Dublin, May 17, 2022 (GLOBE NEWSWIRE) -- The "Italy 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 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Loyalty Programs Market in Italy is expected to grow by 11.8% on annual basis to reach US$ 3453.3 million in 2022
In value terms, the Loyalty Programs Market in Italy has recorded a CAGR of 12.2% during 2017-2021. The Loyalty Programs Market in Italy will continue to grow over the forecast period and is expected to record a CAGR of 11.3% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 3088.7 million in 2021 to reach US$ 5293.5 million by 2026.
Italians have a strong preference for beauty and fashion, high demand for quality products and services, and are also known for being loyal to their brands. At the same time, Italian consumers are also resistant to special promotions. However, with the onset of Covid-19, the Q1 2022 Global Loyalty and Rewards Market Survey stated that around 72% of Italian consumers changed stores, and brands, which forced Italian brands to redesign their customer retention and loyalty strategies.
With the Italian customers' changing tastes and preferences, Italian brands are designing loyalty programs to drive customer engagement based on the following strategies:
- Companies should integrate a complex combination of loyalty design principles to drive growth in the business.
- Brands should understand the psychology & behavioral science before designing any loyalty program.
- Desirable reward attracts customers; therefore, loyalty programs should award customers with attractive rewards.
- Again, the use of gamification technology to interact with the customers will help the companies to retain customers.
- Moreover, the introduction of personalization in the loyalty programs might also help the company in the longer run.
Additionally, making the loyalty programs stickier helps businesses, especially hospitality sector, to drive customer retention. Since leisure has become an important part of customer journeys, adding complementary products and services outside hotels improve the stickiness of these loyalty programs.
Consequently, with the revival of the economic situation, the travel and hospitality sector is heavily investing in these loyalty strategies to drive growth in the country. Therefore, the publisher expects that designing loyalty programs based on these strategies will help the Italian brands and organizations to generate revenue from the medium to long term perspective.
Italy-based restaurant brands are expanding their businesses with unique loyalty programs
To recover from the operational losses, restaurant chains are focusing on attracting customers through different strategies such as by launching loyalty and rewards programs, through partnerships, and revamping their CRM platforms.
- In 2021, Italy-based fast-casual brand Poke House which also operates in France, Portugal, Spain, and the United Kingdom, earned nearly US$50 million in annual revenues.
- The company runs as a hybrid retail-digital concept with a proprietary CRM platform, a strong loyalty program, and data-driven analytics.
- Specifically, the company runs the POKE HOUSE SQUAD program, which helps the customers to accumulate points, get benefits from personalized services, receive exclusive dedicated promotional offers, etc.
- Once the customer subscribes to the loyalty program, he gets a digital loyalty Squad Card which can be linked to the customers' mobile wallets.
- Notably, in January 2022, the company announced to enter the American market in partnership California-based Sweetfin.
Through continuous and real-time analysis of the customer data, the company is able to quickly develop strategies that will help the 14-unit chain triple in size and will give the entry to the United States a much larger fast-casual brand from Europe.
Financial super apps are building partnerships with mobile commerce platforms to launch rewards programs in the country
With rapid digitalization in the financial sector, super app developers are introducing rewards programs through strategic partnerships to expand their market share in the country.
- In August 2021, financial super app Curve partnered with mobile commerce platform Button to offer an array of cashback rewards for customers in France, Italy, Spain, and the United Kingdom on online buys.
- Notably, all the customers will be able to utilize cash back rewards when they spend on booking through Expedia and Hotels.com, ordering food, or finding a summer activity with Groupon.
- Additionally, these rewards can be redeemed multiple times, and also as many offers can be used as per the customer's wish.
- Curve guaranteed to reward every time for the customers who want to travel post covid but are more conscious of their spending.
Therefore, Curve, which consolidates all cards into one smart card through this rewards program, is likely to attract a significant customer base since customers will now have the ability to earn cashback on every card they spend through Curve.
Buy now, pay later firms are launching reward programs to expand their target market in Italy
Buy now, pay later (BNPL) providers such as, Klarna introduced a new rewards program together with the Pay Now option for the customer in the United Kingdom. However, the company planned to expand the reward program in nine other markets such as, Italy, Australia, Ireland, France, Spain, Portugal, Poland, Canada, and New Zealand. The company included different features to attract more consumers.
- Klarna's customers will earn reward points for paying through Pay Now, the immediate payment option, or for making a payment on time using Pay Later or Pay in three options.
- Together with this, Klarna also launched a new feature called 'Missions' to incentivize its customers to explore the app. Specifically, the customers will earn rewards on completion of each small, engaging task to discover different features of the Klarna App through Missions.
Therefore, the publisher anticipates that through the rewards program, the company is injecting responsible usage of BNPL loans among its customers. In other words, the Sweden-based firm is diving into loyalty programs to encourage spending as well as decrease the probability of missed or late payments by rewarding customers for on-time payments with the Pay Now option.
Scope
Italy Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Italy Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
Italy Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
- Point-based Loyalty Program
- Tiered Loyalty Program
- Subscription Loyalty Program
- Perks Loyalty Program
- Coalition Loyalty Program
- Hybrid Loyalty Program
Italy Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
- In-Store
- Online
- Mobile
Italy Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Italy Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
- Other
Italy Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
Italy Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
Italy Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
- Software
- Services
Italy Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
Italy Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021
- By Age Group
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/hr669l
