Crypto loyalty programs are an essential part of the successful marketing strategy of any business. Moreover, they are the main source hook for retention and penetrative engagement. Lately, the crypto industry has been adopting these programs widely.
As with the growing popularity of digital assets, the common question here is:
Can Cryptocurrency replace loyalty points?
Many businesses have initiated loyalty programs that offer rewards in digital currencies instead of reward points.
What Are Loyalty Programs?
Loyalty programs encourage consumers to engage with the company to earn rewards.
The more you spend on one brand, the more points you earn. These points are redeemable for items, upgrades, and valuable experiences.
Crypto loyalty programs distribute rewards in the form of cryptocurrencies such as Bitcoin (BTC), Ether (ETH), altcoins, and other crypto tokens.
Quick fact
Sperry & Hutchinson introduced the first loyalty program – the S&H Green Stamp program, which began in 1896. The program allowed customers to receive green cards upon purchase from a participating retail store.
Advantages of Crypto Loyalty Programs:
Crypto loyalty programs provide benefits not only for businesses but for customers too. Although loyalty point programs and crypto loyalty programs may sound similar, they are quite different.
For one, loyalty points have a fixed value, but the price of reward tokens will vary according to the demand in the market. Consumers and brands have started seeing cryptocurrency as the future of loyalty programs.
Here are some top advantages of Crypto loyalty programs:
- Crypto rewards can help users enter the crypto market.
- It helps limit a company’s financial liability in case of a data breach.
- It works as a marketing opportunity for companies to engage more customers.
5 Best Crypto Loyalty Reward Programs In 2022
Recently, several programs offer rewards in the form of cryptocurrencies. While some offer rewards for using credit or debit cards, others offer rewards on sign-up or deposits.
Many crypto exchanges have started introducing their own coin to make their rewarding system more accessible.
Here are the five best crypto loyalty reward programs in 2022:
Crypto Cashback Rewards
Cashback is a benefit that refunds customers a percentage of the cost from a purchase.
An example of this use case is XBO, a crypto exchange that will launch soon. As per information by the exchange, XBO may offer up to 2% cashback on crypto purchases. The cashback amount is based on the user’s status on the company’s 5-tier loyalty program.
Travel Rewards with Crypto
Some travel companies offer discounts based on total purchase value in cryptocurrencies, while others offer rewards points for travel and purchases.
For instance, Loyyal is an online rewards system for customers which uses cryptocurrencies and smart contracts to build and maintain loyalty ecosystems that are secure and private. The top businesses that use Loyyal include Emirates Airways, AccorHotels, and Dubai.
Crypto Staking
Rewards can also be obtained for staking digital assets and cryptocurrencies on crypto exchange platforms, such as Kraken or Nexo. However, staking coins usually requires bond time.
NFTs Appreciation Reward
Non-fungible Tokens (NFTs) are digital assets and cannot be interchanged with other items. NFT frequently represents digital file assets such as art collections and collectables. ORAI Robotics has begun using an NFT reward system.
Credit Card Rewards
Several industries have included cryptocurrencies as a reward, and credit card companies are no exception.
In some cases, credit card users can get digital assets as rewards or cashback that they can use to purchase goods and services.
Conclusion
Crypto reward programs have captured a huge market in a short time. Blockchain technology has emerged as the best mechanism for receiving and redeeming rewards in digital assets.
The quick adoption of cryptocurrencies in reward programs has opened up more opportunities for people willing to invest in these digital assets. Thus, all forms of crypto loyalty programs are highly likely to take over conventional retention and engagement methods.
