Various blockchain startups, such as the Lichtenstein-based DigitalBits project, seek to use protocol tokens to reinvent loyalty programs.
Many start-ups are considering a market where loyalty points become a sort of cryptocurrency, exchangeable between loyalty programs offered by brands.
In most cases, brands should participate in the market, supposedly because it makes their rewards more interesting. Many loyalty points would not be redeemed.
But, says an expert of the loyalty program, such universal loyalty currencies are a bad idea for brands.
[Read the full article on MarTech Today.]
About the author
Barry Levine covers marketing technology for Third Door Media. Previously, he covered this space as a senior writer for VentureBeat, and he has written on these topics and other technologies for publications such as CMSWire and NewsFactor. He founded and directed the website / unit at PBS Thirteen / WNET; worked as a senior online producer / screenwriter for Viacom; created a successful interactive game, PLAY IT BY EAR: the first CD game; founded and directed an independent cinema showcase, CENTER SCREEN, based at Harvard and M.I.T .; and served more than five years as a consultant to the M.I.T. Media Lab. You can find it on LinkedIn, and on Twitter at xBarryLevine.