Loyalty Programs Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of loyalty programs, the location of the office plays an important role. For instance, the average salary of a loyalty marketing manager in the U.S. ranges from USD 70,000 to USD 85,000 annually. Similarly, the average salary of the loyalty marketing manager in India is around USD 10,000 each year. The salary range may fluctuate significantly based on various crucial factors, such as education, certifications, additional skills, and years of experience within the profession.

The salary of a loyalty consultant in the U.S. ranges from USD 70,000 to USD 125,000/year. Similarly, in the U.K., a loyalty consultant can earn between USD 38,000 to USD 68,000/year. In Canada, the salary of a loyalty consultant can start from USD 55,000 to USD 95,000/year. The salaries vary based on their expertise and years of experience.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the loyalty marketing specialist at Ascendant Loyalty Marketing and Emakina Company receives a 5% - 9% higher base salary compared to the salary received by the loyalty marketing specialist working in companies such as Zinrelo and XGate. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the loyalty programs category in the last year:

In April 2023, Capillary Technologies acquired Brierley+Partners, a loyalty technology provider. This acquisition signifies the Capillary Technologies' growing footprint in the North American region. The acquiree’s expertise in the field of loyalty technology and services will be an addition to Capillary’s current capabilities, providing valuable expertise to the team. It will also help Capillary Technologies to offer the best possible customer loyalty and engagement solutions to its clients.

In March 2023, Sabre Corporation and Capillary Technologies declared a multi-year partnership and distribution agreement. As part of the agreement, Sabre will use the latter’s “Loyalty Management” solution and integrate it under Sabre’s platform. The platform is especially targeted towards hoteliers and airline customers. Both companies will get access to important insights about their customer loyalty data with the help of real-time analytics. This will also benefit the hoteliers and airlines significantly.

In March 2023, BMO acquired LoyaltyOne’s AIR MILES reward program business. BMO's AIR MILES acquisition benefits all Canadians, including BMO clients, merchants, and partners. The acquisition helped AIR MILES customers through rewards/points at more than 300 global, Canadian, and online brands and retail locations across the country.