Traditional Loyalty Programs vs. Crypto Loyalty Programs

For fans
For brands
Loyalty & Marketing • May 19, 2021 • 4 min read
traditional loyalty programs vs crypto loyalty programs.

Why Crowny is different.

When creating Crowny, we asked ourselves, “What makes this idea different from traditional loyalty programs that are already in existence?”

Loyalty programs, sponsored by retailers and other businesses, offer rewards, discounts, and other special incentives as a way to attract and retain customers. They are designed to encourage repeat business, offering people a reward for store/brand loyalty.

The answer: Current loyalty programs are closed systems that don’t allow your points to be spent outside of the established business. This is good for the business and also very limited at the same time, but not so great for the customer. What if I don’t want another Starbucks coffee?

Problems within traditional loyalty systems

The traditional loyalty points have quite a few problems that don’t help to retain customers at all. To make the picture clearer we shall name a few of them:

  • 84% of consumers say they want more control over how their data is being used(Cisco). That means, they might be reluctant to sign up for the programs or share additional personal details with the businesses or third-party apps, as the privacy concerns prevail.

  • A complicated process of redeeming points. What’s the point of earning something you can’t take advantage of? So once more, a user signed up but has no idea how to use the bonus, the process is too complicated, or worse, the customized app does not function properly.

  • Inability to track the earnings. While points are valuable within the context of the program, customers normally don’t know how many they’ve earned or how many they need to take advantage of the rewards a business offers. Jamming the email or downloading multiple apps is also not helping, as it causes more frustration and consumes time to track every single brand the user likes.

The Crowny solution

This is where our innovative solution comes in. With Crowny, we’ve devised a system that leverages cryptocurrency and blockchain technology to make sure the user is always getting the rewards that THEY want.

With the Crowny app, users take back control of their personal data; they are engaged and connected with their favorite brands; advertisers reach their target audience without invading users’ privacy; users earn rewards in $CRWNY tokens and brand loyalty points.

The process for a consumer is simple

The simplicity of the Crowny app.

The simplicity of the Crowny app.

Using Crowny, the user earns loyalty points that are NOT closed. These loyalty points are eventually not limited to a single business. Instead, the users will be able to convert these loyalty points to multiple different types of rewards including:

  • Using the points to get rewards for other businesses (in the future)

  • Trading these loyalty points for items within the Crowny app or to purchase goods such as the merchandise we will drop very soon!

  • Eventually swapping the loyalty points for $CRWNY Tokens

As we’ve stated before, this system is built on Solana due to the speed, efficiency, and low costs that the Solana blockchain offers. The Crowny app will work by using encrypted QR codes to perform the operations needed on the program. E.g. when a company wants to reward points to one of their customers, they fill the number of tokens they want to mint, which in turn produces a QR code. Then, the user will get rewards.

If a company decides to create a campaign, they start out by depositing money into their account. The company pays fiat which is used to buy $CRWNY from the supply market. Campaign creation itself is very straightforward. Companies first set their target audience by selecting options such as gender, age range, and the preference categories they want to target. After finishing target audience selection, they will have to choose a starting date and how much $CRWNY they want to allocate to this campaign. When everything is set, the company can check the campaign they have just created and attach different ‘triggers’. These triggers include notifications, GPS fences, and QR codes and are the mechanisms that will actually interact with the consumer. More insights to be revealed soon. Want to know more about our ecosystem? Read more here!

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