Almost 80% of consumers claim that they are more likely to remain loyal to brands with good rewards programmes, according to a Bond’s Loyalty report. It explains why retailers are continuously searching for the freshest idea to keep customers engaged. Meanwhile, a seemingly unlikely ally is starting to gain quiet momentum: blockchain and crypto. While headlines often highlight crypto’s wild swings, the role of crypto in retail loyalty programmes has often gone unnoticed but proven effective.
For instance, the sportswear giant Nike recently experimented with reward tokenisation connected to limited-edition product releases. It’s no surprise as the brand has always been known for being ahead of the curve. Nike also offered rewards for early access to an innovative concept in upcoming blockchain ventures.
Loyal customers who gained early access to top crypto presales of this and many brands can enjoy discounted prices and take a profit when prices rise. This appeals to all customers who understand that they can acquire new and limited-edition tokens at discounted rates, which may lead to great returns, even for those who didn’t use them to buy specific products.
Nike’s small yet strategic move revealed how adding a blockchain element to loyalty rewards programmes could make them more exciting while improving customer retention. Blockchain provides a level of transparency and security that can’t be matched by traditional systems. Loyalty points always existed as isolated credits that could only work in a specific brand’s ecosystem. However, encouraging customers to earn crypto or buy crypto for specific discounts empowers them to use the rewards in a larger ecosystem.
The loyalty rewards even become liquid assets customers can trade on secondary marketplaces or transfer across partnerships, adding the flexibility to create new collaborations between different retail brands.
Blockchain programmes tied to Web3 ecosystems also allow retail consumers to spend, trade, and earn tokenised assets across various retail collaborators. Companies like Starbucks use Web3 customer loyalty programme opportunities to run Starbucks Odyssey, which allows customers to collect, trade, and earn digital stamps connected to real-world purchases. It blends physical and virtual rewards to maintain interest among communities.
The biggest appeal of Web3 blockchain loyalty programmes is how they change the concept of ownership. Traditional programmes frustrate customers because their points expire or carry no real-world value. The Starbucks programme changed that by handing customers more control. Starbucks customers now owned tokens on a public ledger, making them more tangible and increasing their perceived value for higher engagement levels.
Luxury brands also latch onto the innovative loyalty programmes. For example, LVMH experimented with product authenticity tracking on blockchain technology. They also tied loyalty benefits to actual purchases. Customers buying a genuine Louis Vuitton handbag received blockchain-based certificates that also doubled as rewards tokens to unlock future perks. The new approach to loyalty programmes secures the supply chain and changes every purchase into ongoing relationships between the brand and customer.
Blockchain in retail has long allowed French Carrefour and Canadian Walmart to improve inventory management and supply chain tracking. However, some supermarket chains are experimenting with consumer-facing loyalty programmes that incorporate blockchain tokens by allowing customers to earn them based on their purchasing behaviours. Customers can then also use these token rewards across multiple partner companies or services.
Transparency is pivotal, but automation has driven the growth of crypto-based loyalty programmes in retail industries. The ability of smart contracts to activate loyalty rewards automatically once pre-set requirements are met makes sure there are no disputes about forgotten promotions or missing points. The technology reduces any friction once experienced by loyal customers. However, the experience may become even more streamlined as more retailers compete for wallet share.
Some clear business benefits also exist. Brands that adopt blockchain loyalty programmes typically report better engagement rates, valuable data insights, and lower operational costs. Blockchain’s decentralised nature removes the need for third-party intermediaries to encourage more direct savings. However, the most powerful factor driving the success of these programmes is that customers feel like they own their rewards, which deepens loyalty.
Despite the benefits and successful experiments, blockchain loyalty programmes still remain under the radar. Some companies run pilot programmes or limit them to specific regions. Regulatory uncertainty, the need for consumer education, and technical complexities drive caution. Fortunately, the steady rise of successful case studies should soon change that.
More brands are likely to roll out crypto-based loyalty programmes as consumer knowledge grows and blockchain tech matures. Meanwhile, the silent expansion provides excellent data to inspire decisions among other retailers willing to adapt, advance, and innovate.
