Why is it important that companies offer crypto rewards to customers that have maintained their loyalty?
One of the most potent ways gaining customers loyalty and get them coming back is to offer them some sort of reward programs for their purchases. In fact about 61% of SMBs report that more than half of their revenue comes from repeat customers. And the major attraction for these ones that return is reward programs they receive for their purchases. Unfortunately, not all customers are feeling the reward programmes offered to them. I think the challenge is that some of the reward programs offered by some stores aren’t addressing the needs of the customers.
So you have a situation where some customers don’t even claim their reward points. But what if companies begin to offer crypto rewards to their loyal customers? Would crypto rewards to customers that are loyal to the companies help companies achieve their goals for offering reward programs in the first place? Research says, yes. Indicators shows that customers will be more prone to purchase if they know that every time they make a significant purchase from their favorite stores that they will automatically get some coins.
But before we go ahead to explore the reasons companies should offer crypto rewards to loyal customers let’s first what the rise in crypto rewards could mean for companies.
What the rise in crypto rewards means for companies
Rewards programs have long been a way for companies to generate customer loyalty. From grocery stores offering discounts at gas stations, to clothing retailers providing gift certificates that one can redeem, to even financial institutions offering bonus offers on certain accounts companies have been quite creative in how they have kept customers coming back for more. But one thing is sure, each time a company offers a reward they want the customer back.
However, these types of rewards are becoming boring and unattractive to many customers. Like we noted above some customers no longer claim theirs. However, everyone is excited by crypto these days. Who doesn’t want to acquire some coins one way or the other? So crypto rewards offer something new and unique that gets the attention of online shoppers and companies should know it.
“Crypto rewards can be a great way to build customer loyalty. Bitcoin is now worth over a trillion dollars. There has never been more interest in crypto assets than we have it today. If as a business you wish to find more innovative ways to attract and retain customers, crypto rewards could be the perfect way to achieve that.
Companies that Launched Crypto Rewards to Loyal Customers
A few companies already started offering crypto rewards since 2021 in particular. And guess what? They are already enjoying big dividends from such crypto reward programs. In fact, Mike Ross Kane, Co-Founder and CEO of Hydrogen, revealed that multiple companies have launched crypto rewards programs in 2021 and amassed waitlists of 250,000 or more. And I think that is an incredible number especially for small businesses.
And I have always maintained that in all you do, it makes absolute sense to seek first mover advantage. So imagine your company being among the early adopters of this.
Frequently Asked Questions
What is crypto rewards?
Crypto rewards is a sort of loyalty reward program for customers that gives free crypto coins to loyal customers as a way of saying 'thank you for the patronage' and at the sme time enticing the customers to come back.
Why do companies strive for customers loyalty?
Customer loyalty increases sales and reduces marketing cost thereby increasing profits.
Does Crypto Reward Programs have any advantage?
Yes. People are so used to the traditional reward programs offered by companies. But today, everyone is excited about crypto and it can be a very creative way of attracting and retaining more customers.
Why do companies use loyalty program in the first place?
The major reason for creating a loyalty program is to improve their customers loyalty. Offering discounts or free products to customers ensures that they will continue to come back to your company.
Which companies currently offers loyalty programms?
- Shake Shack
- Mastercard
- Visa
- Coinbase
Key considerations in launching a crypto rewards programs
But do you just go ahead and launch crypto rewards? Is crypto rewards right for every company? Should one just go ahead and launch crypto reward for loyal customers just for the fun of it? I think they are basic considerations that must be factored in before launching a crypto reward program for your brand.
1. Tailor Your Crypto Rewards Programs to Your brand and the Customers
If your business plan to offer crypto reward it is important to tailor the crypto rewards programs to your brand. It should also be tailored to your customers. You don’t just copy what other companies are offering without considering the uniqueness of your brand and the need of your customers. For example, you could offer crypto rewards where users earn their preferred form of crypto for each dollar spent at your store. It is even possible to go as far as creating your own cryptocurrency. Yes, it is not a rocket science to create one. And some companies actually do that already. So with that, such coins are used exclusively on items on your store or site.”
2. Accept Crypto for Everyday Payments?
You can’t be offering crypto rewards to customers and they can’t use it to make payment on the same site or store. They will see it as a scam. They will consider the coins as worthless since even you are unwilling to accept it.
So if you plan to offer a crypto rewards program you should also look into the possibility of accepting cryptocurrency payments.This will be a clar prove that crypto is a fundamental part of your business. They will be convinced that your crypto reward is not just for seeking attention. Many people do this, but you should avoid it.
Even if your current customer base doesn’t have significant demand for making crypto payments, the more payment options you provide, the easier it is for site visitors to complete their checkout.
Fortunately, you don’t have to be so techy to accept crypto payments and implement a crypto rewards system.
3. The Volatile Nature of Cryptos
The next and perhaps most important thing to consider in creating or implementing crypto rewards program for your brand is the general volatile nature of cryptocurrency. I believe you must be aware of this already.
For example, has sold for as high as over $60,000, and as low as $5,000 within a space of months. Some other cryptos can even be more volatile. We have seen some of them become completely worthless within months.
