Germany's Loyalty Programs Market Projected to Reach US$8.98 Billion by 2028 with Integration of Web3 and NFTs Driving Innovation
DUBLIN, March 18, 2024 /PRNewswire/ -- The "Germany 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 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The loyalty market in Germany is expected to grow by 10.5% on an annual basis to reach US$6.36 billion in 2024. In value terms, the loyalty market in Germany has recorded a CAGR of 11.7% during 2019-2023 and will continue to grow, recording a CAGR of 9% during 2024-2028. The German loyalty market will increase from US$5.76 billion in 2023 to reach US$8.98 billion by 2028.
Innovation is fast-growing in the German loyalty program and the trend is projected to continue over the medium term. Businesses are seeking to integrate loyalty programs with Web3 to boost member experience and engagement in Germany. Retailers are also revamping their programs in Germany, a trend which has been a widespread momentum across the European region.
Furthermore, German retailers are also launching loyalty programs in other regional markets, amid the growing popularity among shoppers. Regional players are expected to launch their loyalty schemes over the medium term.
Firms are looking to integrate loyalty programs and NFTs to create innovative experiences for members
Many leading corporations have integrated NFTs (non-fungible tokens) and loyalty over the last two years. The trend is also picking up pace in the German market, with businesses seeking to leverage NFTs and loyalty programs to drive innovative experiences for customers.
Lufthansa, the German airline carrier, entered into a strategic partnership with Polygon in September 2023. As part of the collaboration, the airline aims to launch an NFT-powered loyalty program, which will gamify the flight experience for flyers. Notably, the airline carrier will enable flyers to collect NFTs, which can be utilized for rewards like accumulating miles and accessing the lounge. Lufthansa has partnered with Polygon Blockchain for its speed and low fees.
From the short to medium-term perspective, the publisher expects more firms in the German market to power their loyalty programs using NFTs and other Web3 applications. This will drive innovation in the sector, which is expected to grow at a steady pace over the next three to four years.
Retailers are changing their loyalty schemes to meet ever-evolving consumer demands in Germany
Amid the ever-evolving consumer demands, retailers are also making significant changes to loyalty schemes across Europe, and similar trends are seen in the German loyalty program market too.
Lidl, one of the leading supermarket chains in Germany, announced significant changes to its loyalty program in 2023. The budget supermarket, for instance, has included free bakery items and a 10% off incentive. Members of the loyalty programs are now entitled to a free in-store bakery coupon when their spending reaches £50 in a month. Furthermore, consumers spending £250 in a month will receive 10% off on their next purchase. The changes have been made keeping in mind the rising food inflation in the German market.
Going forward, more retailers including supermarkets are expected to change their loyalty schemes to better meet consumer demands. This will drive the competitive landscape in the sector, thereby supporting the growth of the industry over the next three to four years.
German firms are launching loyalty programs in other regional European markets to boost engagement
The demand for loyalty programs is growing rapidly among consumers across European markets. To tap into the growing demand, German firms are launching new and innovative schemes in regional markets.
Aldi, for instance, launched an emoji brand loyalty program dedicated to sport and exercise. The loyalty program has been launched across all of its 440 stores in Belgium. Since the launch, the emoji brand collection campaign has been a success among shoppers. The firm is hoping to achieve a similar result with its new campaign in the Belgium market. With this program, Aldi Belgium is targeting to build higher engagement with sports enthusiasts.
The expects the firm to launch more such innovative loyalty schemes for shoppers in 2024. This will support the growth of the loyalty programs industry over the short to medium-term perspective.
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.
Key Report Highlights:
- Gain insights into the Germany loyalty spend market: The report provides a comprehensive overview of the Germany loyalty spend market, including market size, growth drivers, and trends. This information can help businesses to make informed decisions about their loyalty program strategies.
- Benchmark your business against competitors: The report provides a competitive analysis of the Germany loyalty spend market, which can help businesses to identify their strengths and weaknesses relative to their competitors. This information can help businesses to improve their loyalty program strategies and gain a competitive advantage.
- Stay up-to-date on the latest trends in the loyalty spend market: The report provides an overview of the latest trends in the loyalty spend market, such as the growing popularity of mobile-based loyalty programs and the increasing awareness of the benefits of loyalty programs among consumers. This information can help businesses to stay ahead of the competition and improve their loyalty program strategies.
- Make informed decisions about your loyalty program: The report provides a comprehensive overview of the factors to consider when developing a loyalty program, such as the target audience, the rewards and benefits, and the marketing and communication strategy. This information can help businesses to develop a loyalty program that is effective and successful.
Report Scope
This report provides in-depth, data-centric analysis of loyalty programs in Germany. Below is a summary of key market segments:
Germany Retail Sector Spend Value Trend Analysis
- Ecommerce Spend
- POS Spend
Germany Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
Value Accumulated and Value Redemption Rate of Loyalty programs in Germany
Germany Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
- Loyalty Schemes
- Loyalty Platforms
Germany Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
- Points programs
- Tier-based programs
- Mission-driven programs
- Spend-based programs
- Gaming programs
- Free perks programs
- Subscription programs
- Community programs
- Refer a friend program
- Paid programs
- Cashback programs
Germany Loyalty Spend Market Size and Future Growth Dynamics by Channel
- In-Store
- Online
- Mobile
Germany Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
- Seller Driven
- Payment Instrument Driven
- Others
Germany Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Germany Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Germany Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Germany Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Germany Loyalty Spend Market Size and Future Growth Dynamics by Retail
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
- Other
Germany Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
- Card Based Access
- Digital Access
Germany Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
- B2C Consumers
- B2B Consumers
Germany Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
- Free
- Free + Premium
- Premium
Germany Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
- Analytics and AI Driven
- Management Platform
Germany Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
- In House
- Third Party Vendor
Germany Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
- Cloud
- On-Premise
Germany Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
- Software
- Services
Germany Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
- Custom Built Platform
- Off the Shelf Platform
Germany Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour
- By Age Group
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/hysunx
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