It’s a well-known fact that retaining an existing customer is way cheaper than attracting a new one. In today’s ever-competitive landscape, loyalty programs can prove a useful strategy: 62% of customers participating in paid loyalty programs are more likely to spend more on a brand. But what if you made crypto cashback a part of the fun?
Cashback programs are nothing new – they date back to 1986. Back then, Discover Financial Services launched a credit card that offered novel benefits, including a cashback bonus on certain purchases.
Skip to the modern-day, and you’ll see that with the implementation of blockchain technology in today’s business world, crypto cashback and crypto rewards have become the new trend. And by tapping into it, brands can find yet another way to connect with both new and existing customers.
As the name suggests, crypto rewards or cashback are incentives delivered to customers in the form of cryptocurrencies. There’s no wonder why diverse companies have started creating their own coin to offer a more appealing and accessible loyalty program. With one in 10 people investing in crypto now, the hype is real.
One company that’s already implementing such a strategy is Chanticleer Holdings, a fast-food chain corporation. A customer that eats at one of the franchised branches receives a type of cryptocurrency called Mobivity Merit. These can be redeemed through the different restaurant chains with no fraud concerns.
On the other hand, TripCandy, an accommodation booking platform, built its entire business problem around crypto cashback. Every time a customer books a trip, they can earn Candy tokens. This coin allows them to get further discounts or even additional trips, turning traveling into a promising investment.
Although different industries have started using crypto rewards, credit cards have taken the lead, coming with slightly different types of rewards. For example, when they use a credit card, they can receive digital currency as a reward or earn points or cashback, which they can later convert to cryptocurrency to exchange for other benefits.
Some credit cards offer cryptocurrencies, such as bitcoin or Ethereum, that can be used to acquire fast food, art, electronic equipment, or even cars. Also, numerous stores and services online have enabled this payment channel, like Shopify, Xbox, and Starbucks.
However, there are multiple platforms and programs available that allow customers to enjoy these benefits. In some cases, customers with crypto rewards have access to something similar to a virtual wallet. These wallets offer benefits, such as discounts to new purchases, prizes, or rewards, with companies and allies using the same cryptocurrency.
Despite the differences between crypto rewards and points in loyalty programs, they both offer benefits. According to a recent study conducted by Tuck School of Business at Dartmouth, University of Colorado’s Leeds School of Business, Graduate School of Business, and University of Pittsburgh’s profile Katz School, crypto rewards and points, incentivize customers to complete more purchases once there’s a reward in place, show a reward behavior effect, would help managers evaluate loyalty initiatives and predict future results better than if there is just one or the other component. Therefore, with the help of these programs, business owners can experience an increase in sales.
A well-organized loyalty program can help companies grow in unimaginable ways. We can start by mentioning how businesses will improve their brand reputation, just to say the least. A customer is more likely to travel again with the same airline they collected enough miles to get a free trip. When customers buy a product or service and are rewarded for it, they feel appreciated and connected to the brand, incentivizing them to continue purchasing.
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 vital to understanding customers’ behavior and creating personalized strategies to target and connect with them.
With a market full of infinite possibilities, the way business communicates and relates with customers can really go a long way. 84% of customers say being treated like a person, not a number, is very important to winning their business, adding to the importance of building and strengthening customer relationships.
In short, loyalty programs with crypto rewards prove how companies can leverage market trends and provide their customers with more appealing incentives. Right now, 44% of Americans are interested in receiving digital currencies as an alternative to traditional cash-back reward programs.
Considering all of these, establishing a solid loyalty program through crypto rewards, for example, is a successful customer engagement strategy. As everyone knows, businesses with more engagement generate more customer satisfaction, translating to greater sales, using a crypto cashback program.