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How Does a Loyalty Program Work on the Blockchain, Explained


At the basic level, a loyalty piece allows businesses to have a loyalty card. attract their customers more easily.

At the very least, giving customers loyalty points that they can spend where they want, or even trading for cash, makes a merchant more valuable to customers. This should help build customer loyalty. The only thing that could differentiate the competitors is the way they target the customers and the amount of loyalty coins that they offer.

Another advantage of a universal fidelity cryptocurrency for traders is that it could help them reduce their liability. Responsibility is an entry in the balance sheet of a company that tells what they owe to other people or companies. And since loyalty points are a promise to give customers discounts or even free items, which would be money most of the time, it must be accounted for as a liability. If each customer decides to redeem their points all at once, or in the same period, the company's financial records are likely to suffer. However, as everyone can participate in extracting Elements coins, for example, merchants can exploit themselves and offer loyalty coins to customers. They can also accept loyalty coins that other merchants have purchased.

Traditional loyalty points have no monetary value to the merchant after it has been spent. And that's why it's a win for traders because a Blockchain-based currency could be exchanged for currency, helping them to recover at least a portion of the sales made with cash. Loyalty points.