Can Crypto Platforms Help Loyalty Schemes in Shops Make a Comeback?

Retailers have been offering loyalty schemes for decades - but ensuring they are attractive enough to generate repeat customers is easier said than done.

Although 73% of those polled said they were more likely to recommend a brand with a good loyalty program, personalization is proving crucial for keeping these shoppers engaged - and just 22% are very satisfied that the rewards they are offered are matched to their individual interests.

This led professional services firm KPMG to release a report calling for loyalty schemes to be given a wide-reaching rethink.

Almost two-fifths of consumers polled encountered a problem with a loyalty program they used over a six-month period.

Transforming the loyalty marketWhat's the solution for giving consumers what they want and ensuring that loyalty programs are viable for businesses? Well, with crypto and blockchain already upending countless other industries, it seems inevitable that this one would be ripe for disruption too.

Digital tokens are beginning to gain momentum, attracting younger audiences who may not be interested or engaged with credit-card loyalty programs or frequent-flyer initiatives.

Businesses are starting to get fed up with investing so much in offering loyalty schemes that end up inactive.

For many crypto-based loyalty scheme providers, it's also about placing the power back in the hands of consumers.

"A token of discovery"One company that's making a foray into the crypto-focused loyalty market is MozoX, which bills itself as a "Token of discovery."

The company estimates that the worldwide loyalty market is worth a cool $300 billion, with 91 million stores using loyalty schemes to some extent.