Phil explains that the most immediate opportunity for mainstreaming blockchain loyalty is using the major cryptocurrencies to drive deeper member engagement.
Most blockchain loyalty programs which have launched in the last few years have been start-ups who have developed their own cryptotoken. They’ve run successful ICO’s, built a platform and are now busy trying to persuade retailers and members to participate in their program. And for the most part, they’re struggling.
It’s incredibly difficult to sign-up retailers to buy a loyalty currency to reward their customers with. It’s equally hard to convince a customer to become a member. And once the program is up and running, it’s really, really difficult to stimulate ongoing engagement with the program.
Major loyalty programs are successful because they’ve managed to create a highly desirable currency; points and miles.
A brand new cryptotoken can’t start life as highly desirable because no one has heard of it. But there is an alternative.
Companies looking to build a blockchain loyalty program should consider utilising a major cryptocurrency such as Bitcoin as an alternative to creating their own cryptotoken.
Cryptocurrencies can deliver significantly more benefits than points & miles. Popular cryptocurrencies are cost-effective to buy, they can be bought and sold all around the world and they never expire.
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.