in the midst of pandemic-led restrictions and, therefore, had to redesign their loyalty programs.
Over the last three to four years, brands have launched new and innovative loyalty programs, whereas others have revamped the existing ones to differentiate themselves in the increasingly competitive landscape. As the competition to grab consumer attention continues to rise, the publisher expects more brands and retailers across different industry verticals to increasingly turn to loyalty programs in the United States from the short to medium-term perspective.
With brands and businesses across different industry verticals offering loyalty programs to encourage more shoppers to continue buying products and services, the competition in the market has surged significantly over the last three to four years in the United States.
Notably, many of the major brands in the F&B sector are resorting to the use of loyalty and rewards programs to drive incremental sales and revenues at their stores across the country. Some of the major brands from the F&B sector that are leading the loyalty industry growth include Chipotle, Starbucks, McDonald's, Burger King, and many more.
In the travel sector, some of the leading names driving the industry growth include AAdvantage from American Airlines and Delta Airlines. Whereas, Hilton Hotel and Radisson are some of the key players in the hospitality industry that are driving the growth of the loyalty and rewards program market in the United States.
Moreover, global loyalty program providers, such as Capillary Technology, are also looking to expand their market share in the United States through mergers and acquisitions deals. This is expected to further promote innovation in the loyalty and rewards program industry from the short to medium-term perspective in the country.
Banking institutions are launching enhanced rewards and loyalty programs in the United States
As the loyalty program landscape continues to evolve in the United States, banking institutions are also restructuring their loyalty and rewards programs to offer a more enhanced experience for members in the United States.
In December 2021, Bank of America announced that the firm is launching an enhanced loyalty and rewards program, which has been specifically designed to offer additional perks and personalized experiences based on the breadth of a client's relationship with the bank.
Notably, the Preferred Rewards program, which has over 9 million members and US$1.4 trillion in deposits and investment assets, now features two new tiers for high net worth clients, in addition to the previous three tiers. These include Diamond and Diamond Honors tiers for clients with US$1 million and more and US$10 million and more in assets with the banking institution.
The bank is also expanding its loyalty and rewards program with the launch of Partner Rewards, a unique loyalty program that is designed to offer credit and debit cardholders increased choices when it comes to earning exclusive discounts and rewards from merchants.
The publisher expects more banking institutions to make enhancements to their loyalty and rewards programs as the industry landscape continues to evolve from the short to medium-term perspective in the United States.
Fintech firms are launching unique gamified reward programs on top of a neobank in the United States
With the growing demand for innovative mobile banking solutions, the popularity of neo-banking solutions has surged significantly over the last three to four years. In the midst of this growing competition, Fintech firms are now looking to differentiate their product by including a gamified rewards program to attract more users in the United States.
In March 2022, Flyp Financial, the United States-based Fintech firm, announced that the firm had launched a mobile banking app, Flyp, which also includes a unique gamified rewards program. Notably, the program offers users rewards on each of their purchases.
As the competition in the mobile banking area continues to intensify over the next four to eight quarters, the publisher expects more Fintech firms and neo-banking players to differentiate their product offering by launching a loyalty and rewards program for their users in the United States.
Ride-hailing firms launching rewards programs for their drivers in the United States
The increasing rate of inflation is having an impact on all different industries globally. It has even resulted in higher gas prices which are affecting the drivers of ride-hailing firms. Consequently, to ease the burden on drivers, ride-hailing firms are now launching rewards programs to combat the rising gas prices in the United States.
In March 2022, Lyft, one of the leading ride-hailing firms, announced that it had launched a new cashback reward on fuel purchases for drivers, with the aim to combat the rising gas prices. Notably, the cashback rewards program is applicable on all fuel purchases for US drivers using a Lyft Direct debit card, which is powered by Payfare. Under the program, drivers are eligible to receive 4% to 5% cashback rewards on every gas purchase until June 30, 2022.
As inflation fear continues to mount and affect consumers across industries, the publisher expects more firms and brands to launch rewards programs for their customers over the next four to six quarters.
United States Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
United States Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
United States Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
Point-based Loyalty Program
Tiered Loyalty Program
Subscription Loyalty Program
Perks Loyalty Program
Coalition Loyalty Program
Hybrid Loyalty Program
United States Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
United States Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
Healthcare & Wellness
Restaurants & Food Delivery
Travel & Hospitality (Cabs, Hotels, Airlines)
Media & Entertainment
United States Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
Clothing, Footwear & Accessories
Toy & Hobby Shops
Supermarket and Convenience Store
United States Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
Card Based Access
United States Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
United States Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
United States Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
Custom Built Platform
Off the Shelf Platform
United States Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021
By Age Group
By Income Level
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