Adopting a crypto rewards strategy
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Adopting a crypto rewards strategy

Ai Editorial

21st November, 2022

Brands have been evaluating the acceptance of crypto, the level of complexity associated with assimilating cryptocurrency rewards into their loyalty programs, letting a member earn, say bitcoin, as a loyalty currency, and so on.  So how are #rewards programs gearing up for the digital future?

A study has indicated that multi-merchant coalitions, financial services and entertainment brands are most likely to adopt crypto rewards in the future.

The Delphi Report 2022 has explained why these vertical loyalty markets are expected to take a plunge earlier than others, say grocery or gas segments. In case of financial services, it was pointed out that #crypto can replace cashback and also “can replace or supplement the typical redemption catalog choices found in most credit/debit rewards programs”. Another important finding: multi-merchant loyalty programs “will likely wait to see how successful crypto rewards will catch on at the FI and Travel rewards level”. Specialists have also evaluated aspects whether crypto provides any type of emotional connection or not, the significance of effectively communicating to program members currencies’ safety, the underlying usability and so on.

Utility

As we go deeper into what members think about their loyalty currency and what they do can with their point or miles, certain brands are trying to overcome a perception that redemption awards or benefits, specifically for travel, aren’t that tough to achieve. Loyalty commerce specialist Bakkt asserts that a crypto engagement strategy is apt, since offering the ability for customers to accrue rewards in bitcoin or ether allows them to consolidate their rewards from multiple programs into a single digital wallet.

Considering the state of affairs, it must be underlined that many more proof points need to surface for consumers to redeem loyalty points for crypto or a credit card that lets one earn crypto is the one to go for. There is also a need to understand what consumers look for digital asset management, and how likely they are to trust an organization for making crypto purchasing decisions.

By Ritesh Gupta, Ai Events

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