Attracting and retaining customers have long been one of the major headaches for businesses all over the world. Companies use several ways to get these customers, and one such way is loyalty programs. These programs have been quite effective in retaining customers. But loyalty programs are not perfect. They have challenges, such as geographical limitations, limited reward options, complex redemptions, etc.
All these issues affect the overall effectiveness of loyalty programs. But Web3 and blockchain technologies like cryptocurrencies and non-fungible tokens (NFTs) can solve these challenges and redefine loyalty programs. Let’s discuss how.
What are loyalty points
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