In a sales-driven environment, customer loyalty and engagement is a marker of real success.
Without customer retention, a company is bound to fail and hard work put in to attract new business will simply be wasted after a single purchase. The most successful outlets understand how to reward their customers and how to ensure they keep coming back time and again. Many have done this through various loyalty schemes, with the most common practice being a points card of some sort. The premise is simple; every spend earns points which eventually can be exchanged for goods or services.
There are plenty of reward schemes on offer across the United States with a wide range of vendors and today they offer an opportunity to collate information as much as delivering discounts to customers. Many major brands have been proactive in offering good rewards schemes. CVS Pharmacy offers an ExtraCare card, for example, which delivers money off at the end of the year and delivers special sale prices to users. Bed Bath & Beyond’s program is particularly impressive too, as they charge an initial fee and afterwards users can get money off and free shipping.
Across the globe many retailors also have a long tradition of reward schemes. In the UK, the trend for discounts and loyalty schemes has developed from stamps to points rewards schemes and is a huge part of the retail culture of the country. Gala Bingo’s list of the top schemes in the reward programs shows how each one is designed to reward customers by helping them build enough points to purchase products. This had led to a culture where people buy in bulk to accumulate as many points as possible. The idea is not new, back in 1969 in the UK, the Co-op was offering dividend stamps after purchases which could be exchanged for goods of a certain value. That has slowly evolved over time to points managed on apps, with loyalty schemes now not just offering discounts but even different goods and services.
The above examples are losing popularity though in both the US, the UK, and across the world and that’s leading to companies adding value by offering cryptocurrency rewards, rather than the traditional style points. Just like the evolution of stamps to digital cards, users are beginning to yearn for changes. The time taken filling out a form for a loyalty card puts many off, as does the often-complicated method by which they can monitor their rewards. Individual apps for each reward scheme clutter people’s smartphones and eat up memory.
Fintech Magazine explains how Jaguar Land Rover has begun to offer cryptocurrency as a reward scheme where drivers are rewarded for “reporting useful data such as traffic congestion so local authorities can be made aware of issues”. They are then given a cryptocurrency that can be used for other services. And they are not alone is this drive towards using cryptocurrency as a reward. The flexibility of using cryptocurrency is attracting increasing numbers of companies. Chanticleer Holdings. Singapore Airlines and American Express and Boxed are all looking at exploiting blockchain as a reward scheme, breaking new ground in doing so.
The advantages are clear, especially for an end-user. There’s less clutter in terms of physical cards or even numerous app, with more transparency and less scope for fraud. On the retail side, blockchain offers far easier implementation for shops of all sizes, making it attractive to the big players but possibly also to your local stores as it grows in popularity.
Companies are now looking offer their own type of cryptocurrency, for example, Chanticleer Holdings have one called Mobivity Merit which can be redeemed across their brands. Singapore Airlines changed their popular KrisFlyer to KrisPay, a fresh frequent flyer digital wallet which members can use to convert flown miles into digital spending power with other merchants.
Increasing numbers of companies are coming on board with cryptocurrency and as the new decade develops, we’ll see bigger brands helping to make this type of reward far more mainstream.
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