Bitcoin can potentially provide the most innovation the world of loyalty rewards has ever seen, and this post covers a few of the reasons why.
Couple recent posts here:
BOJ Ends YCC and Implications for Bitcoin
What Would Constitute Checkmate?
Fungible
BTC is the same everywhere. Airline miles and coffee shop points are not. Can't take your Delta miles and make them liquid now, and then spend them seamlessly and instantly. BTC is BTC in Tokyo, Boston, Frankfurt, and anywhere and everywhere else. This is boring but VERY CRUCIAL.
Divisible
Done chopping up that gold coin into a thousand little pieces? The divisibility of Bitcoin enables micro-transactions which changes everything in the world of loyalty rewards. Bitcoin rewards programs can instantly distribute tiny amounts of Bitcoin across an unlimited number of participants. This is drastically different than sending a bunch of "points" out in small increments. The cost of doing such is near zero as well measured in fiat. Try sending out $0.50 each to a thousand people instantly using the legacy rails.
Speed
When you "get the reward" from the coffee shop, are you really "getting it"? You are receiving some type of points or tabulation of a unit of some sort, but it is not real economic and financial value that is liquid now. Redeeming in Bitcoin to run a loyalty rewards program enables one to send out real value to users very quickly and efficiently. Users get the dopamine hit quickly thus more strongly aligning them with your offering and curiosity about repeating the transaction again in the future. Pay 'em quick and keep 'em coming back.
Clunky Legacy
Legacy loyalty rewards programs often require users to jump through a few hoops. Create a new login and password. Carry around another physical card for a physical legacy wallet. Remember some combo of passwords, card use, or other "extra thing" that needs to be done. It's clunky and annoying as it adds in "another thing to do" for users. More importantly - in this day and age of tech and AI people simply don't want to mess with it. Loyalty programs need to be very seamless with easy dopamine hits that can be repeated over and over.
Bitcoin loyalty programs can BE THE actual loyalty program using tech like NFC tags. Users can receive Bitcoin via the Lightning Network by tapping an NFC tag which also creates a Loyalty Program for the B2B client simultaneously using email and phone number only.
No Strings Attached
Can't use those miles when you want to actually fly? That happens. Give the users Bitcoin and let them do whatever they want with it.
SOV Nice Thing to Receive
It stands to reason that if BTC were to continue to perform very strongly as a Store of Value, then users would more and more consider Bitcoin to be a "nice thing to receive".
A: "Hey, I got some extra Bitcoin, you want it?"
B: "Hell yeah!!!"
A: "Also got these airline miles I never use them you want them?"
B: "Nah, I'm good."
Get it? Give them something they actually want to universally receive thus making the Loyalty Program itself more valuable since the "reward" is . . . . . an actual reward.
