Introduction: A majority of companies today focus on a customer centricapproach in doing business. This leads for a lot of companies to offer multipleloyalty programs for customer retention, cross selling and to increase thecustomer penetration. It therefore becomes important to manage the customerrelations and the Loyalty management. An improvement in customer loyalty ultimately leads toincrease in sales and revenue. Enterprises extend various loyalty programs suchas reward points, discounts, special product offers and gift vouchers, with standardrules across different locations to provide similar services to all customers. Softwaresolution providers offer loyalty management software to manage all theseprograms with less amount of human intervention.
Most of the enterprises areimplementing such software based tools to maintain high level of customersatisfaction, by providing customized loyalty programs such as lotteries,special auctions, coupons or benefits through one platform.MarketDynamics: Increasingusage of mobile technologies, and increased focus on customer experiencemanagement, as well as usage of digital cards drive the Loyalty Managementmarket. These techniques engage the customers, keeps them interested in theproduct, and the associated services and benefits, and ensures that they keepcoming back to the same company for their requirements.
The majorchallenges for loyalty management market is to successfully develop easy tounderstand and use loyalty programs that create a strong bond between a customerand the brand as well as maintaining them and keeping them updated to the needsof the customers. These two challenges hinder the demand for loyalty managementsolutions in the market.Market Segmentation: Segmentation on the basis of size of enterprise(number of employees) :· Large-scaleEnterprises· Medium-scaleEnterprises· Small-scaleEnterprises Segmentationon the basis of User Handling Capacity:· Limited· ExtendedThis could be in respect of limited stores access, ornon-integrated systems between branches, implementation of certain programmesonly in certain branches (of franchise, or geographic location, etc.) Segmentation on the basis of industry:· Retail· Healthcare· Apparel· Telecom· Media& Entertainment· Hospitality· Education· Banking,Financial Services, and Insurance (BFSI)· Others Segmentation on the basis of Solution· ChannelLoyalty· CustomerLoyalty· EmployeeRetention Segmentation on the basis of Deployment:· Cloud· On-Premises Key Players: · Oracle Corporation· International Business MachinesCorporation· Bond Brand Loyalty Inc.· Epsilon· Fidelity Information Services(FIS)· IBM Corporation· ICF International, Inc.· Kobie Marketing, Inc. · Maritz Holdings Inc.