With some companies now accepting cryptocurrency, will loyalty programs be next?

Since 2020 we have seen many industries shift.  The world adjusted to major lifestyle changes, and more people began to welcome developments in the tech industry. One such development is the introduction of digital currencies. 

Retailers have already started to adopt this technology as a form of payment: Whole Foods was one of the first major outlets to start accepting crypto in the US in 2019. Starbucks followed suit, working with a 3rd party payment app to allow customers to buy their morning coffee with Bitcoin. Here at White Label Loyalty, we believe that the future of loyalty is centered around tech. So how could the worlds of crypto and loyalty work together? 

According to The Harris Poll, at least 44% of Americans have expressed an interest in cryptocurrencies as a reward for their loyalty to retailers, instead of the more traditional cash-back system.  If crypto does become the currency of the future, it’s only a matter of time until it spills over into the rewards industry. But are businesses ready for that? 

Millennial consumers are even more keen, with over half of them feeling enthusiastic about blockchain technology and it’s potential to replace conventional reward systems.

The problem is, many of the current loyalty programs out there are falling at the first hurdle. This is because businesses just don’t have the right data, can’t personalise their rewards offerings or are not flexible enough. If there’s any chance of loyalty programs successfully integrating with cryptocurrency rewards in the future, retailers need to innovate and be flexible with their rewards programs so they can attract audiences who want to engage with digital currencies. Here are the key elements of loyalty programs that retailers need to nail today:

DATA-DRIVEN

Loyalty programs should be based on solid data, not guesswork. It’s important to arm yourself with as much data as possible: payment data, online behaviour, demographic data and more. Our system provides you with meaningful insights - including custom queries and charts - so you can be sure your decisions are backed up by solid customer information.

PERSONALISATION

It’s more important than ever to make sure you are giving your customers more of what they actually want. If you want to increase engagement with your customer base, our rewards software can help. It allows you to unlock insights, such as individual points balances, available rewards and earning opportunities, then interact with them using personalised loyalty emails and onsite notifications.

EVENT-BASED

Many businesses currently only reward transactions, but this method has become outdated. With our loyalty platform’s event-based architecture, you can reward any kind of customer action. This could include referring a friend, providing feedback or any other kind of custom event. Our flexible model allows you to take your loyalty program beyond just rewarding transactions.

So what does the future hold?

Cryptocurrency and loyalty is very much in its infancy, but could gain more traction in the coming years, as more retailers re-evaluate their rewards programs in an attempt to win back loyal customers.

However, with regulations on digital currencies constantly changing, the future of cryptocurrency and loyalty is uncertain. That’s why it’s more important than ever to make sure you have a loyalty program that works today. By nailing your rewards program now, you’ll be more prepared to adjust to potential industry changes in the future.  Customer expectations are high – make sure you have a system based around data, personalisation and flexible rewards. 

Get in touch with us or book a free demo to see how we can help you build a future-proof loyalty program for your business, no matter what industry you’re in

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Helen Walker

Helen is our Creative & Content Marketing Executive. She shares valuable information about the Future of Loyalty and will keep you up to date on the latest industry insights...

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