For this reaon, any business who intends to offer crypto reward as appealing as it may be, should trade with utmost caution. Such companies should be careful in how they market their crypto rewards program to customers. They need to ensure they communicate clearly to a point where customers are aware of the risk of holding crypto assets.
It is recommend that any company speak with qualified legal and accounting professionals before offering crypto rewards. Why this is important is that if you don’t you might end up been trapped. Customers may feel like they were cheated or suffered a loss from your rewards program if the price of crypto dip.
Are crypto rewards in your business’ future?
I understand the fact that not every customer will be immediately excited by the prospect of getting crypto rewards. Yet it is definitely worth a try at the very least. Becoming an early adopter of this feature could give your company greater access to a tech-savvy base with high spending power. Even if crypto doesn’t seem to be a great fit initially, it’s important to consider how this type of program could help you target a new audience.
One thing is certain: more and more e-commerce brands will undoubtedly be using crypto rewards programs as a further step toward fully embracing cryptocurrency.
Will you take advantage of this today?
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Five Reasons to Give Gifts of Bitcoin (And Other Crypto)
1. You are almost late to the party if you are just starting now
Most companies as we will see in the next section are already offering crypto rewards to their loyal customers. Yes, you will not be the first if you start today.
Though some major companies may announce that they’re considering it, but chances are they are doing it already. After all, Mastercard already announced it’s integrating cryptocurrency into some reward programs. VISA was the first company to offer Bitcoin rewards with a credit card.
SoFi’s credit card is being marketed as a card that not only offers cashback, but also one that helps you invest, using cryptocurrency.
2. People are already using crypto to buy everything today
From cars to electronics to video games and even in restaurants Crypto is been accepted as a means of payment. A major breakthrough about about this came in March 2021 when Elon Musk announced that Tesla will start accepting Crypto for their cars. If people can pay for electric cars with bitcoin or dogecoin or ethereum, what is too big then?
You can equally use crypto to buy goodies from the Xbox network or even a hot cup of Starbucks coffee. Many stores and platforms now work with cryptocurrency. They do this because they know it’s already mainstream. And younger customers are also more willing to pay their expenses in cryptocurrency.
It doesn’t make much sense to hold out a while longer, considering that active business companies would be losing if they waited too long.
3. Americans aren’t as afraid of crypto as everyone thinks they are
A recent Harris Poll in 2021 reported that not only have 9 out of 10 people heard about cryptocurrency, but up to 44% would be very interested in earning crypto as part of a rewards program. Almost a third of Americans also agreed that crypto could be the future of finance
4. The worst-case scenario is never going to happen
A few years ago, big finance was telling us not to bank on the cryptocurrency. It was too unstable and bound to bottom out. But then 2020 came and went. An economic crash wasn’t enough to destroy the value of the virtual coin. In fact 2021 was one of the best years for crypto investors.
Yes, it did fluctuate at some point. Bitcoin for example, went down as low as $5,000 per coin. But now in 2022, it’s approximately $40,000 per coin. It’s proven over time to be a commodity, comparable to gold and silver, at least in predictable price.
Countries around the world are betting on cryptocurrency, including countries in Africa. Nigeria, the most populous black nation on earth for example doing very well on crypto. According to our survey conducted in early 2022, 33.4 million Nigerians, which accounts for 35 per cent of the population aged 18 to 60, currently own or have traded cryptocurrencies over the past six months.
Also in India over 100 million people has invested in crypto. United States has 27 million while Russia, Brazil, and others are also coming up. If the entire world is making a play for bitcoin, trying to cast doubt on the coin’s long-term value would be naive.
5. Because decentralization is on the rise
People have stopped talking about Web 2.0…it’s practically the past! But now everyone’s excited about Web3 – the decentralized web of tomorrow.
Not only are venture capital firms investing billions in crypto, as this New York Times article suggests, but individuals are investing their individual wealth, talent, and energy into a number of blockchain projects.
Reddit, Twitter, and Facebook have all seen the future and are experimenting with their own web3 technologies.
Facebook famously rebranded itself as Meta, and now anticipates a digital but immersive world – not necessarily owned by any one company – that allows users to independently perform tasks in various metaverses – and earn crypto tokens in doing so
NFTs are a literal example of Web3 and the internet’s response, millions of dollars traded, has been nothing short of jaw-dropping.
Give Customers What They Want – Crypto!
The popularity of cryptocurrency is enough to justify any company’s investment in a blockchain rewards program. The only ones who aren’t on board yet are the ones that don’t understand the blockchain, and how easy it is to get started collecting and trading.
If more companies get on board to help bring their customers into the 21st century and understand the potential for investment, appreciation for a modern rewards program will only grow.
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Conclusion on Why Companies Should Give Crypto Rewards to Their Customers
As you can see crypto rewards is not entirely new. Other companies are already adopting it, and if you are still thinking about it it is almost late. So it will not make any sense to linger further.
If you have more questions on crypto kindly send us your questions. And for more crypto related posts just keep visiting here.