Stop offering discounts to your loyal customers, start offering crypto rewards

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When cryptocurrencies first started out as a way to create decentralized digital currencies, they were mostly used by technicians and financial experts – people who understood the intricacies of crypto and how they could build a large reserve. digital currency.

Fast forward to today, and things have changed dramatically. Hundreds of millions of people around the world use cryptocurrencies, with countries like Nigeria recording adoption rates as high as 32%.

Many factors have played a role in this trend, from trading apps and games to win, to recommendations from influencers. Each of them has helped bring cryptocurrency into the mainstream. As usage accelerates among businesses and everyday customers, some believe crypto-based loyalty rewards may soon become the next big ecommerce trend.

To learn more about this growing trend, I recently chatted with Mike Ross Kane, co-founder and CEO of Hydrogen, a code-less platform that helps businesses deliver their own debit and credit card products. As his insights reveal, understanding the potential of crypto rewards could prove critical to your future ecommerce success.

What the increase in crypto rewards means for businesses

Rewards programs have long been a way for businesses to build customer loyalty. From grocery stores offering discounts at gas stations to clothing retailers offering gift certificates that must be redeemed over a future two-week period, the companies have been very creative in how they have enticed customers to come back for more.

Eventually, however, these types of rewards may start to feel the same way to the average customer. As Kane notes, crypto rewards offer something new and unique that catches the eye of online shoppers.

“Crypto rewards can be a great way to build customer loyalty. Bitcoin is now worth over a trillion dollars. There has never been more interest in crypto assets. It is very important to differentiate a rewards program from its competitors. It’s no longer enough to simply offer more ‘cash back’ on purchases, businesses must continue to find innovative ways to attract and retain customers – and crypto rewards are the perfect way to do that. “

As Kane reveals, brands that have already dipped their toes in the waters of crypto rewards have reaped big dividends. “Several companies launched crypto rewards programs in 2021 and racked up waitlists of 250,000 or more. There is an incredible pent-up demand for crypto rewards. If you’re a small business, imagine what the potential addition of thousands of customers to your pipeline can do for your bottom line.

As this example illustrates, becoming an early adopter can be a major competitive advantage for e-commerce brands. Forward-thinking companies that implement a crypto rewards program will gain much more attention from crypto enthusiasts, which will help them strengthen their customer acquisition and retention efforts. The longer a brand waits to implement such a program, the more likely it is to get lost in a sea of ​​similar rewards.

Key Considerations When Launching a Crypto Rewards Program

“Ecommerce companies should tailor their crypto rewards programs to their brand and their customers,” advises Kane. “For example, you can offer crypto rewards where users earn their preferred form of crypto for every dollar spent in your store. Some brands even go so far as to create their own cryptocurrency, which can then be used exclusively on items. of their site.

Ecommerce brands that plan to offer a crypto rewards program may also consider accepting cryptocurrency payments. Even if your current customer base doesn’t have a significant demand for crypto payments, the more payment options you provide, the easier it is for site visitors to complete their payment.

Such metrics can show that your crypto rewards program is more than just an offer of attention. You don’t have to be a tech-driven brand to accept crypto payments and implement a crypto rewards system.

Of course, there is no denying that cryptocurrencies have proven to be quite volatile. For example, while the value of Bitcoin currently exceeds $ 60,000, this very popular cryptocurrency has seen its fair share of dips and peaks – dropping to $ 5,000 near the start of the COVID-19 pandemic.

Other cryptocurrencies can be even more volatile – and for this reason, e-commerce brands should be careful with how they market their crypto rewards programs to customers. “Businesses need to make sure their customers are aware of the risk of holding cryptocurrency assets,” Kane said.

“We always recommend that any business speak to qualified legal and accounting professionals before offering this feature. You don’t want to find yourself in a mess because customers feel like they’ve been cheated or suffered a loss through your rewards program. “

Clearly communicating what the rewards program entails, including details of the type of currency your rewards program will use and the potential risks involved, will provide a smooth and engaging experience for customers.

Of course, continuing to offer a more traditional rewards program for users who are not interested in crypto will ensure that you have something appealing to every visitor.

Are crypto rewards in the future of your business?

“While a crypto rewards program won’t appeal to all customers, at the very least, it’s worth some serious thought,” Kane concludes. “Becoming one of the first to adopt this feature could give your business better access to a technological knowledge base with high purchasing power. Even if crypto doesn’t seem like a good fit initially, it’s important to consider how this type of program might help you target a new audience.

One thing is for sure: more and more e-commerce brands will undoubtedly use rewards programs as a further step towards full cryptocurrency adoption.

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