{"id":543522,"date":"2023-01-25T16:00:00","date_gmt":"2023-01-25T13:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-web3-could-revolutionize-loyalty-programs\/"},"modified":"2023-01-25T16:00:00","modified_gmt":"2023-01-25T13:00:00","slug":"how-web3-could-revolutionize-loyalty-programs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/","title":{"rendered":"# How Web3 could revolutionize loyalty programs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40afe426693\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40afe426693\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#%E2%80%9D_How_Web3_could_revolutionize_loyalty_programs_%E2%80%9C\" >&#8221; How Web3 could revolutionize loyalty programs &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#What_are_loyalty_points\" >What are loyalty points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#How_Web3_technologies_can_make_loyalty_programs_better\" >How Web3 technologies can make loyalty programs better<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Management_of_multiple_loyalty_programs\" >Management of multiple loyalty programs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Attract_a_younger_audience\" >Attract a younger audience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Expand_reward_options\" >Expand reward options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Experiential_loyalty\" >Experiential loyalty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Start_as_a_complimentary_loyalty_program_rather_than_a_substitute\" >Start as a complimentary loyalty program rather than a substitute<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Prioritize_user_experience\" >Prioritize user experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Manage_trading_and_speculation\" >Manage trading and speculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/buradabiliyorum.com\/en\/how-web3-could-revolutionize-loyalty-programs\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_How_Web3_could_revolutionize_loyalty_programs_%E2%80%9C\"><\/span>&#8221; How Web3 could revolutionize loyalty programs &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvZGYxNzYwN2ItYTQwMC00Y2M4LTg5ZjUtYWFiZDk0NGUxZWIxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>Attracting and retaining customers have long been one of the major headaches for businesses all over the world. Companies use several ways to get these customers, and one such way is loyalty programs. These programs have been quite effective in retaining customers. But loyalty programs are not perfect. They have challenges, such as geographical limitations, limited reward options, complex redemptions, etc.<\/p>\n<p>All these issues affect the overall effectiveness of loyalty programs. But Web3 and blockchain technologies like cryptocurrencies and non-fungible tokens (NFTs) can solve these challenges and redefine loyalty programs. Let\u2019s discuss how.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_loyalty_points\"><\/span><strong>What are loyalty points<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Loyalty points are incentive programs businesses use to encourage customers to spend on their products. Users get more points based on how much they spend, which can be exchanged for more products or better quality services with the company. Loyalty programs are quite common, with everyone from airline companies and hotels to Starbucks offering one form or the other. Even credit card issuers now offer loyalty points.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_Web3_technologies_can_make_loyalty_programs_better\"><\/span><strong>How Web3 technologies can make loyalty programs better<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Advocates of Web3 technologies are usually quick to point out its revolutionary capabilities for almost every industry. While skeptics can question this in other areas, blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> has clear <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications for loyalty programs. These include:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Management_of_multiple_loyalty_programs\"><\/span><strong>Management of multiple loyalty programs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the reasons for the inefficiency of loyalty programs is the low redemption rates on the part of customers. This is not essentially the customer\u2019s fault. One brand can have several loyalty programs, making management difficult for customers and users. Then, loyalty programs are complex, forcing customers to do a lot of mental mathematics before redeeming their points. With blockchain technology, it could be possible for customers to redeem points in real time and even combine multiple loyalty programs into one.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Attract_a_younger_audience\"><\/span><strong>Attract a younger audience<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While the existing loyalty programs might work for the older generation, millennials and younger generations are increasingly becoming the major customer base for businesses. Novel developments such as Web3 technologies will appeal more to these age groups. For example, Gen-Z has an interest and buying <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ypulse.com\/article\/2022\/04\/11\/heres-how-many-gen-z-millennials-have-bought-crypto-nfts\/\">experience<\/a> in NFTs, followed by millennials. Thus, offering loyalty programs based on these technologies would likely attract and retain this user base.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Expand_reward_options\"><\/span><strong>Expand reward options<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most loyalty programs offer points that users can only redeem and use on products or services of the company. While this encourages customers to keep patronizing the business, it can limit user experience. Incorporating blockchain technology could change this, providing multiple reward options for rewards. For example, points could be converted into cryptocurrencies, and there could be digital collectibles as rewards.