Loyalty programs are an influential customer retention tactic that brands use for their own purposes. According to surveys, consumers are more likely to choose brands that reward them for being good customers, and now companies are looking for ways to make their rewards programs more attractive. However, traditional loyalty programs have been facing some challenges from the customer perspective, such as geographical limitations, rules, limited rewards choices, etc.
Today, during the spread of blockchain technology, loyalty programs are undergoing another update, as rewards based on cryptocurrencies begin to enter the market, allowing customers to accumulate assets in one wallet. According to recent statistics, 44% of consumers are interested in receiving loyalty rewards in the form of cryptocurrencies as an alternative to traditional rewards programs. If huge companies start to get involved in this trend, rewarding consumers with digital assets will become the norm.
Crypto rewards are nothing but crypto cash-backs. They are a part of loyalty programs that promise to deliver rewards in cryptocurrencies instead of fiat currency. Blockchain technology is one of the best instruments for ransoming digital rewards in the form of crypto assets.
Although the crypto reward program is not intended to replace traditional loyalty programs, it is starting to be considered as a cost-reducing system intermediary. As blockchain technology is a transparent system, it reduces losses from fraud and errors that are common with traditional reward programs. Consumers are more willing to try new things in rewards programs with the prompt introduction of many new technologies over the past few years.
How does the Crypto Rewards program work?
A user selects a crypto reward coin.
A user gets cashback making payments, or making transactions with their account in the platform.
This cashback is automatically invested in the cryptocurrency selected by a user.
This cryptocurrency is transferred to the user’s crypto pocket, a special account that is created to store the rewards.
As soon as users receive the crypto reward, they can sell, hold, or reinvest the earnings.
A user can change the cryptocurrency for their rewards at any time.
Benefits of Crypto Rewards program
Easy to Integrate
Since crypto rewards are designed around the same comprehensive principle of decentralization that governs cryptocurrencies, they can integrate very easily with existing loyalty programs across multiple stakeholders through smart contracts that bring them all as partners on a blockchain-rewards network.
Attract New Customers
Crypto rewards program is one of the effective methods for attracting customers because the benefits offered by this system will ensure people that they are getting the best offer and that the transactions made are profitable for them.
The use of smart contracts, as well as the unprecedented scale of crypto cashbacks, allows businesses to spend less money on launching a crypto rewards program than on traditional loyalty programs.
Improve Customer Knowledge
This program is especially attractive for those customers who are interested in cryptocurrency investing, but who are afraid or don’t know how to do it. It can close a knowledge gap among new crypto users and relieve the barriers for customers that are exploring crypto for the first time and help them reach their goals.
Retain Customer Loyalty
Crypto rewards program is also used as a tactic to retain old customers so that they are not tempted to switch to competitors. Your old customers, who are already members of your platform, will always feel that they have been given a lot of benefits. That’s why they will continue to use the services you provide.
Increase Customer Activity
Customers will be stimulated to increase the activity within their account to maximize their benefits from using it. This will increase both revenue and recognition of your platform
Why choose Crypto Rewards program integration with Velmie
Velmie development team will provide you with an efficient and cost-effective solution for the implementation of the crypto rewards program, which will allow your business to be up to date and keep up with the world trends, increase the level of competitiveness and attract new customers.
Velmie has extensive experience developing different solutions for blockchain-based businesses and will help you create end-to-end solutions. The wide variety of clients allows us to speak of a wide range of expertise.
Velmie strives to have a similar professional ethic and values with the client to honor their commitment to transparency and quality. This way, our customers and we can better understand each other's needs and collaborate in the most effective way.
As someone not new to the financial industry, Velmie knows how to work with existing specific regulations and best practices that companies must follow, which allows us to avoid mistakes in the product development process
Our current technology stack is robust, innovative and adaptable. And once implemented, we provide our customers with ongoing support and maintenance as part of our services.