Revolutionizing Retail Loyalty: How Crypto is Shaping the Future of Customer Incentives

The Sticky Problem of Customer Loyalty

Every retailer’s dream is to have a loyal flock of customers who just can’t resist flocking back for more. But as it turns out, winning hearts through loyalty schemes is as easy as fitting a giraffe into a compact car. While a 2019 Bond’s Loyalty Report revealed that 73% of consumers would happily recommend a brand with a decent loyalty program, just 22% felt that the rewards on offer mirrored their individual interests. Ouch!

The Complexity Conundrum

Let’s be honest, many loyalty programs are designed like a Rubik’s cube—complicated and frustrating. When asked about their experiences, only 44% of customers expressed satisfaction with the programs they participated in. Users often end up scratching their heads, wondering about the value of those elusive points they’ve accrued. It’s no surprise some brands are being tossed aside like yesterday’s leftovers, with consumers abandoning programs after discovering their mediocre returns.

Smartphones: The Overwhelming Factor

Oh, and did we mention that most retailers are tripping over their own laces when it comes to digital engagement? Consumers are reaching for their smartphones while brands are still stuck on flip phones. If instant messaging, social media, or custom apps aren’t part of your plan, then well…you might as well carve your brand into a rock tablet.

KPMG’s Call for Change

Piloting the ship out of the chaotic waters, KPMG has thrown down the gauntlet, demanding a reshaping of loyalty schemes. Almost 40% of consumers reported issues with their loyalty programs within six months. But there’s a silver lining: two-thirds of shoppers are willing to embark on a special trip—rewards in tow—to access a compelling loyalty program. Even better, about 60% would consider spending a tad extra for perks such as points, discounts, or free gifts. There’s hope yet!

Blockchain: A New Dawn for Loyalty

Just when it seemed loyalty programs were doomed, enter stage left: blockchain and cryptocurrency. The perfect antidote to the fading allure of credit cards and frequent-flyer miles, digital tokens could lure a fresh cohort of younger customers who shy away from traditional incentives. Unlike those pesky fiat rewards that expire quicker than your New Year’s resolutions, cryptocurrencies swear to stick around.

The Crypto Revolution Continues

Some savvy players, like Rakuten, are exploring the enticing prospect of creating cryptocurrencies that users can convert into cash. Others are venturing into points that are exchangeable for Bitcoin! Imagine a scenario where the money you earn for your seemingly relentless shopping adds up to some actual Bitcoin. Cha-ching!

MozoX: The Token Trailblazer

Stepping into the spotlight with a cool swagger is MozoX—the company that’s shaking up the loyalty market with its crypto-themed schemes. Dubbed a “token of discovery,” MozoX aims to pull shoppers back into brick-and-mortar establishments with a modern twist. By showering tokens on shoppers during visits or purchases, they’re not just throwing cash; they’re creating a redeemable currency that’s usable at participating retail locations.

The Numbers Game

The global loyalty market is a staggering $300 billion playground, with an impressive 91 million stores dabbling in some form of loyalty incentive. MozoX has ambitious plans to hook its system into 90,000 stores over the next couple of years, aiming to reach a whopping 13 million shoppers. And with an initial exchange offering on the horizon, fans of cryptocurrency and retail better keep their eyes peeled!