Merchant Loyalty Space Trends

Goals

To identify and understand current trends in the merchant loyalty space with a focus on technological, social, regulatory, and economic trends that are driving this space in order to determine if there is an opportunity for a new product targeting merchant loyalty programs.

Early Findings

Our initial research on merchant loyalty space trends that are driving this space revealed insights. Here are the key pieces of information we found:

Merchant Loyalty Space Trends

  • One current technological trend in merchant loyalty programs is the increasing integration of these programs with e-commerce platforms. These e-loyalty programs increase online sales, train new customers to purchase online and retain existing customers, build brand awareness, gain customer referrals, capture more complete customer data, and provide more personalized digital communication. E-commerce is expected to account for at least 15.5% of all retail sales in 2020 that will accrue profits in the trillions of dollars, and this percentage of e-commerce retail sales is only anticipated to continue to grow.
  • A current social trend in merchant loyalty programs is the increasing demand for more personalization, with loyalty programs using improved segmentation to give customers personalized offers and more relevant communications. According to Salesforce, 59% of customers emphasize personalized engagement as being very important to earning their business.
  • Another current social trend in merchant loyalty programs is the increasing expectation of gamification that uses game-like features like points-scoring, achievements, leaderboards and competitive elements to build engagement. 40% of Millennials report that they are more motivated and engaged by loyalty programs that include elements of gamification.

Proposed next steps:

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