About This Constellation ShortList™
The global customer loyalty management market is growing at a sizable clip, with some estimates eyeing it as a $40bn+ market by 2032, with a 20%+ CAGR. We believe this increase in investment marks a significant shift in how B2C and even B2B companies are adapting to new market realities in a post-pandemic and increasingly retention-focused economy.
As a subset of the overall customer experience market, customer loyalty and retention solutions elevate the customer relationship (especially in B2C use cases) from transactional to more strategic long-term engagement models. Where pricing and convenience drove legacy engagement models; now technology can better target, re-target, message and engage with consumers and B2B buyers or more profound levels - driving higher frequency of purchase, as well as higher transaction values and profitability per customer.
As artificial intelligence seeps into every software sector, AI is also transforming loyalty program software in 2025 and beyond. We AI powering more micro-targeting capabilities; where businesses can better personalize loyalty promotions and messages on a 1:1 basis for increased effectiveness. Also, enhanced analytics can identify programs, offers and other actions to drive higher profitability and faster return-on-investment for loyalty programs. Generative AI will also start to play more of a part in creating offers and other loyalty and retention program content moving forward, for both effectiveness and scalability.
Threshold Criteria
Constellation considers the following key criteria for these solutions:
- Allows strategy design
- Supports multiple loyalty programs
- Website and e-commerce integration
- Tracks loyalty currencies
- Delivers customer profiling and preference management
- Supports customer portals and communities
- Easy reporting and complex analytics
- Reward redemption
- Supports marketplaces and exchanges
- Installs in multiple industries
- Integrates with leading CRM and POS solutions
- Supports key privacy regulations
- Intuitive, omnichannel customer-facing UX
- Applies ML and AI frameworks, including Gen AI
The Constellation ShortList™
Constellation evaluates more than 35 solutions categorized in this market. This Constellation ShortList is determined by client inquiries, partner conversations, customer references, vendor selection projects, market share and internal research.
- BOND BRAND LOYALTY
- COMARCH
- EPSILON
- IVISION MOBILE
- KANGAROO
- OPEN LOYALTY
- ORACLE LOYALTY CLOUD
- SALESFORCE LOYALTY MANAGEMENT
- SAS SOFTWARE
- TALON.ONE
Frequency of Evaluation
Each Constellation ShortList is updated at least once per year. Updates may occur after six months if deemed necessary.
Evaluation Services
Constellation clients can work with the analyst and research team to conduct a more thorough discussion of this ShortList. Constellation can also provide guidance in vendor selection and contract negotiation.
