Visa has introduced its Web3 Loyalty Solution, aiming to elevate traditional loyalty programs to new heights.
In partnership with SmartMedia Technologies, Visa is tapping into the technology to deliver a more immersive consumer experience. This includes gamified giveaways, augmented reality treasure hunts, and new methods to earn and redeem loyalty points.
More Engaged Experiences
As consumers expectations for loyalty programs evolve, traditional points-based systems are no longer enough. The demand extends to more immersive experiences and engaging activities, evoking stronger emotions and thereby enhancing overall satisfaction and participation. A survey conducted last year highlighted this shift, with 77% of respondents expressing a desire for real world experiences, and 60% seeking curated experiences tailored to their individual preferences.
“Our new innovative digital loyalty solution empowers brands to reward customers not only for their transactions but for their active engagement, paving the way for secure, seamless and immersive digital and real-world experiences at their fingertips,” said Kathleen Pierce-Gilmore, SVP and Global Head of Issuing Solutions, Visa, in a prepared statement.
Loyalty Programs Must Evolve
The global loyalty management industry, currently valued at $5.6 billion, stands as a highly-lucrative income stream for brands, poised to quadruple by the end of 2029. For businesses to thrive in this competitive space, they must stay attuned to consumer needs—and it goes beyond the traditional points-earning model. According to a study from Runa, 55% of loyalty program members prioritize flexibility in redemption options.
Effective loyalty program solutions should address key customer pain points, ensuring a smooth experience. In that same study from Runa, 65% of respondents identified difficulty in earning rewards as the top reason for leaving a loyalty program. Customers shouldn’t encounter unnecessary hurdles to access brand perks; offers should be seamlessly featured at the point-of-sale, eliminating the need for intricate sign-up processes on apps or websites. To foster loyalty, any friction should be removed.
Finally, personalization is emerging as another crucial factor in loyalty program success. Customers crave tailored communications from their preferred brands, specifically centered around products and services that align with their interests. Recommendations can be curated based on past purchases, browsing history, and shared interests with other customers, creating a personalized experience that resonates with each individuals’ unique profile.