The loyalty programs sector in Brazil showed significant growth in 2023, according to data released by the Brazilian Association of Loyalty Market Companies (Abemf). The redemption of points and miles by participants increased by 18.3% compared to 2022, while the revenue of loyalty companies in the last quarter of 2023 reached R$ 4.8 billion, a 13.6% increase.
The number of registrations in loyalty programs also grew, reaching 312.5 million by the end of 2023, a 5.4% increase from the previous year. Transactions made by participants rose by 9.7%, and the breakage rate (expired points/miles) reached its lowest level since 2020, at 13.1%.
Martin Holdschmidt, president of Abemf, states that “the data is a clear sign that loyalty initiatives continue to spark the interest of Brazilians”.
The market growth is evidenced by the performance of companies like Alloyal, a Minas Gerais-based startup that operates as Loyalty Tech. The company doubled its sales in 2023, surpassing the R$ 100 million mark in annual revenue.
Recently renamed from Lecupon to Alloyal, the company seeks to keep up with changes in the market landscape. Aluísio Cirino, CEO of the startup, emphasizes that consumers now seek more than simple discount coupons, desiring personalized and memorable experiences.
“Customers demand more personalized and memorable experiences. More than just loyal, they become fans, loyal to the brand. So, the era of the coupon is behind us. It is up to us, as players in this market, to develop solutions that meet this consumer desire,” explains Cirino.
Alloyal plans to implement new features in 2024, including raffles, telemedicine service, and advanced segmentation and customization options. Currently, the company has a user base of 5 million in 500 client companies, covering 25,000 establishments throughout Brazil.
The significant growth of the loyalty market in Brazil reflects a trend towards increased engagement between consumers and brands, driving innovations and the development of increasingly sophisticated solutions in the sector.
