Gen Z’ers, also known as Digital Natives, are more obsessed with brand loyalty than any other generation. Their loyalty to brands is largely centered around the incentives and social capital they receive from identifying with a brand - which is something the crypto/web 3 space encompasses.
Cryptocurrencies have given users a new way to earn without actually working. One of these methods of passive income through crypto are crypto reward programs, which reward users with crypto for small tasks like signing up, watching ads, or anything else that usually involves microtransactions.
On that note, let's learn how crypto rewards help win and maintain Gen Z brand loyalty;
What Are Crypto Reward Programs?
Crypto reward programs are systems set up by businesses to encourage customer engagement in cryptocurrency by introducing crypto incentives.
Crypto reward programs offer customers multiple avenues of earning crypto; this is especially popular with those that are interested in holding crypto for the long term.
Types Of Crypto Reward Programs
Crypto reward programs can take on different forms, here are a few;
Crypto Reward Card
Another crypto reward program comes with the crypto credit card which offers users a percentage back based on the transactions made with the card. Reward cards are not a new concept but are now introduced into crypto with the crypto rewards cards.
Crypto credit cards work like other credit cards the main difference being that transactions are made in cryptocurrency and crypto reward cards offer users crypto rewards for crypto spent on the card.
Staking
Staking involves committing your crypto assets to a blockchain as a means of verifying transactions. As a reward for staking you are offered cryptocurrency. It helps maintain the blockchain and is an easy way to earn interest on your crypto, it is also less complex when compared to mining.
Referrals
Another crypto reward program is the referral program, a lot of crypto exchange apps in order to bolster user engagement offer referral programs where you get crypto as a benefit of registering, getting people to register, and carrying out transactions on the platform, some also offer you free crypto transactions as rewards due to the fact that the charges for transferring cryptocurrency can be outrageous.
Crypto Games
Crypto games that allow players to earn crypto are also growing massively in popularity. Titles like Axie Infinity and Plant vs Undead can net players the occasional payout for playing their games. In these games, you can earn virtual NFTs (non-fungible tokens), which can be cashed out to a player's crypto wallet.
Crypto Rewards and Gen Z Brand Loyalty
Brand loyalty is an important aspect of any industry. Over the years people have discovered that brands are built on loyal customers so what businesses do is offer their customers incentives so that they keep coming back. Loyal customers tend to purchase more and even refer other customers to the brand.
Gen Z has been at the forefront of emerging technology and makes up most of the engagement in blockchain and decentralized finance. Therefore, it becomes imperative for brands to maintain the activities of Gen Z, and the best way to do so is through crypto rewards.
Start-ups use crypto rewards as a means of advertisement to increase brand awareness and consumer engagement, the benefit of crypto rewards which is earning without putting in so much work has been a major source of attraction to Gen Z ‘the generation of the future’ who love the idea of remote work and making money from home.
Crypto rewards have bolstered the usage of cryptocurrency, introduced new users, and has grown the crypto market while at the same time maintaining current Gen Z users. Interestingly enough, crypto rewards also encourage people in other generations to start using crypto.
