GUEST BLOG: How retailers can embrace cryptocurrencies to boost business and loyalty
By Raj Agrawal, Founder & Tech Entrepreneur, Dewber
Traditional loyalty schemes are in need of an overhaul – customers are tired of carrying around multiple store cards and retailers are looking for new ways to encourage sales.
This is where cryptocurrency comes in, offering a new platform that retailers can customise and use how they see fit. Any retail business can incorporate cryptocurrency into their business operations, creating new opportunities and advantageous benefits for both the business and the customer.
Loyalty schemes are nothing new. Big retailers have seen loyal customers purchase 90% more regularly than casual customers, and the average spend can be much higher when a customer knows they are collecting points. The problem is, smaller and independent retailers can find it difficult to achieve the same amount of customer retention through their loyalty scheme alone.
Many loyalty points are forgotten about, and too often accounts become inactive. Globally, there is over 100 billion dollars worth of unclaimed loyalty points, leading to the question: How can we innovate our loyalty schemes to keep customers coming back?
Cryptocurrencies may seem complicated, but once on board, it can give retailers the opportunity to attract and keep a new, young customer base. Over 17% of millennials have purchased digital coins, which can be spent and traded freely through a centralised, online system. This cashless system is gaining momentum, and retailers can maximise business by incorporating this into their loyalty schemes. By receiving digital tokens instead of traditional loyalty points, customers are getting something they really want – the ability to earn loyalty from everywhere and choose where to spend thereby creating shared loyalty experience on the high street. The chances are they will keep coming back to you when they know their digital purse is growing.
Once a retailer is signed up to a blockchain-based loyalty scheme, they will become part of a wider, global network of retailers who offer the same digital tokens and business specific rewards. Customers can receive digital tokens with every purchase, which can then be redeemed globally at any participating business. It’s up to you how the tokens are awarded and redeemed. Customers will become magnetised to these businesses who offer a common goal, leaving the individual store cards behind. This innovative system allows a much greater use of loyalty points by the customer, which in turn can only lead to more committed customer base for retailers that may have struggled before.
By introducing cryptocurrency into your loyalty scheme, you can begin to capture the attention of the younger generations, and ultimately improve customer engagement and repeat spends. Companies such as Dewber are gearing up to provide a user-friendly platform for retailers to get involved, and aid with navigating this game-changing way of rewarding customers.
Whether you are a café, bar or independent retailer, offering digital tokens could be the business-savvy way forward.
About the Author
Dewber founder and CEO Raj Agrawal has over 20 years experience in business, technology, senior management experience in operations, IT security, marketing and finance within fortune 50 companies like Deutsche Bank, Prudential (Vitality), Visa Europe and Deloitte UK.
Dewber is a tech start-up which uses blockchain to bring innovation to the loyalty economy with the ability to run global rewards and crypto points schemes. Dewber offers a digital mobile experience, customer engagement, cross channel redemption capabilities and strictly does not perform any data mining by collecting or analysing customer purchase history for marketing or cross product promotion.