Can Crypto Tokenization save your Customer Loyalty Program?
One can say that in all strategic business related fields, loyal customers are the main drivers of growth and survival. Brands try to aim to enrich the customer experience by establishing and managing loyalty programs that are to provide optimal customer journeys. However, most times, companies face negative consequences as a result of ineffective loyalty programs.
Tokenization of loyalty programs is more than just an emerging trend, instead it is becoming a desired and forthcoming program for many companies in the CRM field. Brands who are willing to improve their service drastically, are looking at the innovative application of loyalty tokens that not only serve a better user experience but also benefits the brand’s operational budget. Industries that can most benefit are hotels, restaurants, retailers and other clientele-oriented companies.
Opportunity:
Loyalty programs tend to be very attractive across all demographics despite numerous challenges (Retail Touch Point Study — recent survey reports), 86% of consumers across age groups stated that they have signed up for a loyalty program excited by the ability to collect and use points for rewards in the future. Moreover, the same survey also indicated that 75% of consumers actively participated in three or less loyalty programs. Conclusion is simple — companies need to create or evolve more compelling programs or just lose their market share. Another aspect to consider is that we sometimes forget the lifetime value of a loyalty customer experience is just as important as the acquisition and fulfillment experience.
Sample problems associated with Loyalty Rewards programs nowadays:
• Reward threshold is set to high
• Bonuses & promotions that are not compelling enough
• Fast-expiring bonus points
• Low member engagement
• Limitation of programs participants
• Expiration and blackout dates
• Bonus value which is reducing overtime
• Points redeeming is way too challenging*
*Where this may of been the “normal business” thinking to keep redemption costs low, it is now severely impacting overall customer experience thereby shortening or deteriorating the lifetime value of the customer.
Some airlines’ “less than ideal” loyalty programs are a good way to illustrate some of the opportunities in new crypto loyalty token programs. In some cases, the user experience is so challenged there is a new service to help customers with airline loyalty program management. A Time magazine piece states that there is now a trend/need for an “award booking consultant” to deal with the numerous complications that airlines create in redeeming frequent flyer miles.
If a customer has been loyal enough to acquire enough points for a reward, then surely, it’s counterintuitive to make the process of claiming it fraught with obstacles.