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Cryptocurrencies to replace boring bonus points


Western consumers are no longer interested in traditional loyalty programs with annoying bonuses and miles. To revive their interest and attract a young audience, companies – from online stores to car rental services – are beginning to offer bonuses in the cryptocurrency, says Bloomberg.

Cheaper and more interesting

Crypto bonuses for Western companies – a forced measure. Traditional loyalty programs are no longer of interest to buyers. The results of the poll conducted by the  Colloquy center showed that in the USA and Canada, more than 50% of loyal customers only accumulate bonuses but do not spend bonuses, and more than 30% leave the programs without even using the accumulated points.

The business hopes that cryptocurrency will help to change this trend  – especially among young consumers (according to a survey of Finder.com, every fifth millennial owns electronic currency).
New loyalty programs are full of different ideas. The largest Japanese online store Rakuten is going to issue its own cryptocurrency as bonuses, which can be exchanged for cash. Rent-a-Car rent service offers drivers the opportunity to pay bonuses in bitcoins. The computer giant HP is trying to create a more sophisticated loyalty program for the network of gas stations – based on the technology of the gas station will be able to offer the driver shares, coupons, and other bonuses, based on the location, speed, and consumption of fuel.
All this should not only attract young people but also help companies save – now US companies pay $ 35 billion to intermediary companies for processing and servicing loyalty cards. The transition to crypto bonuses will save at least 80% – processing in the blockchain is virtually nothing. The innovation can even improve the reporting of companies: now unused bonus points are recorded as liabilities, and electronic money can be included in the proceeds.
Of course, without intermediaries, it will not do. In the crypto sphere, several large start-ups are already working on this. Quibbee develops its own cryptocurrency programs for brands, DigitalBits – a cashback system in cryptocurrency for the loyalty programs of PepsiCo and Mars in Canada.
Most of these programs have one drawback – if it involves not only specially created cryptos that can be spent only on the services of the company (and what is the difference with the usual bonuses?), this means that customers can spend earned crypto anywhere in any place – the task of branding the original company is not solved. Unsurprisingly, many companies are not ready to part with decent amounts in real (albeit digital) money – for the consumer, bitcoin loyalty programs do not look very good now. For example, in a Rent-a-Car program, a driver gets $ 25 in bitcoins for every $ 5,000 spent – a so-so proposal.

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