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, a 13.6% increase.
The number of registrations in loyalty programs also increased, reaching 312.5 million by the end of 2023, a 5.4% increase compared to the previous year. The transactions made by participants increased 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 startup that operates as Loyalty Tech. The company doubled its sales in 2023, surpassing R$ 100 million in annual revenue.
Recently rebranded from Lecupon to Alloyal, the company aims to keep up with changes in the market profile. Aluísio Cirino, CEO of the startup, highlights that consumers now seek more than just discount coupons, desiring personalized and memorable experiences.
“Customers are asking for more personalized and memorable experiences. More than just loyal, they become fans, loyal to the brand. So the coupon era is behind us. It is up to us, players in this market, to develop solutions that meet this consumer desire”, explains Cirino.
A 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 users across 500 client companies, covering 25,000 establishments throughout Brazil.
The significant growth of the loyalty market in Brazil reflects a trend towards greater engagement between consumers and brands, driving innovation and the development of increasingly sophisticated solutions in the sector.
