The loyalty program 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, an increase of 13.6%.
The number of registrations in loyalty programs also grew, reaching 312.5 million at the end of 2023, an increase of 5.4% compared to the previous year. Transactions made by participants rose 9.7%, and the breakage rate (expired points/miles) reached its lowest level since 2020, with 13.1%.
Martin Holdschmidt, president of Abemf, says that “os data is a clear sign that loyalty initiatives continue to arouse the interest of the” Brazilians.
The market growth is evidenced by the performance of companies such as Alloyal, a mining startup that acts as Loyalty Tech.The company doubled its sales in 2023, surpassing the R$ 100 million mark in annual revenues.
Recently renamed Lecupon to Alloyal, the company seeks to keep up with changes in the market profile. Aluisio Cirino, CEO of the startup, points out that consumers now seek more than simple discount coupons, wishing personalized and remarkable experiences.
“Customers ask for more personalized and more remarkable experiences. More than faithful, they become fans, loyal to the brand. So, the era of the coupon was left behind. It is up to us, players in this market, to develop solutions that address this desire of the consumer”, explains Cirino.
Alloyal plans to implement new features in 2024, including sweepstakes, telemedicine service and advanced segmentation and customization options. Currently, the company has a base of 5 million users in 500 client companies, covering 25 thousand establishments throughout Brazil.
The significant growth of the loyalty market in Brazil reflects a trend of greater engagement between consumers and brands, driving innovations and the development of increasingly sophisticated solutions in the sector.
