The loyalty program sector in Brazil experienced significant growth in 2023, according to data released by the Brazilian Association of Loyalty Market Companies (Abemf). 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 by 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, 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's growth is evidenced by the performance of companies like Alloyal, a startup from Minas Gerais that operates as a Loyalty Tech company. The company doubled its sales in 2023, surpassing the R$100 million mark in annual revenue.
Recently renamed Alloyal from Lecupon, the company seeks to keep up with changes in the market profile. Aluísio Cirino, CEO of the startup, emphasizes that consumers are now looking for more than just discount coupons, desiring personalized and memorable experiences.
“Customers are asking for more personalized and memorable experiences. More than just loyal customers, they become fans, devoted to the brand. So, the coupon era is over. It is up to us, the 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 services, and advanced targeting and customization options. Currently, the company has a base of 5 million users across 500 client companies, encompassing 25,000 establishments throughout Brazil.
The significant growth of the loyalty market in Brazil reflects a trend of greater engagement between consumers and brands, driving innovation and the development of increasingly sophisticated solutions in the sector.
