Disclosure: The views and opinions expressed here belong solely to the author and do not reflect the views and opinions of the crypto.news editorial team.
To be successful on Web3, brands must understand that the future of loyalty is not about locking customers into closed systems. It’s about giving them freedom – the freedom to own their data, control their rewards and engage with brands on their own terms. Loyalty programs have never been more popular, but they’ve also never felt more outdated. As the inflation crisis subsides, customers continue to exchange personal data for offers and gain access to “normal” prices, while non-members pay a premium.
This tactic is counterintuitive, but it works. According to Antavo Global Customer Loyalty Report 202367.7% of companies plan to increase their investment in loyalty programs to retain customers in the face of inflation. And 79% of American consumers have taken the bait and are spending more on brands that offer loyalty benefits, Statista reports.
But this attempt to increase loyalty has shown that traditional loyalty programs are becoming less important. But a solution is emerging. Blockchain technology has emerged as a potentially radical alternative to the tried-and-true loyalty programs that many brands still cling to.
Walled gardens and limited use cases
Anecdotally, traditional loyalty programs have operated within walled gardens where customer data is siled and rewards are limited to specific use cases. These models have long relied on third-party cookies and opaque data
