Mobiance, Iran Loyalty Token

Why Is Crypto Loyalty the New Trend?

  • January 9, 2022

According to a recent national Harris Poll, 44% of American people are interested in acquiring digital currencies, such as Ethereum, Bitcoin, and Dogecoin, as an alternative to cashback reward programs from retailers. The current, post-pandemic environment is actually perfect for cryptocurrency’s spread. Consumers quickly adapted to new technologies such as online meetings and cryptocurrencies in the past year, and their desire for change is still growing.

It’s a well-known fact that retaining an existing customer is significantly cheaper than attracting a new one. In today’s ever-competitive markets, loyalty programs can establish a helpful strategy: 62% of customers participating in paid loyalty programs are more likely to spend more on a brand. But what if your firm plans a cryptocurrency cashback program?

A robust motivation

Cashback programs were introduced back in 1986. Discover Financial Services offered a credit card that proposed novel benefits, including a cashback bonus on some purchases.

In the modern era, you’ll see that crypto rewards are the new trend with the execution of blockchain technology in today’s business world. And by tapping into it, brands have a valuable way to connect with both new and existing customers in a decentralized ecosystem.

Crypto rewards are motivations delivered to customers in the form of cryptocurrencies. According to a study, one in 10 people is investing in crypto now, which shows why various companies have started creating their coins to offer a more appealing and attainable loyalty program.

Crypto rewards or points

In recent years, some industries have started using crypto rewards; however, credit card provider companies have taken the lead, offering dissimilar types of rewards. For example, when they use a credit card, they can receive digital money as a reward or points or cashback, which they can later convert to crypto-assets to exchange for other benefits.

Some credit card companies offer cryptocurrencies, such as bitcoin or Ethereum, that customers can use to acquire products or services. Also, numerous stores and services online have enabled payment using cryptos, such as Shopify, Xbox, and Starbucks.

Yet, multiple platforms and programs permit customers to enjoy these benefits. Companies send the loyalty reward to the wallets that offer benefits, such as discounts to new purchases, prizes, or bonuses, with companies and allies using the same cryptocurrency.

Despite the differences between crypto rewards and points in loyalty programs, they both offer benefits, stated by Bryan Pearson. According to a recent study conducted by Tuck Business School, crypto rewards and points motivate customers to complete more purchases when they understand a reward is in place. Furthermore, they show a reward behavior effect, which would help managers evaluate loyalty endeavors and anticipate future results better than just one or the other element. Accordingly, with the aid of these programs, business owners can experience an increase in sales.

Setting the ground for business growth

Companies experience an incredible thrive in sales and reputation when they plan a well-organized loyalty program. A customer is more likely to travel again with the same airline to collect enough reward points for a free flight. When businesses reward customers for buying a product or service, they feel respected. Their connection with the brand gets more robust, incentivizing them to continue purchasing and forget about the competitors.

According to Bryan Pearson, former CEO of LoyaltyOne, The loyalty program’s structure allows companies to record what their customers are consuming, when, in what quantity, and with what frequency. This information is critical when they intend to understand customers’ behavior and create personalized approaches to target and connect with them.

When companies start to treat their customers like a person, not a number, they will witness their business’s growth which signifies the importance of using a solid customer relationship.

To sum up, loyalty programs with crypto rewards prove how companies can leverage market trends and provide their customers with more attractive incentives. In a recent survey, 44% of Americans stated that they are interested in receiving digital currencies as an alternative to conventional cashback reward programs. Through the Mobiance loyalty program ecosystem, brands can reward customers with a crypto token that can be sold in exchanges or redeemed with products or services that other platform members offer.