When consumers are willing to buy from one brand over another – that’s brand loyalty. The fact is that no one is 100% loyal to anything but customers respond with loyal behaviors when they feel engaged and rewarded.
Acquiring a new customer can cost five times more than retaining an existing customer.
The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
The above statistics shows how importance it is for merchants to develop loyalty programs. Traditional loyalty programs are designed with points and coupons but they have been becoming complicated, difficult and expensive than they should be. The fact that consumers constantly bombarded with random offers, downloadable coupons as well as having to carry multiple loyalty cards, etc. makes it too hard for the model to success. As such, the old traditional loyalty system is inefficient, has too much cost, friction and too little access to powerful data.
With the advent of Web3, we believe there must be a better way to build a loyalty system.