Building Loyalty in LATAM: A Smart Growth Strategy

The Latin American (LATAM) region is a vibrant and diverse market, home to over 30 countries, each with its own culture, values, and economic landscape. Some economies are thriving, while others are just beginning to bloom. But across the board, there are dependable market segments and exciting opportunities for growth. 

To succeed in LATAM, businesses need to build customer loyalty by delivering what people already value and anticipating what they’re beginning to seek. In this post, we’ll explore how a rewards-based loyalty program can help your company grow in the region and highlight proven strategies to make it happen. 

Recent Performance: A Market on the Rise 

Loyalty programs are gaining serious traction in LATAM. This year, according to a Markets and Research Report the value of the loyalty market in the region is expected to have a compound annual growth rate (CAGR) of over 17%, giving LATAM’s loyalty sector a total value of $5.09 Billion USD. 

 Client programs using the CarltonOne Platform generated over $20million in sales last year, marking a 37% year-over-year increase. These programs are helping companies foster loyalty with tens of thousands of returning customers and attracting thousands of new ones across the region. 

So, what’s driving this growth? And how can your business tap into it?

Opportunities: Meeting Needs, Creating Value 

Growth in LATAM isn’t just about numbers; it’s about meeting real needs. Let’s look at some of the most popular rewards from CarltonOne programs in key LATAM markets: 

Electronics and home appliances are clearly popular, but LATAM’s diversity means there’s no one-size-fits-all approach. Travel, automotive, and outdoor activity rewards are also gaining momentum in the region. 

But customers are also looking for more than just products and experiences. They want rewards that reflect their values.  

What LATAM Customers Want: Beyond the Basics 

Recent research shows LATAM consumers are increasingly drawn to loyalty programs that offer: 

Environmental and Social Impact

Programs that give back are winning trust. Examples include:

• LATAM Airlines’ CO₂ compensation program (Chile) 
• Carrefour’s eco-friendly product incentives 
• HSBC’s Green Credit Card 
• CarltonOne’s tree-planting initiatives tied to reward redemptions

Gamification

Loyalty should feel fun. Banking apps in LATAM do this with in-app quizzes that not only provide bonus rewards, but also incentivize financial literacy.

CarltonOne offers:

• Spin-to-win, scratch-and-win, and plinko games 
• In-app promotions that reward specific behaviors 
• Leaderboards to encourage friendly competition 

Subscription-Based Perks

Long-term customers deserve recognition.

CarltonOne loyalty programs support: 

• Plateau credits for tenure-based rewards 
  
• Tiered programs with exclusive offers for senior members 

Personalization

Customers want a tailored experience. CarltonOne’s AI-powered tools: 

• Recommend rewards based on search history and trends 
• Help users discover relevant offers quickly and easily 

Overcoming Challenges: Navigating LATAM’s Complexity 

LATAM’s diversity is a strength, but it also presents challenges. To appeal to a wide range of consumers, you need a coalition program that offers merchandise, experiences, and services from multiple suppliers and brands.

CarltonOne makes this easy with:

• Custom catalogs  
  • You can set up one loyalty program for the whole region, but tailor the rewards available to each country based on local regulations or preferences 
  • You can also filter rewards for brand, price, and availability across countries 
• Local supplier partnerships that reduce costs and shipping times 

Another challenge is low banking penetration. Many consumers lack access to traditional financial tools. CarltonOne addresses this with: 

• Gift cards for local shops and services 
• Virtual prepaid debit cards in various denominations 

Customers in Mexico, Brazil, and Colombia have redeemed millions in virtual cards, with more expected as the holiday season approaches. Here are some of the most popular gift cards in some of our biggest LATAM markets:  

Ready to Grow? 

The LATAM loyalty market is projected to grow another 19% by 2029, reaching $8.7 billion USD.  

If you're ready to explore how a loyalty program can help your business thrive in LATAM, contact CarltonOne today to request a demo.