According to a report by DappRadar, gaming was the most popular crypto category, representing 49% of all daily blockchain activity. However, the number of unique active wallets in the blockchain how to program blockchain gaming sector is low at 1.15 million daily UAW on average. In comparison, Fortnite, one of the most popular games from Epic Games, reported to have 20+ million daily active users in 2021.
Businesses are experiencing the downsides of traditional loyalty rewards. The complicated and overly diverse loyalty systems result in an overall lack of customer engagement and a decrease in repeat purchases. High maintenance and support costs are pain points across the entire industry. Different systems require education for everyone who intends to work with them. As we stand on the brink of what many call the blockchain revolution, many in the loyalty world wonder what that means for the future of loyalty rewards programs.
Clayton Christensen describes the typical journey in his book The Innovators Dilemma. One challenge with web3 rewards is the observed extractive behavior – users who engage with the product only to earn rewards and then sell those rewards. A prime example of this phenomenon can be seen in the Play-to-Earn paradigm, popularized by games such as Axie Infinity. To truly achieve widespread adoption, web3 platforms must find a balance between incentivizing user engagement and fostering genuine, long-term interest in the ecosystem. Now, let’s discuss a business that creates a supply of cashback tokens. Token holders will have a right to receive a perpetual cashback on the money spent on products and services offered by the company.
In the future, we plan to add the remaining digital assets to our blockchain network, e.g. coupons, vouchers, prepaid cards, badges, achievements, NFTs, and so on. After all, one of the disadvantages of coalition loyalty programs is the need to share data about clients with others or surrender control over the information (i.e. PayBack). Given that data is so key nowadays, undoubtedly one of the most valuable assets out there, the above is simply unacceptable both from the perspective of the consumer and the business itself. In short, storing a loyalty program’s all digital assets on a blockchain network, thus making them easy to exchange and trade.
When a customer makes a purchase, they receive a digital token that is stored on the blockchain. Of course, the introduction of one or more blockchain platforms unifying multiple loyalty programs could pose a number of risks. Such platforms would add a transaction layer between consumers and program operators and merchants, likely generating a small per-transaction cost, which could grow over time, much like OTA fees. Customer data, a loyalty program’s most valuable asset, could become available to other network participants, even competitors.
PBA launches Web3 rewards program.
Posted: Mon, 22 May 2023 07:00:00 GMT [source]
Personalize offers and promotions with near real-time insights into individual member behaviors and interests while sharing data with partners more securely than ever before. It should be noted that perpetual discount and cashback tokens are similar in many ways. The main difference is that a discount token can be utilized without handling or transferring any money.
They are also able to use market price signals to calculate their share of costs and benefits of the program. Additionally, the redemption of the rewards can be automated and governed by the blockchain ‘smart contracts’ further increasing the trust in the program. As one of the most prominent players in the industry, Loyyal uses proprietary blockchain and smart contract technology to offer its customers an interoperable loyalty and rewards platform.
The basic idea was to reward traders with $IMX tokens according to the amount of NFTs they traded on an Immutable powered marketplace. The Digital Worlds Foundation, in partnership with Immutable, has spent the past 10 months learning the best way to provide the rewards to achieve these growth goals, which as the chart below shows have been very successful. Having a growing network of loyal users will attract third-party service providers and vendors who will want to offer cashback to the existing token holders in order to attract new loyal customers.
Loyalty points are incentive programs businesses use to encourage customers to spend on their products. Users get more points based on how much they spend, which can be exchanged for more products or better quality services with the company. Loyalty programs are quite common, with everyone from airline companies and hotels to Starbucks offering one form or the other.
By maximizing the value for the Immutable ecosystem, bootstrapping user acquisition and user activity the Foundation generates more utility and productivity for the $IMX token which also benefits the Immutable ecosystem community. Web3 rewards can be seamlessly integrated across different platforms or projects. This interoperability allows customers to accumulate and use their rewards in a broader ecosystem, increasing the value and utility of the rewards and fostering customer loyalty. Early adopters, who can be rewarded in tokens for signing up and/or recruiting new users, will enjoy higher discounts when the user base grows.
Nevertheless, companies from other industries are starting to appreciate the benefits of blockchain to loyalty programs. In today’s highly competitive business world, customer loyalty and customer engagement are among the top priorities for many companies. Most marketing and sales efforts nowadays are directed towards retaining existing customers. Among many tools that companies utilize, loyalty programs – when done right – can have long-lasting effects.