Dublin, May 23, 2022 (GLOBE NEWSWIRE) -- The "Mexico 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.
According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in Mexico is expected to grow by 13.0% on annual basis to reach US$ 2123.0 million in 2022. In value terms, the Loyalty Programs Market in Mexico has recorded a CAGR of 13.4% during 2017-2021. The Loyalty Programs Market in Mexico will continue to grow over the forecast period and is expected to record a CAGR of 12.7% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 1878.0 million in 2021 to reach US$ 3422.4 million by 2026.
In Mexico, some of the most successful customer loyalty and rewards programs are engaging and retaining customers by creating an emotional connection to the brand while making participation in the program effortless. Over the last three to four years, the strategy of offering loyalty and rewards programs seems to be paying off for brands and businesses as they continue to compete with declining foot traffic and profit margins in the country.
With the growing traction towards loyalty and rewards programs among consumers in Mexico, an increasing number of businesses are planning to invest more in their customer loyalty programs. According to the Global Loyalty and Rewards Market Survey, around 65.5% of the businesses were planning to invest more in their customer loyalty program. Moreover, many businesses were willing to spend substantial amount on loyalty technologies compared to the previous year.
Over the next six to eight quarters, the percentage of retail businesses offering loyalty programs is expected to increase significantly in Mexico on the back of increasing demand among consumers. Notably, in 2019, more than half of the cafeterias offered some form of loyalty program to their customers in Mexico. The publisher expects these numbers to improve significantly over the next four to eight quarters as retail businesses, including specialty retail shops and convenience stores, are seeking to drive increased foot traffic in Mexico to recover from the pandemic losses.
Businesses across industries have developed and launched loyalty programs over the last three to four years in the country. From travel-based platforms to quick-service restaurants and convenience stores, the adoption of loyalty programs has increased across the industry. Some of the key loyalty program providers that are driving the industry growth include Zinrelo and PAYBACK. Moreover, OXXO, Grupo Iberostar, and El Pollo Loco are among other businesses that are also supporting the industry growth in Mexico.
Apart from these players, global loyalty solutions providers such as Frequency Marketing are also leading the growth of the loyalty and rewards programs industry in the country. With the demand among consumers increasing year on year basis, the publisher expects more new and global players to launch and expand their services in the Mexican loyalty and rewards programs industry from the short to medium-term perspective.
Regional loyalty program providers are seeking to expand their footprint in Mexico
As the loyalty and rewards programs industry continues to mature and grow in Mexico, regional and global providers are seeking to expand their footprint in the country to gain a market share for themselves. For instance,
- In April 2022, Leal, the Colombian startup that offers loyalty programs in the Latin American region, announced that the firm had raised US$10 million in its Series A funding round, which the firm is planning to use for launching its operations in Mexico. With the newly infused capital, the firm is planning to forge alliances with more than 1,000 retailers and onboard 3 million consumers by the end of 2022.
- Notably, the firm is targeting retailers who are looking to better understand their customers through consumer data analysis technology. Through an API, Leal connects to billing and point of sale payment terminals, thereby capturing important consumption habits and other data. This is then converted into analytics and business intelligence, helping retailers increase their business growth.
Loyalty program providers are entering into strategic partnerships with digital payment firms in Mexico
Over the last three to four years, the adoption of digital payment services has surged significantly among consumers in Mexico. In the midst of this growing adoption of digital payment products, loyalty program providers are targeting digital payment firms to further boost their growth in the country. For instance,
- In August 2021, PAYBACK, one of the leading customer loyalty program providers in Mexico, announced that the firm had entered into a strategic partnership with i2c, the leading digital payment, and banking technology firm, and KEO, an innovative lending company.
- Under the partnership, the firms are launching a KEO PAYBACK American Express Card. Notably, the card is aimed at boosting consumer credit availability in Mexico, which will subsequently help in increasing financial inclusion. Apart from offering credit access, PAYBACK will also provide Mexican consumers with robust loyalty benefits when they use the KEO PAYBACK American Express Card.
The publisher expects more loyalty program providers to enter into strategic partnerships with digital payment firms over the next four to eight quarters. This is expected to further boost the financial inclusion rate in the country from the short to medium-term perspective while supporting the growth of the loyalty and rewards programs market in Mexico.
Convenience stores are launching rewards programs to expand their customer base in Mexico
In 2019, only 4% of the convenience stores in the country had a loyalty and rewards program in place. However, in the midst of growing consumer demand and preference to shop from stores that offer loyalty programs, an increasing number of convenience stores are launching their rewards programs to attract more consumers to their storefronts. For instance,
- In October 2021, OXXO, the convenience store retailer, announced that the firm had launched the OXXO PREMIA Program for consumers in Mexico. Under the reward program, consumers receive OXXO PREMIA Points which can later be exchanged for products.
