Loyalty programs are considered as one of the best ways to attract and retain customers. Through these programs, companies offer bonuses, special discounts, and attractive incentives to retain their existing customers. Loyalty programs are also known as point programs or rewards programs.
For example, XBO.com, a cryptocurrency exchange which is launching soon, is offering advanced lifetime loyalty program benefits to the first 10,000 users that sign up during its early access period. Early signups automatically shoot up to the Gold tier and receive better rates on their trades, 0.1% cashback, up to 2 free crypto and fiat withdrawals a month, a randomized amount of free tokens and a customized Gold XBO card. The early birds even get a chance to participate in the draw for a limited number of Black Diamond tier memberships.
As cryptocurrency will play a significant role in the future of finance, crypto loyalty programs will play a vital role in its success. Investors are already familiar with reward programs.
Investors often search for: Do crypto loyalty programs really work?
So, if that describes you, continue reading this article until the end to learn about crypto loyalty programs and how they actually work.
What Are Crypto Loyalty Programs?
In simple terms, crypto loyalty programs are marketing strategies that reward clients who buy or engage with the companies on a regular basis.
These rewards can be anything from crypto cashback rewards, crypto staking, credit card rewards, and NFT appreciation rewards. When you sign up or make a repeat purchase on a crypto exchange, you may get free tokens which are added to your investment portfolio.
Do Crypto Loyalty Programs Really Work?
With the rise in cryptocurrency's popularity, many brands have started adopting digital assets for their rewards programs.
There is no denying that crypto loyalty programs work well for companies, but what about the customers?
The free tokens offered by the exchanges for actions on the platform act as an incentive. Holding tokens from an exchange develops aspects of community. Users feel invested in the actual platform, care about its well-being and are thus encouraged to use it again.
Top Crypto Loyalty Program Schemes:
Let’s have a look at the top 5 popular types of crypto loyalty programs:
Crypto Cashback Rewards:
A crypto cashback reward is a type of loyalty scheme in which customers get rewards for shopping with a particular retailer.
Cashback rewards include offering a percentage of a crypto token when a user makes a purchase on the company’s platform.
For instance, crypto.com's 'Pay Rewards' services let you receive cashback in crypto.com's own native coin, 'CRO.'
Credit Card Rewards:
A relatively recent development in reward schemes is cashback for credit card purchases in the form of crypto tokens.
Some of the major crypto credit cards include BREX 30 Card, Gemini Credit Card, Crypto.com Visa Card, SoFi Credit Card, Tomo Credit Card, Upgrade Bitcoin Reward Visa, and Venmo Credit Card.
Crypto Staking:
Crypto staking is a type of reward program in which a user holds their crypto assets in an exchange to support the blockchain network's operations.
When a user decides to stake their crypto coin, they are providing their computing power to secure the network and validate the transactions.
In return for crypto staking, the customers receive a favorable interest rate.
It is up to the investor whether to stake their crypto assets.
Soon-to-be-launched crypto exchange, XBO.com, has already announced generous rewards on crypto staking.
Travel Crypto Rewards:
Several travel companies such as TravelbyBit also offer rewards in the form of crypto tokens.
The loyalty program is exclusively for its customers and allows them to earn up to 5% rewards in crypto coins when booking eligible trips.
NFTs Appreciation Rewards:
Non-fungible Tokens (NFTs) are digital assets that are unique and interchangeable. Several companies have started to reward their clients through NFTs appreciation rewards.
These rewards can be monetized after a specific period.
What are the Benefits of Crypto Loyalty Programs?
Encourage Customers to Buy Again:
Cryptocurrencies are trending these days, so giving rewards in the form of these digital assets will attract crypto enthusiasts.
When a company rewards its existing customers through crypto loyalty programs, they are indirectly encouraging them to repeat purchases from them.
Everyone likes to get free stuff. So, when a customer gets something extra, they are likely to come back and spend more. Repeat customers are extremely valuable for business.
Differentiate Yourself from Your Competitors:
Whichever sector you operate in, your reward scheme can be used to set your company apart from the competition. Due to the popularity of crypto, offering loyalty rewards in the form of crypto tokens might give you the lead over your competitors.Improve Brand Reputation:
Creating crypto loyalty programs that offer exciting deals and rewards can help your company improve its brand reputation. Repeat customers enhance your brand awareness and reputation.
Boost Profits:
The primary aim of launching new crypto loyalty programs is to boost profits. By regularly offering rewards, deals, and discounts, the customer will feel inclined to shop with you.
By entering the loyalty programs, the customer may buy more than they would have otherwise.
Customer Retention:
The primary motive of any loyalty program is to retain existing customer by offering them rewards for their repeat purchases.
People are strongly influenced by referrals from family and friends and loyal customers are the best source of referrals and new business.
Customers who came through a referral or loyalty membership generally have a much shorter (and cost-effective) sales cycle.
What Are the Types of Crypto Loyalty Programs?
Point Programs:
These are the most common types of loyalty programs based on a simple concept: Spend more to earn more.
Every time a customer spends, they get a certain number of crypto tokens depending on the size of their purchase.
Tiered Program:
A tiered reward program offers incrementally better rewards based on the level of customer loyalty.
Partnered Programs:
A super-effective way to retain the customers. It aids the growth of your business by creating new relationships.
Paid Programs:
Customers join a company’s VIP member club for a monthly or yearly fee, in exchange of exclusive services, discounts, or unique experiences.
Loyalty Programs Based on Spending:
Customers receive loyalty rewards for the amount they spend. This type of program improves transaction quantities while lowering churn rates.
The Bottom Line:
We hope you have gained a better understanding of crypto loyalty programs and their efficacy. Crypto loyalty programs have opened new gateways of success for both businesses and customers.
Date Of Update: 03 July 2022, 16:04
