How a Loyalty Program on Blockchain Works, Explained
1. What Is a Loyalty Program? Merchants set them up to encourage customers to come back and buy their goods or use their services. A typical loyalty program would require a customer to register with the merchant offering the program so they can accumulate loyalty points. Depending on the type of business and the terms of the loyalty program, the loyalty points could allow customers special access to new products and services, used to get discounts on future purchases or even receive free merchandise.Some example of loyalty programs include frequent flier miles offered by airlines , restaurant points and hotel points that could be applied towards a future stay. 2. Why does it matter? Loyalty program helps a business keep a decent customer retention rate. The less obvious answer is that it helps businesses save cost. Depending on the industry, it costs businesses between five and 25 times more to acquire a new customer than it costs to sell to ...