Dublin, Oct. 03, 2024 (GLOBE NEWSWIRE) -- The "Vietnam 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 - Q3 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The loyalty market in this region is expected to grow by 11.0% on an annual basis to reach US$1.07 billion in 2024. 
In value terms, the loyalty market in the country has recorded a CAGR of 12.6% during 2019-2023. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 9.5% during 2024-2028. Loyalty market in the country will increase from US$967.2 million in 2023 to reach US$1.54 billion by 2028.
The loyalty program landscape in Vietnam is characterized by rapid evolution, driven by technological advancements, changing consumer preferences, and regulatory shifts. Companies increasingly adopt personalized and technology-integrated solutions while exploring cashback options to enhance customer engagement. The launch of innovative programs by major players signifies a competitive market focused on delivering value to consumers.
As the regulatory environment becomes more stringent, businesses must navigate these changes carefully to ensure compliance and maintain consumer trust. The future of loyalty programs in Vietnam appears promising, with significant growth potential as firms continue to innovate and adapt to the needs of their customer base. Senior executives must monitor these trends, ensuring their loyalty strategies align with market dynamics and regulatory requirements to achieve sustained success.
Overview of Loyalty Program Trends
The loyalty program landscape in Vietnam is rapidly evolving, driven by changing consumer behaviours and technological advancements. Key trends shaping this market include.
- Growing Popularity: Loyalty programs are increasingly becoming a staple in various sectors, including retail, hospitality, and e-commerce. As competition intensifies, businesses recognize the importance of loyalty programs to enhance customer retention and engagement.
- Emphasis on Personalization: Brands leverage data analytics to create personalized loyalty experiences. Tailored rewards and targeted communications enhance customer satisfaction and foster deeper connections, making personalization a critical focus for loyalty programs.
- Integration of Mobile Technology: The widespread use of smartphones has transformed loyalty programs in Vietnam. Consumers can easily track their rewards, receive personalized offers, and redeem benefits through mobile applications, improving convenience and engagement.
- Coalition Loyalty Programs: There is a notable rise in coalition loyalty programs, where multiple brands collaborate to offer shared rewards. This approach allows consumers to earn and redeem points across various merchants, enhancing the overall value of loyalty programs.
- Sustainability and Social Responsibility: Consumers are increasingly attracted to brands that demonstrate social responsibility. Loyalty programs that incorporate eco-friendly practices or support local communities resonate well with Vietnamese consumers' values.
These trends indicate a dynamic and evolving loyalty program landscape that resonates with the diverse preferences of Vietnamese consumers.
New Loyalty Programs Launched in the Country
Recent months have seen the introduction of several innovative loyalty programs across Vietnam, reflecting strategic responses to consumer demands.
- Vingroup's VinID Program: Vingroup has launched the VinID loyalty program, which allows customers to earn points across its various services, including retail, real estate, and healthcare. This coalition program enables seamless point accumulation and redemption, enhancing customer engagement across multiple sectors.
- GrabRewards Expansion: Grab has expanded its GrabRewards program to include more partners and personalized offers. Users can earn points for rides, food deliveries, and other services, which can be redeemed for discounts and promotions, catering to the growing demand for convenience.
- Lazada's Loyalty Initiative: Lazada has introduced a loyalty program that rewards users for shopping on its platform. Customers can earn points for every purchase, which can be redeemed for discounts on future transactions, enhancing customer retention.
- Prudential's Pulse Loyalty Program: Prudential Vietnam has launched the Pulse loyalty program, which rewards customers for engaging in healthy activities tracked through the Pulse app. Users can earn points for completing health challenges, which can be redeemed for insurance premium discounts or wellness products.
These initiatives reflect a competitive landscape where businesses are continuously adapting their loyalty strategies to meet the diverse needs of Vietnamese consumers.
Overview of Cashback Loyalty Program Trend
Cashback loyalty programs are gaining traction as a preferred alternative to traditional point-based systems in Vietnam. Key aspects of this trend include.
- Immediate Financial Benefits: Cashback programs provide instant rewards, appealing to consumers who prefer immediate gratification over delayed rewards associated with points. This immediacy enhances the attractiveness of these programs.
- Enhanced Value Perception: As consumers become more price-sensitive, cashback offers are viewed as a way to enhance perceived value, particularly in competitive sectors like retail and e-commerce. Cashback programs can effectively drive customer loyalty by providing tangible savings.
- Integration with Digital Payment Solutions: The rise of digital wallets and payment platforms has facilitated the implementation of cashback programs, allowing seamless transactions and easy reward redemption. This integration aligns with consumers' increasing reliance on digital payment methods.
- Market Differentiation: Companies utilize cashback programs to differentiate themselves in a crowded market, driving customer acquisition and retention through attractive offers. This strategy is particularly effective in sectors where competition is intense.
This trend underscores a shift towards more flexible and consumer-friendly loyalty solutions that cater to the evolving preferences of shoppers across Vietnam.
Recent Regulatory Changes Impacting Loyalty Programs
The regulatory environment surrounding loyalty programs in Vietnam is evolving, with significant implications for businesses.
- Data Protection Regulations: Stricter regulations regarding consumer data collection and usage require loyalty programs to adopt transparent, permission-based models. Compliance with these regulations is essential for maintaining consumer trust and safeguarding personal information.
- Consumer Protection Laws: New laws safeguarding consumer rights may necessitate clearer communication regarding loyalty program terms and conditions, enhancing transparency and fairness. This regulatory focus ensures that consumers are fully informed about their rights and the benefits of participating in loyalty programs.
- E-Wallet Regulation: Recent regulatory changes regarding digital payments and e-wallets may impact loyalty programs, particularly those linked to financial services. Companies must ensure compliance with these regulations to avoid penalties and maintain customer trust.
These regulatory changes compel businesses to adapt their loyalty programs, ensuring compliance while maintaining customer engagement and satisfaction. Companies must align their loyalty strategies with legal requirements while delivering value to consumers.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 117 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $1.07 Billion |
| Forecasted Market Value (USD) by 2028 | $1.54 Billion |
| Compound Annual Growth Rate | 9.5% |
| Regions Covered | Vietnam |
Scope
Vietnam Retail Sector Spend Value Trend Analysis
- Ecommerce Spend
- POS Spend
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
Value Accumulated and Value Redemption Rate of Loyalty programs in Vietnam
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
- Loyalty Schemes
- Loyalty Platforms
Vietnam 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
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Channel
- In-Store
- Online
- Mobile
Vietnam Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
- Seller Driven
- Payment Instrument Driven
- Others
Vietnam 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
Vietnam 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
Vietnam 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
Vietnam 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
Vietnam 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
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
- Card Based Access
- Digital Access
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
- B2C Consumers
- B2B Consumers
Vietnam Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
- Free
- Free + Premium
- Premium
Vietnam Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
- Analytics and AI Driven
- Management Platform
Vietnam Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
- In House
- Third Party Vendor
Vietnam Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
- Cloud
- On-Premise
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
- Software
- Services
Vietnam Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
- Custom Built Platform
- Off the Shelf Platform
Vietnam 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/neg09g
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