Evolving Consumer Trends are Aiding the Loyalty-Reward Market Development
NEW YORK, July 13, 2018 /PRNewswire/ —
According to Allied Market Research, the Global Loyalty Management market was valued at USD 1.93 Billion in 2016 and is expected to reach USD 6.95 Billion by 2023, while growing at a CAGR of 20.8% from 2017 to 2023. The drivers for the market include the increasing usage of mobile devices, increasing number of cardholders and the growing adoption of programs. Many companies have or are beginning to adopt a form of loyalty reward programs for their consumers. These forms of promotions retain existing customers, while also collecting data and insights to attract new potential customers. Other factors include the changing user demographics, increased spending on loyalty programs and rapidly growing applications of big data and machine learning. Snipp Interactive Inc. (OTC: SNIPF), Points International Ltd. (NASDAQ: PCOM), Marriott International Inc. (NASDAQ: MAR), Starbucks Corporation (NASDAQ: SBUX), The Vitamin Shoppe (NYSE: VSI)
The market is always changing and expanding in order to attract different demographics, and as such, customers are always looking for different forms of reward programs. Companies spent USD 2 Billion in the U.S. alone on loyalty rewards programs. These companies are rewarding their consumers for using their services or purchasing their products, giving them a competitive advantage over competitors who don’t offer anything. “By instituting a loyalty program, you not only improve customer appreciation of your business, but you also increase the chances that existing clients will share this joy with those close to them,” says Steve Olenski, a Senior Creative Content Strategist at Oracle Responsys, according to Marketing Land. “This allows you to hone in on specific rewards that are most appreciated. Using this information, you can also attach the most sought-after rewards to specific products that you are most interested in sharing with your clients.”
Snipp Interactive Inc. (OTCQB: SNIPF) is also listed on the TSX Venture Exchange under the ticker (TSX-V: SPN). Earlier this week, the Company announced that it, “has received a three-year geographic market expansion agreement from one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.
Snipp has been working with and successfully run programs for two of the customers’ leading brands since 2016, starting with a launch of two brands in the United States, followed by an expansion into Canada. Both country programs have been extended since the initial launch. The global deal value currently stands at USD 550,000.
This new agreement covers the further geographic extension of a brand program into the European Union. Under this agreement, Snipp will roll out the program where consumers earn loyalty points from their purchases made at any retailer, simply by sharing their receipt. Snipp’s receipt processing technology is integrated into the Brand’s websites via widget and registered consumers can upload their purchase receipt online or via e-mail. The customer is working with Snipp to meet the needs of their consumers via the Company’s best-in-class technology and also for Snipp’s ability to provide actionable data from the receipts collected. The data allows them a deeper understanding of consumer purchasing habits and preferences.”
“We are very excited to have signed this new agreement marking another expansion of a program across geographies and to receive this strong vote of confidence from an existing client,” commented Atul Sabharwal, Chief Executive Officer and Founder of Snipp. “Snipp has been working with this premier beauty brand to truly support their global growth — helping them build meaningful consumer relationships and gather critical data that can be used for marketing and brand development. We look forward to working with more of our multinational clients as they recognize the global applicability of our platform to drive improvements in sales and consumer engagement.”
Points International Ltd. (NASDAQ: PCOM) provides loyalty e-commerce and technology solutions to the world’s top brands to power innovative services that drive increased loyalty program revenue and member engagement. The Company recently announced that it has expanded its partnership with Air Europa SUMA, the loyalty program of Air Europa, to leverage Points Travel services, the industry-leading white-label hotel platform for access to over 300,000 hotels at the click of a button. Through a single integration with Points’ Loyalty Commerce Platform, which powers Points Travel services, Air Europa SUMA’s members now have the ability to earn or redeem miles when booking on over 300,000 hotels across the globe. This significant program enhancement follows a successful partnership launch in 2017 with Points when Air Europa SUMA leveraged Points’ platform to offer its program members the ability to buy miles to redeem for flights with Air Europa or its partner airlines.
Marriott International Inc. (NASDAQ: MAR) operates and franchises hotels and licenses vacation ownership resorts all around the world. In April, the Company announced it will introduce one set of unified benefits across Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest (SPG) for its members in August 2018. This will create an incredibly rich hospitality loyalty program in which members will earn more points faster than under the prior programs, on average 20% more points for every dollar spent. For the first time, members will have access to book stays and earn or redeem points among 29 participating global brands comprising 6,500 hotels in 127 countries and territories. Beginning in August, members will be able to combine their separate Marriott Rewards, The Ritz-Carlton Rewards and SPG accounts into a single account spanning the entire loyalty portfolio.
Starbucks Corporation (NASDAQ: SBUX) and Chase announced the availability of the Starbucks Rewards™ Visa® Prepaid Card, the first prepaid or debit product where you can earn Stars outside of Starbucks on June 11, 2018. The second co-branded product introduced by the Companies this year, the Starbucks Rewards™ Visa® Prepaid Card is a unique financial solution for a growing population of customers looking for alternative tools for money management while earning Starbucks Rewards in all places Visa is accepted. Integrated directly into the Starbucks Rewards™ loyalty program, customers who use the Starbucks Rewards™ Visa® Prepaid Card will automatically receive Gold Status, earn Stars with spend and become eligible for Birthday Rewards, free food and beverage items from Starbucks, and more including exclusive perks and benefits already enjoyed by more than 14 Million members daily.
The Vitamin Shoppe (NYSE: VSI) is an omnichannel, specialty retailer and wellness lifestyle company based in Secaucus, New Jersey. Recently, the Company announced that it will introduce its new Healthy Awards® loyalty program to select customers nationwide. With more than six million members, the new Healthy Awards® program delivers on the Company’s commitment to help inspire and nourish customers every day by providing them with more rewards, more choices, more exclusives and more surprises to help them achieve their health and wellness goals. With the new Healthy Awards®, members now have more flexibility with points that don’t expire and the option to choose when to use their points. Additionally, the program will introduce a new tiered structure that will allow customers to earn rewards at an accelerated rate based on their annual spend.
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