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.

Proposed next steps:

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As mentioned in our research, we were unable to find the exact value for the GWP/loyalty items market, specifically for the jewelry segment. As such, we are uncertain whether we can find examples of jewelry companies that have implemented loyalty items as part of their loyalty program. We propose to move forward with one request that focuses on 2-3 case studies of jewelry companies that have successfully implemented a loyalty item as part of their loyalty program. However, if information is limited about loyalty items, we will find jewelry companies that have led a successful loyalty program. For each case study we will include an overview of the loyalty program/items, how it was implemented, and success metrics that show the ROI and the overall success of the campaign.