Customer loyalty programs form the bedrock of many companies’ success today, e-commerce giants such as Amazon is an ever-growing threat. According to a report published by Kobie Marketing in 2018, a whopping 86% of consumers have joined a loyalty-program to earn points and rewards. Brands such as Starbucks and Targets have specifically designed their programs to not only encourage loyalty, but also increase engagement, spending, and foot traffic at their respective outlets.
Having said that, coupons and loyalty programs are not new marketing concepts. The principle has been in play for well over a century at this point, considering that Coca-Cola offered customers a free glass of the beverage back in the late 1800s, which was redeemable against a handwritten coupon. However, with the advent of technologies such as email, smartphones, and the Internet, these programs have found even more success and methods of engagement.
Blockchain technology can lower the cost of entry for many such companies due to its ability to be highly secure and decentralized. Given that consumers are already accustomed to mobile wallets for accessing and redeeming their reward points, the switch to blockchain-based tokens for existing businesses will most likely be a frictionless experience as well.