Membership in digital loyalty programs are expected to rise by 30% to reach 48 billion by 2023, according to a new report from Juniper Research.
The projected digital loyalty membership compares with 37 billion currently. The study shows that retailers should embrace digital loyalty as a way to grow their online and offline sales strategies as part of a comprehensive omnichannel strategy.
“Businesses are continually seeking to set themselves apart from their competitors and drive consumer purchase,” Susannah Hampton, analyst for Juniper Research, told Mobile Payments Today via email. “Digitizing loyalty programs enables omnichannel loyalty program interaction, it enables businesses to collect better data from customers and to leverage this data to target and personalize rewards.”
She pointed out that many consumers are part of loyalty programs that go unused, and businesses can use data generated from these programs to drive consumer interest in making a purchase.
According to the report, the total value of redeemed mobile coupons will reach $67.6 billion by 2023, compared with $51.6 billion in 2020, driven by increased use of QR codes and mobile coupons. The report shows that QR code redemption will increase in the Chinese market, while also growing by three- to four-fold in the Indian and African mobile payments markets.
The global credit card rewards markets are expected to reach $68 billion by 2023. The U.S. is expected to remain the largest market for corporate card rewards, according to the report.
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