Can cryptocurrency replace loyalty rewards programmes?

cnbctv18.com:

Credit and debit cards have been used to buy products and services for years now. And to incentivise the use of these plastic payment services, companies provide their loyal customers with points or rewards.

These reward programmes not only help companies build brand loyalty, but they also add significant value for customers.Now as cryptocurrencies rise in popularity, credit card companies have started to offer crypto like Bitcoin, ETH, or stable coins instead of airline miles and hotel points. It’s a trend that could signal the unification of the credit cards industry and the technological advancements of blockchain.Why cryptocurrency can be beneficial to rewards programmesCustomer loyalty is the name of the game today.

Customer retention is just as important as finding new ones. It’s one of the reasons why the loyalty programme industry has become so essential, even though it has only been around for a relatively short period.According to the industry benchmark COLLOQUY Loyalty Census, loyalty programmes in US-based companies have grown by 20 percent to $3.32 billion in 2015 from $2.65 billion in 2012.Also read: How to modify or cancel transactions on Ethereum blockchainOne of the biggest upsides of crypto-based loyalty points is that they can be exchanged for fiat currency or other cryptocurrencies.

Normal loyalty points, on the other hand, can only be redeemed for certain products and services. If you are not in need of these products and services, then your loyalty points hold no value.Also, with a normal loyalty programme, the company offering you the benefits not only knows your name and address but is also privy to your spending habits, redemption patterns and other unique consumer information.