Young consumers may be bored by blockchain loyalty reward programs.
The number of blockchain loyalty reward programs has increased significantly in recent years as both the web3 and decentralized application (DApp) sectors have begun to mature. But the most desirable demographic of consumers, young adults, showed a clear preference for engagement-access models in the focus ecosystem.
Statistics show that participation in most Web3 and cryptocurrency products over the past decade has peaked during periods such as airdrops or other limited incentive windows. While there are many exceptions, most projects that fail to gain traction with users in the first few months after launch tend to underperform.
Loyalty programs
Self-sustaining economies designed to encourage consumerism have existed since the advent of currency and competition. From earning airline miles with credit card purchases to gift cards for Microsoft Pay's browsing incentive program, there's little that businesses haven't tried when it comes to customer retention programs.
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However, their implementation in blockchain and web3 communities in fragmented ecosystems is sporadic and inconsistent. Many projects focus on cryptocurrency rewards that can be redeemed at the time of reception, reducing the incentive to reinvest those funds, while others focus on rewards that are only available on the platform they're on.
However, at a recent roundtable discussion hosted by The Street's Rob Nelson, a panel of insiders, Paul Mikel, CEO and President of REVO Ride Share, Scott Lomu, CEO and President of Element United, and influencer Paul Cuffaro mentioned tokens and rewards. As a key driver of blockchain adoption.
Web3 Workforce Segmentation by Job Type. Source: Consensys
The panel discussed blockchain's potential as a driver of consumer loyalty through the lens of the technology's application to the creative market.
However, as Cointelegraph reports, data from Consense shows that influencers and freelancers make up a small percentage of the total number of people employed in the web3 industry.
Small practice and prediction markets
It's not clear that existing blockchain-based loyalty programs have produced a measurable increase in user onboarding. Most organizations do not release data related to the effectiveness of their marketing efforts.
However, an analysis of the most successful projects currently trending through September 2024 shows that mini-dApps, Telegram games, click-to-earn games and prediction markets are showing explosive growth compared to traditional loyalty programs.
Related: Prediction markets are the killer blockchain application we've been waiting for.
Simple experiences where incentives are invisible or seamlessly integrated into the user interface seem to be gaining a lot of interest among the large demographic born after 1981 in the Web3 and cryptocurrency communities.
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