Retailers take been offering loyalty schemes for decades — but ensuring they are bonny plenty to generate repeat customers is easier said than done.

Bond's Loyalty Study, which surveyed 55,000 consumers in 2022, exposed these challenges in a stark mode. Although 73% of those polled said they were more likely to recommend a brand with a expert loyalty programme, personalization is proving crucial for keeping these shoppers engaged — and but 22% are very satisfied that the rewards they are offered are matched to their individual interests.

Overall, retail initiatives are failing to keep up with customer demand. Just 44% are very satisfied with the programs they use. There are recurring issues that fifty-fifty the biggest companies are failing to address. Sometimes, their schemes are but as well complicated for users to go their heads around, leaving them unsure nearly what the points they have accrued are actually worth. In other cases, shoppers carelessness programs considering the returns are disappointing. With hundreds and even thousands of brands offering their own cards and accounts, the procedure of registering for each ane individually and remembering to use them all tin can be overwhelming. And, on height of all this, also many retailers are failing to reach their target market on smartphones — either through instant messaging, social media or custom-built apps.

This led professional person services firm KPMG to release a written report calling for loyalty schemes to be given a wide-reaching rethink. About ii-fifths of consumers polled encountered a problem with a loyalty program they used over a half dozen-month period. Only here'south the thing: Businesses tin can striking a lucrative sweet spot if they get their suggestion right. KPMG's research also revealed that 2 in 3 shoppers end up making special trips to earn a reward on a compelling loyalty programme — and better still, iii in 5 shoppers would really exist prepared to pay a little more for goods and services if they had the chance to accrue points, discounts or gratuitous products.

Transforming the loyalty market

What's the solution for giving consumers what they want and ensuring that loyalty programs are feasible for businesses? Well, with crypto and blockchain already upending countless other industries, it seems inevitable that this one would exist ripe for disruption also.

Digital tokens are beginning to gain momentum, attracting younger audiences who may non exist interested or engaged with credit-card loyalty programs or frequent-flyer initiatives. Plus, given how many schemes in the fiat world offer rewards that end up expiring all of a sudden, cryptocurrencies take the benefit of existence more permanent. Major players such as Rakuten are exploring this potential, developing a coin that loyal users could catechumen into cold, hard greenbacks if they wanted to. Other brands are building platforms where customers are rewarded for frequent purchases with points that can exist exchanged for Bitcoin.

Businesses are starting to get fed up with investing so much in offering loyalty schemes that stop up inactive. Retailers and merchants are paying tens of billions of dollars a twelvemonth to companies that provide the infrastructure for such initiatives — and research suggests that blockchain could slash these costs dramatically.

For many crypto-based loyalty scheme providers, it's also virtually placing the power back in the easily of consumers. Attitudes are beginning to alter. Dorsum in the day, information technology used to exist the example that points accrued from a coffee store would have to exist spent at that same chain. But now, multiple brands are meeting under one roof — enabling them to attract a wider audience and welcome shoppers through their doors who may non have made a purchase before.

"A token of discovery"

One company that'south making a foray into the crypto-focused loyalty market is MozoX, which bills itself equally a "token of discovery."

Although its concept is firmly rooted in the hereafter, the company has taken a novel approach by blending the realms of e-commerce and brick-and-mortar retail. Information technology is aiming to motivate shoppers to return to offline stores — driving footfall in malls. The platform's vision is to entice the public by enabling them to receive MozoX tokens through airdrops established by participating retail outlets, malls and venues just by visiting their offline locations or past making a purchase. Over time, these tokens tin be accrued and redeemed against products and services at whatever of these venues — "giving shoppers option, flexibility and convenience," according to the company.

MozoX says that its cryptocurrency will be easy to transfer and trade on major exchanges, storable in major wallets and purchasable using fiat currencies, including U.S., Hong Kong and Singapore dollars. The visitor estimates that the worldwide loyalty market is worth a cool $300 billion, with 91 million stores using loyalty schemes to some extent. Executives say they have already signed memorandums of understanding to roll out its engineering science in 90,000 stores over the next three years — potentially reaching xiii million shoppers — and that its app value proposition to merchants compared favorably to the likes of Facebook and Uber Eats because MozoX guarantees human foot traffic.

Round one of an initial exchange offering is set to have place on the LAToken platform from Nov. 25 to December. 25, and MozoX tokens can be purchased using Bitcoin, Ether or Tether.

Learn more than virtually MozoX

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