To understand the significant opportunity for cryptocurrencies to be used to power loyalty programs, it is essential to review the history of different currencies within loyalty programs.
It is clear that major currencies of the day tend to be swapped out periodically for something different. From Egyptian tokens to copper tokens to tickets to stamps and then to points and miles; loyalty currencies rise and dominate and are then replaced by something more effective. With the rise of cryptocurrencies, can we now expect points and miles to follow in the path of copper tokens, tickets and stamps?
There is yet to be a blockchain loyalty program succeed in operating at scale, however there is clear disillusionment and homogeonisation of current loyalty programs and the potential for disruption by cryptocurrencies is absolutely there.
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.