Dublin, Aug. 07, 2023 (GLOBE NEWSWIRE) -- The "United Kingdom 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 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The loyalty market in the United Kingdom is witnessing a significant surge, with an expected annual growth rate of 11.7%, reaching a value of US$8.189 billion in 2023.
Over the past few years, the loyalty market in the UK has demonstrated steady growth, recording a CAGR of 12.4% from 2018 to 2022. The trend is set to continue during the forecast period, with an estimated CAGR of 11.1% from 2023 to 2027, projecting the loyalty market's expansion from US$7.330 billion in 2022 to US$12.492 billion by 2027.
As the UK faces economic downturn and rising inflation, both brands and consumers are turning to loyalty programs to alleviate the cost-of-living crisis. Loyalty programs are becoming crucial for consumers to enhance their everyday spending in challenging financial times.
Concurrently, brands are leveraging loyalty and reward programs to attract shoppers and stimulate sales and revenue growth in 2023. While more retailers join the loyalty bandwagon, some are also making adjustments to the value of their reward points due to inflationary pressures in the UK.
These changes are expected to boost retailers' margins and positively impact their bottom line amid the current macroeconomic environment.
The cost-of-living crisis is driving the adoption of loyalty and rewards programs among brits in 2023
With inflation having a severe impact on consumers' disposable income, a growing number of consumers in the United Kingdom are turning to loyalty and rewards programs to boost their everyday spending.
According to the publisher estimates, over 71% of consumers are relying on loyalty programs to get more value for their everyday spending, amid the cost-of-living crisis. Furthermore, consumers are willing to spend more with brands that have a loyalty program.
As the cost-of-living crisis continues to have an impact on household spending, the adoption of loyalty and reward programs is expected to further grow among consumers in the United Kingdom in 2023. This will aid the growth of the loyalty and reward programs industry from the short to medium-term perspective.
British retailers are cutting the value of their reward points due to growing inflationary pressures
Although retailers are leveraging loyalty programs to drive customer retention and repeat purchases, the growing inflationary pressure has also forced these retailers to re-evaluate their reward programs. Consequently, several retailers have cut down the value of their reward points to improve margins.
In March 2023, Tesco, one of the leading supermarket chains in the United Kingdom, revealed that the firm will cut down the exchange rate of consumers' loyalty vouchers with reward partners by a third, starting June 2023. The changes, which will impact Tesco Clubcard members, are aimed at improving the profit margins for the firm amid the economic downturn.
Boots, one of the leading pharmacy chains in the United Kingdom, also announced similar changes to its loyalty and rewards scheme in March 2023. The firm reduced the value of its reward points by 25%. The changes are slated to come into effect in May 2023.
While these measures might have a positive impact on retailer's margins, pulling back on reward schemes can also have severe consequences, as consumers are seeking more value from their reward programs.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 117 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value (USD) in 2023 | $8.2 Billion |
| Forecasted Market Value (USD) by 2027 | $12.5 Billion |
| Compound Annual Growth Rate | 11.1% |
| Regions Covered | United Kingdom |
Scope
United Kingdom Retail Sector Spend Value Trend Analysis
- Ecommerce Spend
- POS Spend
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2018-2027
Value Accumulated and Value Redemption Rate of Loyalty programs in United Kingdom
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2018-2027
- Loyalty Schemes
- Loyalty Platforms
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2018-2027
- Points programs
- Tier-based programs
- Mission-driven programs
- Spend-based programs
- Gaming programs
- Free perks programs
- Subscription programs
- Community programs
- Refer a friend program
- Paid programs
- Cashback programs
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2018-2027
- In-Store
- Online
- Mobile
United Kingdom Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
- Seller Driven
- Payment Instrument
- Others
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2018-2027
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by online, 2018-2027
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store, 2018-2027
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App, 2018-2027
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2018-2027
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
- Other
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2018-2027
- Card Based Access
- Digital Access
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2018-2027
- B2C Consumers
- B2B Consumers
United Kingdom Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
- Free
- Free + Premium
- Premium
United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Software
- Analytics and AI Driven
- Normal CRM
United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
- In House
- Third Party Vendor
United Kingdom Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
- Cloud
- On-Premise
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2018-2027
- Software
- Services
United Kingdom Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2018-2027
- Custom Built Platform
- Off the Shelf Platform
United Kingdom Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour, 2022
- By Age Group
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/70al8k
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