Loyalty Blogs

Leveraging The Power of Crypto Loyalty Programs to Build a Loyal Community

  • Posted on May 27, 2024 by Robert
  • Reading time about 6 minutes
Crypto Loyalty Programs

Gone are the days when traditional loyalty programs used to work and fulfill customer expectations. With major shifts and innovations in loyalty programs, it’s high time to upgrade your program and offer digital assets like crypto rewards. By using crypto-based reward strategies, businesses can boost customer loyalty and drive repeat business in the crypto niche.

Customizing loyalty programs to match their customers’ specific needs and tastes has been made possible with Blockchain and distributed Ledger technology that helps to personalize discounts and offer loyalty tokens. In this blog, we will learn about the essence of Crypto Loyalty Programs and the benefits they offer for business growth.

Understanding the Basics of the Crypto Rewards Program

Crypto rewards can be defined as the incentives given to customers for engaging in cryptocurrency-related activities. These rewards have goals such as encouraging customer engagement, endorsing platforms, or educating the general public about crypto assets. Crypto rewards in loyalty campaigns are given in the form of crypto cashback where customers get compensation in crypto rather than classic currency.

By integrating Blockchain Loyalty Technology and smart contracts, brands, sellers, managers, and system administrators can easily collaborate and participate in these programs, saving costs and providing the capability to offer more crypto cashback. What makes a crypto loyalty program different from traditional loyalty schemes is that it doesn’t restrict users to particular brands. Leveraging the transparency of public ledger technology, crypto programs offer cryptocurrency tokens as rewards, which hold tangible value and can be used in various industries and applications.

Main Offerings to Customers Through Crypto Loyalty Initiatives

Many crypto organizations make use of an advanced system of crypto bonuses and user rewards based on different activities and other aspects that cater to the target audience’s behavior. Here are the main offerings that customers get from crypto loyalty programs.

1. DeFi Rewards

DeFi, as the name suggests is decentralized finance that uses advanced technology to remove third parties and financial institutions. DeFi rewards are the form of rewards that customers earn by engaging in peer-to-peer financial activities facilitated by decentralized apps (DApps).

DeFi rewards can be earned through multiple ways and one of them is lending where one can earn interest on the transaction by lending cryptocurrency to borrowers. This earning opportunity works on decentralised lending platforms enabling users to fund individual loans or pool assets with other lenders to reduce risks.

2. Crypto Airdrops

Crypto airdrops act as a promotional strategy that developers use to distribute a particular amount of free tokens or coins to the holders of a particular cryptocurrency. The main motive of these airdrops is to keep potential users engaged and raise awareness to encourage trading activity for a newly launched cryptocurrency.

To participate in an airdropping crypto event, one must hold a minimum quantity of designated cryptocurrency in a digital wallet. And the other way is where individuals are asked to complete specific tasks like creating an account on the project’s platform. Though airdrops can be an attractive way to accumulate crypto assets, they have risks and considerations, which means there is a possibility of encountering scams to gather personal information.

3. Crypto Cashback

One of the common reward types is crypto cashback where users are granted a small quantity of crypto money as an added advantage when they make purchases with the brand. It is somewhat similar to traditional credit card cashback but here users make use of reliable crypto credit cards or payment platforms to settle payments for products and services.

Rather than receiving points or traditional currency as a reward, users will receive a percentage of their spending through crypto coins like Bitcoin, Ethereum and others. These earnings will be deposited in a digital wallet which contributes to the accumulation of more cryptocurrency without the need to purchase it directly.

4. Staking

Stacking can be defined as a loyalty strategy of gaining rewards in crypto by holding specific virtual coins in a digital wallet. Here, users will stack coins, which are temporarily locked for contributing to the network operations and validating transactions. Over time, the user will receive additional tokens as rewards.

Staking is effective mainly in systems using a proof-of-stake (PoS) protocol. The likelihood of being selected to validate transactions is directly proportional to the number of coins a participant is having. This encourages customers to stake more coins and support the network to enhance their potential earnings.

5. Crypto Faucets

The platforms or applications that reward users with small quantities of cryptocurrencies without any cost are called Crypto faucets. One way to earn digital assets is by completing simple tasks like captcha tests. The main motive of these faucets is to boost user participation and give insights for a better understanding of cryptocurrency.

These faucets get funding from advertisements and sponsorships or may have affiliations with big crypto exchanges or platforms that use faucets for marketing. Though the one-time earnings from crypto faucets may be insignificant, many users can take advantage of multiple crypto faucets to accumulate more cryptocurrency in their digital wallets.

6. Crypto Rebates

The last reward type is crypto rebates where certain crypto platforms and exchanges provide crypto rebates as cashback or reward programs. These rebates help users gain a percentage of their trading or transaction fees in the form of cryptocurrencies.

This form of reward is best for individuals who are looking for a way to earn passive income or lower their trading costs as they can take part in programs to unlock earnings.

Closing Statement

After going through the blog, crypto reward campaigns not only help boost work efficiency with existing and new customers but also help promote the company’s services with the help of the right marketing tools and solutions. Whether it’s expanding a new customer base, higher retention of existing customers or increasing awareness of the crypto technologies, crypto programs play a huge role in unlocking several business benefits.

If you want to drive customer experience to the next level by implementing Blockchain in loyalty programs, connect with the experts of Novus, a top-notch Enterprise Loyalty Software that enables brands across the globe to keep up with evolving customer expectations with bespoke crypto loyalty programs. Book a demo with Novus to start your crypto loyalty journey today.

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