In the fast-changing world of marketing, loyal customers are the holy grail of any thriving business.
As such, nearly all B2C companies have developed their own loyalty program, designed to reward return customers and collect data on their behaviour for marketing and personalisation decisions.
A well-planned, dynamic and genuinely rewarding loyalty program can transform one-time customers into devoted advocates and deliver more meaningful insights than simply the number of purchases made.
Loyalty is evolving, and Web3 is opening up a new realm of opportunities and overcoming some of the challenges of traditional loyalty programs.
Web3 beckons a new type of loyalty experience – one that gives genuine ownership of rewards to customers. They can truly benefit from owning them by choosing what to do with them – even transferring them to fellow shoppers to generate new business, helping marketing teams build richer customer profiles in the process.
Key challenges for marketers and businesses
From limited data, lack of real-time insights, and data privacy concerns, to basic predictive analytics – challenges with traditional loyalty programs are becoming more of a strain.
For starters, customers don’t really ‘own’ their points; they often have several pools sitting with different brands that don’t actually motivate return visits, and points are usually only awarded for transactions, not high-value customer activity like making referrals.
These points can also expire and be difficult to keep track of, nor can the users share or trade what’s theirs. Businesses often find themselves in the dark, not able to use accurate, advanced predictions when implementing audience targeting.
A centralised, Web2-based loyalty system simply doesn’t tell them everything they want to know about their customer behaviour online.
