Loyalty programs are a massive industry, worth over 4 billion USD¹.
In an uncertain market, with a growing number of competitors, maintaining customer loyalty is increasingly challenging but valuable.
Web3 brings several benefits to loyalty programs that are difficult to reproduce using only web2 technology.
The major benefits of going web3 for loyalty programs include:
- Wallet tracking
- Community development
- Preparation for web3
- Brand awareness
- Marketplace effects
- Outsourcing record keeping and security
Let’s look at each of these in detail.
1. Wallet Tracking
The public nature of the blockchain brings transparency to information about user’s crypto wallets. When a user clicks “connect wallet” on a web3 website, they are asked to sign a confirmation, allowing the website to view (but not modify) their wallet’s information. This information includes:
- Wallet’s address (an identifier like 0xb794f5ea0ba39494ce839613fffba74279579268)
- Total amount of assets, including balances of cryptocurrencies
- History of every transaction associated with the wallet, including transfers in and out
- What chains the wallet is associated with, i.e. Ethereum, Binance, Polygon, etc.
- Basic analytics, like what their highest/lowest ETH balance was, and when the wallet was created.
In other words, once you have a user’s wallet, any information that is publicly available can now be retrieved with ease. It can easily be viewed by dropping the user’s wallet ID in etherscan.io.
The ability to retrieve this type of usually private information has never been seen before on web2. Details about a user’s account balance was once only available to financial institutions…