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Insights on the Loyalty Programs Market in India to 2026 - Credit Card Providers are Partnering With Grocery Stores to Launch Loyalty Programs

·10-min read
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Dublin, June 02, 2022 (GLOBE NEWSWIRE) -- The "India 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.

According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in India is expected to grow by 13.2% on annual basis to reach US$ 2425.6 million in 2022. In value terms, the Loyalty Programs Market in India has recorded a CAGR of 13.3% during 2017-2021.

The Loyalty Programs Market in India will continue to grow over the forecast period and is expected to record a CAGR of 13.1% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 2141.9 million in 2021 to reach US$ 3963.6 million by 2026.

In India, loyalty and reward programs have been used as strategies by brands and organizations, especially in the hospitality, tourism, aviation, and retail sectors. Presently, with the global economic slowdown, businesses, in order to retain their customers and ensure profit generation, have adopted customer relationship management techniques with a more aggressive approach to sustain profitable long-term relationships. Therefore, loyalty programs are gaining popularity due to their ability to establish relationships with customers, drive product usage, repeat sales, and, most significantly, customer retention in India.

Notably, good loyalty programs also provide motivation psychologically and sociologically and also help in building the customer's trust and commitment towards the company. Apart from this, loyalty programs also facilitate data tracking, which acts as a catalyst for the establishment of the business model based on the efficacy of both the program as well as the data-driven knowledge model. This further helps the businesses to design customized strategies to cater to the unique needs of the customers based on the information on spending patterns.

Also, since loyal customers are not affected by price fluctuations, in particular, price inflation, companies do not need to spend heavily on promotion and advertising to cross-sell to their loyal customers as they are already assured about the brand of the offering. Therefore, planning a successful loyalty program is a long-term investment for the company.

The brands and organizations in India are always competing with one another to establish long-term relationships with customers, thereby fostering loyalty in them as a dedicated customer base. Notably, a loyal customer base facilitates generating revenue for the company as they turn out to be more profitable than new customers in the longer run. Consequently, the profitability of individual customers depicts an upward trajectory in due course of their relationship with the company.

Indian businesses should move away from traditional loyalty strategies

Customers' preferences have changed, and now they rely more on emotions to guide their decisions. Therefore, customers are now more hyper perceptive to brand messaging, tone, and purpose, and thus it has become necessary to establish an emotional connection. For achieving this emotional connection, four sub-strategies can be followed:

  • Empathize: Customers respond quickly to positive and inspiring content, including acknowledging the social, financial, and other realities of this pandemic. Therefore, the message can be sent to customers on health, empathy, courage, and humility to project reassurance and relevance.

  • Educate: Brands should put effort into informing people about the crisis, how to protect themselves during the crisis, and the progress being made to fight against it. This will help brands gather the trust of the customer against fake news also. For instance, BigBasket (a grocery e-commerce firm in India) reached their customers over social media daily with updates on lockdown scenarios and how are their delivery operations being impacted.

  • Engage: This can be done by brands by bringing people together by facilitating community connections and providing social support. Notably, high social engagement with customer support, instant replies, and conversational commerce was being rapidly adopted during this pandemic.

  • Evolve: Brands should be evolving their products and services, which can be done through the implementation of new schemes and new modes of usage. For instance, Bangalore-based Toyota Kirloskar Motor had made provisions to digitize the entire sales procedure where the customer will be able to take a virtual tour of the vehicle and many more.

Credit card providers are partnering with grocery stores to launch loyalty programs

With the shift in lifestyle preferences and increasing disposable income, consumers are looking for premium products and experiences. Therefore, premium cards are being launched, signifying a significant share in overall spending, which is an indication of consumers' increasing affinity toward the premium lifestyle. For instance,

  • In March 2022, SBI Card entered into a partnership with an Indian premium grocery store brand, Nature's Basket, to launch 'Nature's Basket SBI Card.'

  • Through this card (all variants), customers will earn up to 20 Reward Points on every Rs. 100 spent at Nature's Basket stores and up to 10 Reward Points on every Rs. 100 spent on dining, movies, and international travel.

  • Together with this, the cardholders will be able to enjoy benefits such as complimentary BookMyShow movie tickets, Taj gift vouchers, Nature's Basket welcome gift vouchers, and also access to higher tiers of the Nature's Basket loyalty program.

  • Additionally, Nature's Basket SBI Card Elite offers customers exclusive check-out counters at Nature's Basket stores and concierge assistance to address customers' requirements around flower delivery, gift delivery, and online doctor consultation.

The publisher expects that since India's premium consumer segment is showing strong potential for growth, the exclusive benefits for the SBI card loyal customers are likely to be retained by the company over the longer run.

Healthcare providers are partnering up with loyalty rewards platforms to strengthen their patient relationships

Since the digital revolution has made the consumers aware of the choices and resources, in order to improve the provider/patient relationship, there has been a rise in demand for virtual patient care. For instance,

  • In March 2022, Motherhood Hospitals, India's fastest growing women & childcare chain, partnered with Easyrewardz Healthcare CRM solution stack to launch their multi-hospital "Motherhood Delights" program.