- Notably, consumers can exchange the accumulated points at any of its stores nationwide. The reward program launched by OXXO adds up to the launch of Spin, an application to carry out transactions using mobile devices. The firm announced that every Spin by OXXO customer would have the OXXO PREMIA account for receiving the benefits of the rewards program.
With consumer demand for loyalty programs increasing, the publisher expects more convenience stores to develop and launch a loyalty program over the next forecast period.
Reasons to buy
- In-depth Understanding of Loyalty Programs Market Dynamics: Understand market opportunities and key trends along with forecast (2017-2026).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate loyalty strategy; assess market specific key trends, drivers, and risks in the industry.
Key Topics Covered:
1 About this Report
2 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
3 Mexico Key Market Insight and Innovation
3.1 Mexico Consumer Behavior
3.2 Mexico Competitive Landscape and Growth Strategies
3.3 Mexico Regulation Trends
4 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
4.1 Mexico Loyalty Spend Share by Functional Domains, 2017-2026
4.2 Mexico Loyalty Spend Value by Loyalty Schemes, 2017-2026
4.3 Mexico Loyalty Spend Value by Loyalty Platforms, 2017-2026
5 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type
5.1 Mexico Loyalty Spend Share by Loyalty Program Type, 2017-2026
5.2 Mexico Loyalty Spend Value by Point-based Loyalty Program, 2017-2026
5.3 Mexico Loyalty Spend Value by Tiered Loyalty Program, 2017-2026
5.4 Mexico Loyalty Spend Value by Subscription Loyalty Program, 2017-2026
5.5 Mexico Loyalty Spend Value by Perks Loyalty Program, 2017-2026
5.6 Mexico Loyalty Spend Value by Coalition Loyalty Program, 2017-2026
5.7 Mexico Loyalty Spend Value by Hybrid Loyalty Program, 2017-2026
6 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Channel
6.1 Mexico Loyalty Spend Share by Channel, 2017-2026
6.2 Mexico Loyalty Spend Value by In-Store, 2017-2026
6.3 Mexico Loyalty Spend Value by Online, 2017-2026
6.4 Mexico Loyalty Spend Value by Mobile, 2017-2026
7 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors
7.1 Mexico Loyalty Spend Share by Key Sectors, 2017-2026
7.2 Mexico Loyalty Spend Value in Retail, 2017-2026
7.3 Mexico Loyalty Spend Value in Financial Services, 2017-2026
7.4 Mexico Loyalty Spend Value in Healthcare & Wellness, 2017-2026
7.5 Mexico Loyalty Spend Value in Restaurants & Food Delivery, 2017-2026
7.6 Mexico Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines), 2017-2026
7.7 Mexico Loyalty Spend Value in Telecoms, 2017-2026
7.8 Mexico Loyalty Spend Value in Media & Entertainment, 2017-2026
7.9 Mexico Loyalty Spend Value in Others, 2017-2026
8 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Retail
8.1 Mexico Loyalty Spend Share by Retail Segments, 2017-2026
8.2 Mexico Loyalty Spend Value by Diversified Retailers, 2017-2026
8.3 Mexico Loyalty Spend Value by Department Stores, 2017-2026
8.4 Mexico Loyalty Spend Value by Specialty Stores, 2017-2026
8.5 Mexico Loyalty Spend Value by Clothing, Footwear & Accessories, 2017-2026
8.6 Mexico Loyalty Spend Value by Toy & Hobby Shops, 2017-2026
8.7 Mexico Loyalty Spend Value by Supermarket and Convenience Store, 2017-2026
8.8 Mexico Loyalty Spend Value by Home Merchandise, 2017-2026
8.9 Mexico Loyalty Spend Value by Other, 2017-2026
9 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
9.1 Mexico Loyalty Spend Share by Accessibility, 2017-2026
9.2 Mexico Loyalty Spend Value by Card Based Access, 2017-2026
9.3 Mexico Loyalty Spend Value by Digital Access, 2017-2026
10 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
10.1 Mexico Loyalty Spend Share by Consumer Type, 2017-2026
10.2 Mexico Loyalty Spend Value by B2C Consumers, 2017-2026
10.3 Mexico Loyalty Spend Value by B2B Consumers, 2017-2026
11 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
11.1 Mexico Loyalty Spend Share by Loyalty Platform, 2017-2026
11.2 Mexico Loyalty Spend Value by Software, 2017-2026
11.3 Mexico Loyalty Spend Value by Services, 2017-2026
12 Mexico Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms
12.1 Mexico Loyalty Spend Share by Software Platforms, 2017-2026
12.2 Mexico Loyalty Spend Value by Custom Built Platform, 2017-2026
12.3 Mexico Loyalty Spend Value by Off the Shelf Platform, 2017-2026
13 Mexico Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior
13.1 Mexico Loyalty Spend Share by Age Group, 2021
13.2 Mexico Loyalty Spend Share by Income Level, 2021
13.3 Mexico Loyalty Spend Share by Gender, 2021
14 Further Reading
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