Home > Market News >How Crypto Loyalty Programs Through Blockchain Can Take Your Business to New Heights
Published on 04/25/2024 by Aurpaytech
If your business accepts payments through blockchain, you may not realize how valuable crypto loyalty programs can be for your customer retention rate. It’s common knowledge that customer loyalty and engagement are massive driving forces for online businesses, so why not enhance their experience each time they use your service? Customers who feel they’ve earned something by using your service are much more likely to return, which rings especially true when using cryptocurrency and blockchain.
Below are some key reasons why crypto loyalty programs are worth considering, which will help you decide where to start and which aspects to prioritize for your business.
What Are the Benefits of a Crypto Rewards Program?
Unlike standard loyalty programs, which use point systems (think airline miles and hotel points) to reward dedicated customers, crypto reward programs work primarily through tokens, whether it’s Bitcoin, Ethereum, or any other form on the many types of decentralized networks. Let’s break down why they can mean so much to your company’s acquisition and retention rates:- Decentralized Means More Customer Privacy – More and more, we see online consumers fed up with cookies, data mining, and tracking of shopping patterns. Customers demand anonymity on the internet, and this should expand to their loyalty programs. When using a crypto or Bitcoin rewards program, customers get to keep that privacy, bottom line. Decentralization means the governing company doesn’t have access to a customer’s name, address, spending habits, and other sellable data that point-based systems tend to extract; this alone will leave customers feeling safe and secure when signing up for a program.
- Blockchain Loyalty Programs Reduce Costs – Loyalty programs through blockchain can significantly reduce system management costs via smart contracts. These digital contracts report secure and transparent transactions to your company’s various systems, establishing a tracked and verified process that reduces costs associated with input errors, fraud, and other often unavoidable circumstances. They can even be integrated into legacy systems or other systems that may not be able to handle a point-based system efficiently.
- Blockchain Loyalty Tokens Can Uptick in Value – Standard loyalty program point systems remain at a fixed amount once rewarded to a customer and are only subject to change when the company feels like it. AKA, the program operates under a single centralized body that can do as it pleases, often deterring customers if their points suddenly change based on an internal decision by shareholders or C-suite execs. Conversely, blockchain loyalty tokens can fluctuate with market demand, which customers can keep track of in real time instead of fiat money.
- Crypto Loyalty Programs Create Unique Value-Added Opportunities – Customers who can expect to receive crypto through a loyalty program are much more likely to seek other valuable opportunities from a company; this means businesses with these programs can propel other services and link them to various rewards which they may not have considered previously. A service or product that is low on the company’s totem pole can skyrocket if customers know they can earn rewards by choosing it over another; this creates unique opportunities to expand, shift product prioritization, and analyze what is and isn’t working as a unique value proposition.