  • Through its Loyalty & CRM solution for Healthcare, Easyrewardz enables the hospital to run an end-to-end program by managing the entire patient lifecycle starting from acquisition to engagement and retention of patients.

  • With Healthcare CRM taking center stage in healthcare, hospitals are looking at CRM with a different lens and opting for an advanced CRM solution to manage the entire patient lifecycle.

With the projected strong growth of the healthcare industry in the next two to three years, the publisher expects healthcare providers to invest significantly to strengthen their patient retention strategies through loyalty and rewards programs.

Reasons to buy

  • In-depth Understanding of Loyalty Programs Market Dynamics: Understand market opportunities and key trends along with forecast (2017-2026).

  • Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

  • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate loyalty strategy; assess market specific key trends, drivers, and risks in the industry.

Key Topics Covered:

1 About this Report

2 India Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

3 India Key Market Insight and Innovation
3.1 India Consumer Behavior
3.2 India Competitive Landscape and Growth Strategies
3.3 India Regulation Trends

4 India Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
4.1 India Loyalty Spend Share by Functional Domains, 2017-2026
4.2 India Loyalty Spend Value by Loyalty Schemes, 2017-2026
4.3 India Loyalty Spend Value by Loyalty Platforms, 2017-2026

5 India Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
5.1 India Loyalty Spend Share by Loyalty Program Type, 2017-2026
5.2 India Loyalty Spend Value by Point-based Loyalty Program, 2017-2026
5.3 India Loyalty Spend Value by Tiered Loyalty Program, 2017-2026
5.4 India Loyalty Spend Value by Subscription Loyalty Program, 2017-2026
5.5 India Loyalty Spend Value by Perks Loyalty Program, 2017-2026
5.6 India Loyalty Spend Value by Coalition Loyalty Program, 2017-2026
5.7 India Loyalty Spend Value by Hybrid Loyalty Program, 2017-2026

6 India Loyalty Spend Market Size and Future Growth Dynamics by Channel
6.1 India Loyalty Spend Share by Channel, 2017-2026
6.2 India Loyalty Spend Value by In-Store, 2017-2026
6.3 India Loyalty Spend Value by Online, 2017-2026
6.4 India Loyalty Spend Value by Mobile, 2017-2026

7 India Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
7.1 India Loyalty Spend Share by Key Sectors, 2017-2026
7.2 India Loyalty Spend Value in Retail, 2017-2026
7.3 India Loyalty Spend Value in Financial Services, 2017-2026
7.4 India Loyalty Spend Value in Healthcare & Wellness, 2017-2026
7.5 India Loyalty Spend Value in Restaurants & Food Delivery, 2017-2026
7.6 India Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines), 2017-2026
7.7 India Loyalty Spend Value in Telecoms, 2017-2026
7.8 India Loyalty Spend Value in Media & Entertainment, 2017-2026
7.9 India Loyalty Spend Value in Others, 2017-2026

8 India Loyalty Spend Market Size and Future Growth Dynamics by Retail
8.1 India Loyalty Spend Share by Retail Segments, 2017-2026
8.2 India Loyalty Spend Value by Diversified Retailers, 2017-2026
8.3 India Loyalty Spend Value by Department Stores, 2017-2026
8.4 India Loyalty Spend Value by Specialty Stores, 2017-2026
8.5 India Loyalty Spend Value by Clothing, Footwear & Accessories, 2017-2026
8.6 India Loyalty Spend Value by Toy & Hobby Shops, 2017-2026
8.7 India Loyalty Spend Value by Supermarket and Convenience Store, 2017-2026
8.8 India Loyalty Spend Value by Home Merchandise, 2017-2026
8.9 India Loyalty Spend Value by Other, 2017-2026

9 India Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
9.1 India Loyalty Spend Share by Accessibility, 2017-2026
9.2 India Loyalty Spend Value by Card Based Access, 2017-2026
9.3 India Loyalty Spend Value by Digital Access, 2017-2026

10 India Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
10.1 India Loyalty Spend Share by Consumer Type, 2017-2026
10.2 India Loyalty Spend Value by B2C Consumers, 2017-2026
10.3 India Loyalty Spend Value by B2B Consumers, 2017-2026

11 India Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
11.1 India Loyalty Spend Share by Loyalty Platform, 2017-2026
11.2 India Loyalty Spend Value by Software, 2017-2026
11.3 India Loyalty Spend Value by Services, 2017-2026

12 India Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms
12.1 India Loyalty Spend Share by Software Platforms, 2017-2026
12.2 India Loyalty Spend Value by Custom Built Platform, 2017-2026
12.3 India Loyalty Spend Value by Off the Shelf Platform, 2017-2026

13 India Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior
13.1 India Loyalty Spend Share by Age Group, 2021
13.2 India Loyalty Spend Share by Income Level, 2021
13.3 India Loyalty Spend Share by Gender, 2021

14 Further Reading

For more information about this report visit https://www.researchandmarkets.com/r/eo2pbn

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900


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