Loyalty and customer engagement 2022 Update

We are pleased to present our views on the Loyalty landscape, doing so with the aim of helping increase transparency and communication between the companies themselves, as well as financial and strategic investors.

Loyalty and customer reward – Key Themes for 2022

• The global loyalty management market is estimated to reach $18.2bn in 2026 from $8.6bn in 2021, witnessing a CAGR of 16.3% during the period, mainly propelled by the rising adoption of omnichannel and multi-channel programs, technological advancements, and a growing need for competitive differentiation

• Rising preference for personalized solutions: Consumers are looking for highly personalized interactions, and hence retailers are offering personalized loyalty programs to enhance their shopping experience.

• M&A: The M&A activity gathered pace strongly during 2021 with the number of deals increasing 2.2x of 2020 within the Loyalty segment. Noteworthy M&A deals in the space include Medallia acquisition for $7.1bn in July 2021, Bakkt acquisition (SPAC IPO) for $2.1bn in Jan 2021 and Bridg acquisition for $0.6m in Apr 2021.