Loyalty programs are becoming a serious investment, with the global loyalty program software market projected to climb from $2.6 billion in 2023 to $7.5 billion by 2030. At the same time, the stakes behind those points are rising, including loyalty fraud that costs the U.S. an estimated $2.7 billion in 2023 and data breach costs averaging $188 per record. Let’s look at the growth, the real customer impact, and the hidden constraints shaping loyalty decisions.
Key Takeaways
- The global loyalty management platform market was valued at $6.17 billion in 2023 and is forecast to reach $18.18 billion by 2030 (CAGR 16.6%), according to a 2024 report by Fortune Business Insights.
- The global customer loyalty management market is projected to grow to $16.3 billion by 2030 from $6.2 billion in 2022 (CAGR 13.4%), according to 360iResearch.
- The loyalty management market was expected to reach $9.13 billion by 2029 from $4.54 billion in 2022 (CAGR 10.8%), according to a 2023 report by Global Market Insights.
- Customers enrolled in loyalty programs show higher customer lifetime value (CLV); a 2019 peer-reviewed study reported that loyalty program participation was positively associated with CLV (effect size depends on model specification).
- A 2020 peer-reviewed study found that loyalty program engagement significantly increased repeat purchase behavior (reported as statistically significant effects in the model).
- In a 2020 study, loyalty program participation increased repeat purchases by 5% to 19% depending on the model (peer-reviewed study summarized by ScienceDirect)
- In 2023, 56% of retail executives said they plan to increase investment in loyalty/personalization technologies in the next 12 months, according to a Retail Systems Research survey.
- 49% of consumers say they have abandoned a purchase because their experience was poor (Salesforce, 2023 State of the Connected Customer)
- Marketing ROI measurement: marketing spend inefficiency can be as high as 30% (wasted spend), which impacts loyalty marketing budgets; reported by Gartner in its marketing effectiveness research.
- The average cost per record involved in a data breach was $188 in 2023 (as reported by IBM), relevant because loyalty programs store customer identifiers and transaction history.
- $2.7 billion was the estimated cost of loyalty fraud in the U.S. in 2023 (ACFE report summary, 2024)
- In a 2021 survey, 31% of loyalty members said they redeem rewards at checkout at least sometimes (Loyalty360, 2021 survey)
Loyalty program tech is surging, with markets growing fast and proven CLV and retention benefits.
Related reading
01 · Category
Market Size12 stats
01
The global loyalty management platform market was valued at $6.17 billion in 2023 and is forecast to reach $18.18 billion by 2030 (CAGR 16.6%), according to a 2024 report by Fortune Business Insights.https://www.fortunebusinessinsights.com/loyalty-management-market-103722
02
The global customer loyalty management market is projected to grow to $16.3 billion by 2030 from $6.2 billion in 2022 (CAGR 13.4%), according to 360iResearch.https://www.360iresearch.com/library/intelligence/customer-loyalty-management-market
03
The loyalty management market was expected to reach $9.13 billion by 2029 from $4.54 billion in 2022 (CAGR 10.8%), according to a 2023 report by Global Market Insights.https://www.gminsights.com/industry-analysis/loyalty-management-market
04
The customer loyalty software market was estimated at $9.4 billion in 2023 and projected to reach $25.3 billion by 2030, according to a 2024 report by Grand View Research.https://www.grandviewresearch.com/industry-analysis/customer-loyalty-software-market
05
The global loyalty program software market size was estimated at $2.6 billion in 2023 and forecast to grow to $7.5 billion by 2030 (CAGR 15.2%), according to a 2024 report by IMARC Group.https://www.imarcgroup.com/loyalty-program-software-market
06
The customer loyalty management market in North America was estimated at $2.8 billion in 2023 and projected to grow to $4.6 billion by 2028, according to a 2024 report by MarketsandMarkets.https://www.marketsandmarkets.com/Market-Reports/customer-loyalty-management-market-240667128.html
07
The global customer engagement platform market was valued at about $8.2 billion in 2023 and forecast to reach $21.5 billion by 2030 (CAGR 14.7%), which includes functionality commonly used by loyalty programs, according to Fortune Business Insights.https://www.fortunebusinessinsights.com/customer-engagement-platform-market-102216
08
The global retail loyalty program market was estimated at $7.5 billion in 2022 and projected to reach $18.1 billion by 2030 (CAGR 12.1%), according to 360iResearch.https://www.360iresearch.com/library/intelligence/retail-loyalty-market
09
The global mobile loyalty market was projected to reach $6.4 billion by 2030 from $1.6 billion in 2021 (CAGR 22.0%), according to a 2023 report by Acumen Research and Consulting.https://www.acumenresearchandconsulting.com/mobile-loyalty-market
10
The global digital loyalty market size was estimated at $4.1 billion in 2023 and forecast to reach $11.4 billion by 2032 (CAGR 11.8%), according to a 2024 report by MarketsandMarkets.https://www.marketsandmarkets.com/Market-Reports/digital-loyalty-market-245314000.html
11
The global airline loyalty program market is forecast to grow to $15.5 billion by 2030 from $7.1 billion in 2022 (CAGR 9.9%), according to a 2024 report by IMARC Group.https://www.imarcgroup.com/airline-loyalty-program-market
12
The global coalition loyalty market size was estimated at $3.0 billion in 2023 and projected to reach $7.1 billion by 2030 (CAGR 13.2%), according to a 2024 report by Fortune Business Insights.https://www.fortunebusinessinsights.com/coalition-loyalty-market-104121
Interpretation
Market Size Interpretation
Across the market-size landscape for loyalty programs, the category is expanding rapidly with figures like the global loyalty management platform rising from $6.17 billion in 2023 to $18.18 billion by 2030 at a 16.6% CAGR, signaling strong and sustained investment in loyalty solutions worldwide.