<\/p>\n<p class=\"has-black-color has-text-color has-background\" style=\"background-color: #fabf2c;padding: 20px 30px\">Join the community where you can transform the future. Cointelegraph Innovation Circle brings blockchain technology leaders together to connect, collaborate and publish.\u00a0<strong>Apply today<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Experiential_loyalty\"><\/span><strong>Experiential loyalty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Integrating Web3 technology for loyalty programs could also lead to innovations, such as experiential loyalty. This can improve customer engagement with the brand by rewarding them as a customer and making them a member of the brand community. Experiential loyalty is an immersive form of a loyalty program that\u2019s possible with blockchain where users don\u2019t just get points but also get digital collectibles. It gamifies the experience. This is already <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dappradar.com\/blog\/what-is-move-to-earn\">playing<\/a> out with several move-to-earn platforms, and while it might take years, it will rebrand the entire loyalty program.<\/p>\n<p>However, any impact Web3 technologies will have on loyalty programs will depend on the implementation. Beyond the marketing and hype, there needs to be a deliberate approach. Such an approach should adopt the following recommendations to be effective:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Start_as_a_complimentary_loyalty_program_rather_than_a_substitute\"><\/span><strong>Start as a complimentary loyalty program rather than a substitute<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One mistake many companies are making is forcing blockchain-based loyalty programs outright on their customers. While blockchain tech has seen a lot of adoption in the last few years, it is still not yet completely mainstream. For it to work, it is best when it is an additive loyalty program to the existing one, giving users the option to volunteer adoption and allowing businesses to slowly integrate Web3 into their business since there is no im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te pressure on the program to succeed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Prioritize_user_experience\"><\/span><strong>Prioritize user experience<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A major issue with any implementation of blockchain technologies is the user experience. Most user interfaces fail to bridge the gap between blockchain technology and the old-fashioned internet. This has limited the adoption of blockchain technology and could also affect any loyalty program that chooses to use it. But it is possible to design a great user interface that does away with the technicalities of blockchain technology such that users won\u2019t even know they are interacting with the technology. This is what I call \u201cWeb 2.5,\u201d where users are participating in Web3 but have a Web2 interface. Gradually, they are educated and introduced to more advanced Web3 concepts and applications.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Manage_trading_and_speculation\"><\/span><strong>Manage trading and speculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Any business that includes NFTs as part of its loyalty program will likely include the ability to trade such NFTs. However, trading NFTs can easily attract speculators, which can affect the experience for the organic users, who are the actual customers of the business. Thus, the business would have to design the reward program to target the right customers and disincentivize or at least minimize the impact of such speculation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Loyalty programs are great, and many consumers opt for certain brands because of these programs. But they can get better, and blockchain technology can improve. Unsurprisingly, many brands already recognize this and are taking advantage. However, there is still a long way to go before they become mainstream, and it is important to adopt the right approach to make any impact sustainable.<\/p>\n<p><em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/circle.cointelegraph.com\/app\/admin\/articles\/edit\/twitter.com\/briandevans\">Brian D. Evans<\/a>\u00a0is a Web3 investor, an Inc. 500 Entrepreneur and the founder of both BDE Ventures and ReBlock Ventures.\u00a0<\/em><\/p>\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\" style=\"flex-basis:100%\">\n<hr class=\"wp-block-separator\"><\/div>\n<\/p><\/div>\n<p><em>This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.<\/em><\/p>\n<p><em><strong>Learn more about Cointelegraph Innovation Circle and see if you qualify to join<\/strong><\/em><\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Companies use several ways to get these customers, and one such way is loyalty programs. These programs have been quite effective in retaining customers. But loyalty programs are not&#8230;<\/p>\n","protected":false},"author":1,"featured_media":543523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/df17607b-a400-4cc8-89f5-aabd944e1eb1.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-543522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=543522"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543522\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/543523"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=543522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=543522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=543522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}