The Rise of Digital Loyalty Programme Memberships

POSTED BY Susannah Hampton
Digital Loyalty Programme memberships are set to have substantial growth in users, as Juniper Research anticipates an increase from 37 billion in 2020 to 48 billion in 2023 globally.

With the cost of attracting a new customer said to be five times the cost of retaining an existing one, it follows that fostering loyalty and the associated repeat business is a high priority for companies. In addition to attracting new customers, there has been a shift in consumer expectations; with the wide variety of choice available and an omnichannel approach to buying, has come an expectation that loyalty rewards should be simple to accrue and offers tailored to the individual, thereby motivating consumers to ‘earn’ them.


QR Codes - The Virtual Stamp

Juniper Research anticipates that the total value of mobile coupons redeemed will grow from $51.6 billion in 2020 to $67.6 billion in 2023, driven by increasing QR and app coupon usage. Consumers can use QR codes for redemption against a future purchase once they buy a particular item or spend a certain amount of money. The popularity of QR coupons will continue to grow strongly in China as QR payments are dominant there, but QR coupon redemption in India and Africa will also grow three-to four-fold in the next five years as the appeal of QR widens.

Credit Card Reward Programmes

Given the digital adoption of loyalty reward programmes, there is great opportunity for card-linked marketing to attract customers with loyalty benefits. Grocery chains, such as Tesco and Sainsbury’s, offer services such as banking and insurance, with reward points for their loyalty programme members using their credit or debit cards for purchases. The clear advantage for loyalty programme members is that there is no need to carry a separate loyalty card to accrue points.

Juniper Research estimates that by the end of 2019 there were 2.7 billion credit cards in issue, an increase from the 2013 figure of 2.1 billion. With the global number of credit cards in issue anticipated to exceed 3 billion by 2023, there is clear potential to leverage card ownership and foster loyalty this way.
Our latest whitepaper on the development of Digital Loyalty Programmes, Digitisation & Driving the Loyalty Programme Experience, highlights that as economic challenges remain for both consumers and retailers, digital loyalty will become a prized differentiator as retail markets become increasingly commoditised.


Download the Whitepaper

Related Research