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The Current Scenario of Customer Loyalty Management in India for B2C Brands

27-11-2023 04:22:PM  | By Jessica

In the vibrant and competitive environment of the Indian market, customer loyalty management plays a crucial role in retaining and rewarding customers for their repeat purchases and engagement with brands. This blog explores the current scenario of customer loyalty management in India. 

We'll also explore some statistics that shed light on the market's growth and discuss the key trends and strategies that are driving loyalty management among brands in India.

Statistics on Customer Loyalty Management in India

Market Growth: The India loyalty program market is on the rise, with an estimated value of nearly US$ 3,363.4 Million in 2023. It is projected to reach a staggering US$ 14,502.6 Million by 2033, exhibiting an impressive CAGR of approximately 15.7% from 2023 to 2033. This makes India a substantial player in the global loyalty management program market, holding around 4%-8% of the total market share.

Changing Customer Behaviour: The COVID-19 pandemic brought significant changes in customer behaviour. According to McKinsey's customer pulse survey, 94% of Indian customers have adopted new shopping behaviours, and many intend to continue with these changes. This includes exploring digital shopping methods, trying different retailers, brands, or websites, and experimenting with private labels. These shifts have a direct impact on customer loyalty, requiring brands to rethink their customer retention strategies.

Growth of Loyalty Programs: The Loyalty Programs Market in India is set to grow by 13.2% annually, reaching US$ 2425.6 million in 2022. This growth has been consistent, with a CAGR of 13.3% recorded from 2017 to 2021. Brands in India are increasingly recognising the importance of loyalty programs in retaining their customers.

Key Trends Impacting Customer Loyalty Management in India

Contactless Engagements: B2C brands are increasingly leveraging digital platforms not just for sales but also for inspiring and motivating customers, providing social affirmations, and building their brands.

Tailored Loyalty Solutions: Customise digitised loyalty programs to suit business, ensuring quick setup and precise control.

Actionable Insights: Gain reliable metrics on buying habits, sales, and regional trends for data-driven strategies. This is helping brands shape more personalised marketing approaches.

Customer Satisfaction: The hassle-free QR code-based loyalty management programs that process well through the mobile scanner and, thus, quick contentment and attraction among customers, improving their overall experience.

Personalised Touch: By capturing customer-relevant data and comprehending their choices, brands can now design a personalised + AI-based notification approach for increased customer engagement.

The Significance of Customer Loyalty Management

Customer loyalty management is not a one-size-fits-all solution. It requires a deep understanding of customer behaviour, preferences, needs, and expectations. B2C brands must deliver consistent and superior customer experiences across multiple channels and touchpoints.

Some benefits of customer loyalty management for B2C brands include:

Increased Customer Retention: Loyalty management helps reduce customer churn and increase loyalty. Loyal customers tend to buy more frequently and across various categories, as well as recommend the brand to others.

Enhanced Customer Satisfaction: Consistent and superior customer experiences enhance satisfaction and trust. This fosters an emotional connection between customers and the brand.

Improved Customer Insights: Loyalty management helps gather valuable customer insights, enabling B2C brands to optimise and personalise their loyalty strategies and offers for different customer segments.

Increased Revenue and Profitability: Loyalty management can increase revenue and profitability by driving customer loyalty, reducing acquisition and service costs, and providing cross-selling and up-selling opportunities.

In the ever-evolving market, customer loyalty management is a continuous and vital process for B2C brands. It enables them to create and sustain long-term, profitable customers.


The current scenario of customer loyalty management in India offers promising growth opportunities for B2C brands. By understanding the changing customer behaviour and adopting innovative strategies, B2C brands can successfully foster customer loyalty and achieve long-term success.


What is loyalty management?

Loyalty management involves designing and implementing strategies to retain and reward customers for repeat purchases and engagement. It aims to increase customer lifetime value, reduce churn, and foster loyalty. 

What are the 3 R's of loyalty?

The 3 R's of loyalty are retention (keeping customers satisfied), referral (generating positive word-of-mouth), and revenue (increasing sales and profits).

How do you manage loyalty?

Managing loyalty requires understanding customer behaviour, setting clear objectives and metrics, monitoring and evaluating performance, continuous improvement, and effective communication and engagement with customers.

What are the 3 main components of loyalty?

The three main components of loyalty are attitude (perception and evaluation of the brand), behaviour (actions and interactions with the brand), and commitment (intention and willingness to stay with the brand).

What is customer loyalty management? 

Customer loyalty management is an essential aspect for brands as it ensures a strong bond with key stakeholders such as retailers, distributors, influencers, and others, fostering lasting connections and sustained business relationships.

What are the 5 stages of customer loyalty?

The five stages of customer loyalty are awareness (brand recognition), consideration (evaluation), purchase (decision to buy), retention (repeat purchases and loyalty), and advocacy (promotion of the brand).

What are the 3 R's of customer loyalty?

The 3 R's of customer loyalty are recognition (acknowledging customer preferences), reward (providing incentives for loyalty), and relevance (offering products that match customer needs).

What is a loyalty management system?

A loyalty management system helps businesses create, manage, and optimise loyalty programs. It assists in designing programs, segmenting and profiling customers, tracking and analysing data, delivering personalised offers, and measuring and improving overall performance.


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