Phil discusses the core difference between blockchain loyalty programs & points-based loyalty programs. It’s all about SCARCITY.
This month, Phil explains the question of scarcity and how this essentialises the true difference between a points-based loyalty program (like those operated by airlines, supermarkets and banks) and a blockchain loyalty program.
He uses a simple supply and demand graph to demonstrate what happens to the value of points vs cryptocurrency as demand increases.
If a blockchain loyalty program can build out a large enough member and merchant base to create meaningful demand for their cryptotoken, this type of program design shows a lot of promise. As the demand for the token increases, the price also increases, gaining momentum and increasing desire for the token even further.
If you would like more detail around this concept, read Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies, by Phillip Shelper.
Philip Shelper is a loyalty management consultant based in Sydney, Australia who obsesses about everything to do with loyalty and rewards. His company Loyalty & Reward Co are a leading loyalty consulting firm.
Phil is the author of Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies. Buy the book.
www.blockchainloyalty.io is a global resource centre for everything blockchain loyalty.