The post 2024’s loyalty overhaul: Blockchain’s promise for brands appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. To succeed in web3, brands need to understand that the future of loyalty isn’t about locking customers into closed systems. It’s about setting them free—free to own their data, control their rewards, and engage with brands on their own terms. Loyalty programs have never been more popular, but they’ve also never felt so outdated. As the inflation crisis eases, customers continue to trade personal details for deals—gaining access to ‘normal’ prices while non-members pay a premium. This tactic, although counterintuitive, is working. According to Antavo’s 2023 Global Customer Loyalty Report, 67.7% of businesses have made plans to boost investment into loyalty programs to retain customers in the face of inflation. And 79% of American consumers have taken the bait, spending more with brands that offer loyalty perks, reports Statista. Yet, this scramble to boost loyalty has revealed that traditional loyalty programs are losing relevance. But there is a solution on the horizon. Blockchain technology has emerged as a potentially radical alternative to the tried and no longer true loyalty programs that many brands still hold onto.  Walled gardens and limited use cases Anecdotally, traditional loyalty programs have operated within walled gardens where customer data is siloed, and rewards are limited to specific use cases. These models have long depended on third-party cookies and opaque data practices to thrive. However, as privacy regulations tighten and cookies phase-out, these models are rapidly losing their viability. The result? Loyalty inefficiency through unused points, shallow engagement, and fragmented data. Additionally, thanks to data breaches becoming garden variety, consumers are increasingly erring on the side of caution over how their data is collected and used, with many opting out of loyalty programs…

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Filed under: News - @ December 30, 2024 1:25 pm