Revenue of Loyalty Companies Reaches Almost R$17.5 Billion

The loyalty program market in Brazil is booming, according to recent data from the Brazilian Association of Loyalty Market Companies (Abemf). According to the survey, the redemption of points and miles by participants increased by 18.3% in 2023 compared to 2022. In the last quarter of last year, the revenue of loyalty companies grew by 13.6%, reaching R$ 4.8 billion.

The number of registrations in loyalty programs also registered a significant increase. At the end of 2023, there were 312.5 million registrations, representing an increase of 5.4% compared to 2022. The transactions carried out by the participants of the programs increased 9.7% in the same period. The breakage rate (points/miles expired) reached its lowest level since 2020, standing at 13.1% at the end of 2023.

The expansion of the loyalty program market is corroborated by industry players such as Alloyal, a startup from Minas Gerais. The company, which repositioned itself as a Loyalty Tech, surpassed the R$ 100 million mark in annual sales in 2023, double that recorded in 2022.

Formerly known as Lecupon, Alloyal adopted its new name in February this year. The change aims to follow the growth of the market and the evolution of the profile of consumers, who now demand more than discount coupons. “Customers want more personalized and striking experiences. More than faithful, they become loyal fans of the brand.The coupon era has fallen behind, and it is up to us, players in this market, to develop solutions that meet this new consumer desire”, highlights Aluisio Cirino, CEO of Alloyal.

In 2023, Alloyal is preparing a series of innovations to increase user engagement.Among the planned actions are sweepstakes, telemedicine services, new targeting and customization options.

Currently, Alloyal has a base of 5 million users and serves 500 customer companies in all regions of Brazil. Altogether, there are 25 thousand registered establishments, including physical and online stores, restaurants, gas stations and airlines.