The number of blockchain loyalty rewards programs has increased significantly in recent years as both the Web3 and decentralized application (DApp) sectors have begun maturing. But the most coveted consumer demographic, young adults, have shown a clear preference for participate-to-earn paradigms with focused ecosystems.
Statistics show that participation in the majority of Web3 and cryptocurrency products in the past decade has peaked during periods such as airdrops or other limited incentive windows. While there are numerous exceptions, the majority of projects that fail to gain traction with consumers in the first few months post-launch tend to trend poorly.
Self-contained economies meant to incentivize consumers have been around since the advent of currency and competition. From earning airline miles with credit card purchases to earning gift cards with Microsoft’s pay-to-browse incentivization program, there’s little that businesses haven’t tried when it comes to customer retention programs.
However, their implementation throughout the blockchain and Web3 communities has been sporadic and inconsistent across the splintered ecosystems. Many projects focus on cryptocurrency rewards that can be cashed out upon reception, reducing the incentivization to reinvest those funds, while others focus on rewards that only exist on the platform they were earned on.
Yet, in a recent roundtable discussion hosted by The Street’s Rob Nelson, a panel of insiders, including Paul Mikel, CEO and president of REVO Ride Share, Scott Lomu, CEO and president of Element United, and influencer Paul Cuffaro, cited tokenization and rewards as a primary driver of blockchain adoption.
The group discussed blockchain’s potential as a driving force for consumer loyalty through the lens of the technology’s implementation into the creator’s market.
However, as Cointelegraph reported, data from Consensys shows that influencers and freelancers make up a small percentage of the total number of people employed in the Web3 industry.
It’s unclear whether current blockchain-based loyalty programs have led to measurable increases in user onboarding. Most firms don’t release information related to the efficacy of their marketing efforts.
However, an analysis of the most successful projects currently trending as of September 2024 shows that mini-dApps, Telegram games, click-to-earn games, and prediction markets are showing explosive growth relative to traditional loyalty programs.
Simple experiences where incentivization is invisible or seamlessly integrated into user interfaces appear to be gaining the most traction with the largest demographic in the Web3 and cryptocurrency communities, those born after 1981.
(Copyright:Cointelegraph Young consumers may be getting bored with blockchain loyalty reward programs (cointelegraph.com)
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