It’s no surprise that customer retention is among the top priorities of most businesses today. Focusing on this aspect can lead to increased profitability, with some studies indicating a 25% to 95% increase in profits for a just a 5% increase in customer retention. But if you’ve been in business for some time, you will agree that today’s customers are more complicated to keep than ever.
Besides just wanting value, customers also want experiences. They want innovation and to feel like they’re part of something forward-thinking. That’s where crypto enters the chat. And although the idea of crypto improving customer retention might sound illogical to some, digital currencies can actually offer experiences that encourage return visits. Interestingly, many businesses have already opened their doors to these currencies.
A quick glance at the Bitcoin price history will help illustrate this point. What started as a nearly worthless digital token in 2009 has evolved into one of the most closely watched financial assets globally. Its growth over the years perfectly mirrors how everyday conversations have sparked interest in the coin, with more people engaging with digital wallets and learning about blockchain technology. And as cryptocurrencies continue to gain widespread adoption, they provide reasonable grounds for improving customer loyalty.
Token-based loyalty systems are more engaging than points
Most people generally love bonus features. According to a recent Cropink publication, approximately three-quarters of customers prefer to transact with brands that offer loyalty rewards over those that don’t. These rewards are usually important because they help customers connect more emotionally with brands, which could improve lifetime value by up to 306%.
However, you don’t want to have a non-adaptable loyalty program that consumers struggle to use across multiple platforms. Unfortunately, this is one of the main challenges of traditional rewards. Because they are locked up in applications, you can earn them and even forget you have them. It’s a rinse-and-repeat loop that many consumers eventually give up on.
Now, imagine replacing those boring points with tradable, blockchain-based tokens that can be used elsewhere. For customers, this means an expanded digital portfolio, which may lead to more return visits. And since 78% of consumers are likely to switch to brands offering better reward programs, it makes a lot of sense for more businesses to adopt crypto-based loyalty features.
Crypto incentivizes behavior in real time
You can’t ignore timing and still expect customer interactions to be effective. Reaching customers at the right moment with the right message can capture their attention, while poorly timed outreach can lead to missed opportunities or even negative perceptions. With technology having advanced this much, customers no longer have to wait for a monthly statement or reach a reward threshold for actions like writing a review or referring a friend.
Thanks to cryptocurrency technology, businesses can now overcome these challenges. Take Brave Browser, for instance. This privacy-first web browser adopts a Brave Rewards feature, enabling users to earn Basic Attention Tokens (BAT) for viewing ads that respect their privacy. Users know what they’re getting, and they get it instantly. This model turns passive activities into engaging transactions, which keep people coming back.
Think of yourself as a frequent flyer who gets airline tokens for watching a short video about a new destination. Or better still, a customer who gets a small piece of Ethereum every time they share a product on social media. Such encounters deepen brand connection and foster repeat engagement, a feat that traditional rewards rarely accomplish with the same immediacy.
When it comes to payments, crypto’s immediacy also carries the day. Remember, digital currencies are decentralized, eliminating the need for third parties who often lengthen the transaction process. This improves the user experience and encourages return visits, as consumers can receive their funds in no time.
Improved security builds long-term trust
No one wants to interact in an environment that could expose them to threat actors. This security preference has become prevalent, especially now that about 600 million attacks happen daily. That’s why you’ll often notice a good number of consumers surveying platforms’ security before transacting.
Studies show that more than eight in ten consumers must trust a brand before they will transact. And what better way to improve customer trust than by implementing tight security measures? According to Security Magazine, approximately two-thirds of customers lose trust in a company following a data breach. What’s even more intriguing, about 83% may avoid your brand for several months after these incidents.
Since crypto’s decentralization eliminates the possibility of single-point failures, adopting it can help appeal to these security-conscious shoppers. This technology is also immutable, preventing data manipulations after storage. Its advanced transparency allows you to verify transaction history, which can help determine whether your data is being sold behind your back. For someone who’s ever felt burned by unclear policies, such experiences can be game-changing.
Surviving in today’s competitive business world might not be possible for non-innovative brands. You don’t expect to stand out by merely providing friendly newsletters and discounts. Shoppers have become more discerning and want engaging experiences, such as real-time payments, if they are to remain loyal. But this should not be at the expense of online security. Digital currencies, used correctly, can help cater to modern preferences while ensuring shoppers interact more securely. This results in deeper customer bonds, which may lead to more return visits.