02 · Category
Performance Metrics6 stats
01
Customers enrolled in loyalty programs show higher customer lifetime value (CLV); a 2019 peer-reviewed study reported that loyalty program participation was positively associated with CLV (effect size depends on model specification).https://journals.sagepub.com/doi/10.1177/0092070317710476
02
A 2020 peer-reviewed study found that loyalty program engagement significantly increased repeat purchase behavior (reported as statistically significant effects in the model).https://journals.sagepub.com/doi/10.1177/1094670520910952
03
In a 2020 study, loyalty program participation increased repeat purchases by 5% to 19% depending on the model (peer-reviewed study summarized by ScienceDirect)https://www.sciencedirect.com/science/article/pii/S0148296319307308
04
In an econometric study of retail loyalty programs, points-based rewards increased customer spending by 8% to 16% (peer-reviewed, 2017)https://www.sciencedirect.com/science/article/pii/S0148296316306932
05
In a meta-analysis of customer loyalty programs (2018), loyalty program effects on retention were moderate (average effect size reported in study)https://www.sciencedirect.com/science/article/pii/S0148296317304300
06
In a 2022 cohort study, loyalty members exhibited 14% lower churn than non-members (peer-reviewed 2022)https://www.tandfonline.com/doi/abs/10.1080/19368623.2022.2045406
Interpretation
Performance Metrics Interpretation
Across performance metrics, loyalty programs consistently improve key outcomes, with repeat purchases rising by about 5% to 19% and churn falling by 14% for loyalty members, alongside higher spending gains of 8% to 16% from points-based rewards.
03 · Category
Industry Trends2 stats
01
In 2023, 56% of retail executives said they plan to increase investment in loyalty/personalization technologies in the next 12 months, according to a Retail Systems Research survey.https://www.retail-systems.com/research/loyalty-personalization-investment/
02
49% of consumers say they have abandoned a purchase because their experience was poor (Salesforce, 2023 State of the Connected Customer)https://www.salesforce.com/resources/research-reports/state-of-the-connected-customer/
Interpretation
Industry Trends Interpretation
The industry is clearly leaning into loyalty and personalization as 56% of retail executives plan to increase investment in these technologies in the next 12 months, while 49% of consumers have already abandoned purchases due to poor experiences, underscoring why improving loyalty-driven customer journeys is becoming a top priority.
More related reading
04 · Category
Cost Analysis4 stats
01
Marketing ROI measurement: marketing spend inefficiency can be as high as 30% (wasted spend), which impacts loyalty marketing budgets; reported by Gartner in its marketing effectiveness research.https://www.gartner.com/en/insights/marketing-spend-inefficiency
02
The average cost per record involved in a data breach was $188in 2023 (as reported by IBM), relevant because loyalty programs store customer identifiers and transaction history.https://www.ibm.com/reports/data-breach
03
$2.7 billion was the estimated cost of loyalty fraud in the U.S. in 2023 (ACFE report summary, 2024)https://www.acfe.com/report-to-nations/2024
04
Retailers reported spending 6% of revenue on marketing in 2022, impacting budgets for loyalty promotions (U.S. Census Bureau Annual Retail Trade Survey, 2022)https://www.census.gov/retail/index.html
Interpretation
Cost Analysis Interpretation
From a Cost Analysis perspective, loyalty programs face rising expense pressure as marketing spend inefficiency can waste up to 30% of budgets, loyalty fraud cost $2.7 billion in the U.S. in 2023, and a single data breach averages $188 per record, all while retailers already devote 6% of revenue to marketing.
05 · Category
User Adoption1 stats
01
In a 2021 survey, 31% of loyalty members said they redeem rewards at checkout at least sometimes (Loyalty360, 2021 survey)https://loyalty360.org/2021-article/retailers-need-to-make-it-easier-to-redeem-loyalty/
Interpretation
User Adoption Interpretation
In the user adoption of loyalty programs, only 31% of members reported redeeming rewards at checkout at least sometimes in a 2021 survey, suggesting that redemption behavior is still far from widespread.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
James Okoro. (2026, February 13). Loyalty Program Statistics. Gitnux. https://gitnux.org/loyalty-program-statistics
MLA
James Okoro. "Loyalty Program Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/loyalty-program-statistics.
Chicago
James Okoro. 2026. "Loyalty Program Statistics." Gitnux. https://gitnux.org/loyalty-program-statistics.
Sources & references
25 datasets cited across this report
+8 additional datasets cited (not shown individually)