Research Outline

Loyalty Programs

Goals

To determine the market size for the GWP/loyalty/reactivation items, specifically for the jewelry industry and to provide several case studies of jewelry companies that have successfully implemented a loyalty program, including details on its success.

Early Findings

After a thorough research through industry reports and trusted media sites such as Forbes, Business Wire, and Markets and markets, we have determined that information specific to the market size of GWP/loyalty items is not readily available. While we were not able to find the exact market size for GWP/loyalty items, we were able to find the market size for loyalty management but information specific to jewelry was unavailable. We have also included several general statistics about the ROI a business is expected to receive of they implement a loyalty rewards program.
  • Loyalty management deals with rewarding consumers for past purchase and providing them with incentives to make future purchase.
  • The market is divided into several industries: BFSI , consumer goods and retail , healthcare , IT and telecom , travel and hospitality , and manufacturing. Usually, the jewelry segment would fall within the consumer goods and retail category but the reports did not provide such a granular breakdown and the specific market size for jewelry was not made available.
  • The global market size for loyalty management was $2.62 billion in 2018 and is expected to increase to 9.28 billion in 2024, growing at a CAGR of 23.3%.

Overall ROI for loyalty rewards programs

  • Over 74% of adults have noted that they belong to at least one loyalty program.
  • Moreover, loyalty program members spend $42.33 more with traditional retailers on average compared to shoppers that are not in a loyalty program.
  • In fact, 73% of loyalty program members are more likely to recommend brands with good loyalty programs.
  • 69% of consumers say that their choice of retailer is influenced by whether they can earn customer loyalty/rewards program points whereas 57.4% of consumers join loyalty programs to save money and 37.5% to receive rewards.
  • 83% of customers believe that loyalty programs are the primary reason to continue doing business with certain companies while over 54% have noted that they would consider doing more business with a company for loyalty rewards.
  • 67% of customers have also noted that surprise gifts are very important for making loyalty programs successful.