Creating Solana Utility Token-Based eCommerce Loyalty Reward System
Shyft demonstrates how they can use the power of Solana Blockchain to integrate utility tokens as loyalty rewards system for eCommerce websites. Certain affiliate websites have loyalty reward systems in place, where users are rewarded with special points for performing specific actions.
Creating a Solana Utility Token-Based eCommerce Loyalty Reward System in which users can earn rewards and spend extra money by doing things like watching a promotional video, taking surveys, writing a review, or buying or selling products.
Creating a Solana Utility Token-Based eCommerce Loyalty Reward System
Such websites are recognized as reward websites, and they have grown in popularity in recent years. These websites enable their users to begin earning loyalty points, and they can use them to get a variety of gifts, free products, or huge discounts on future orders placed through their website. In return, they want their users to do things like buy or sell products, watch videos, or write product reviews. They generate income through affiliate marketing.
Similar results can also be achieved in the Web3 world using SHYFT APIs. SHYFT APIs can help them build websites, instead of native coins or units, which can roll out actual coins or tokens as rewards that can be later redeemed from the website itself or elsewhere.
Why Blockchain?
The traditional loyalty reward system has its own set of ups and downs, both for the company and for the customer. Customers must manage multiple loyalty programs that are incompatible with one another and operate under different rules. Customers may force to make unnecessary purchases to avoid losing their loyalty points, as most loyalty points have an expiration date. According to the company, these loyalty programs may necessitate a large management team, which may raise maintenance costs. This is where blockchain comes into play, as it has the potential to improve the loyalty system for both businesses and customers. Singapore Airlines and American Express are two companies that use blockchain-based loyalty programs.
With the added advantage of transparency and security, Blockchain-based loyalty programs provide some features which make them an attractive option for companies that are planning to build a customer-appreciated loyalty program.
- Reusable Loyalty Tokens
Blockchain-based loyalty systems use SPL tokens instead of loyalty points as rewards for their users. These tokens can be already existing tokens or new tokens specially created for one particular system (or website). This can make partnerships and collaboration within companies easier than ever. Generally, reward websites, or websites with loyalty-customer program use affiliate marketing to generate their revenue. This makes collaboration with other companies an integral part of their business. Using the same tokens for the parent and affiliate companies clarifies the currency value for both customers and collaborating companies.
- Maintenance Free Infrastructure
Building and maintaining a traditional loyalty system takes time and resources. The cost may rise as the number of loyal customers on the website grows. They can harness the power of Blockchain by utilizing SHYFT APIs. SHYFT provides a set of wallet and token APIs that will assist you in setting up and maintaining a token-based loyalty system on
- Token Autonomy
When they choose a Blockchain-based loyalty reward system, loyalty points are usually replace with tokens or some form of cryptocurrency. Because they have autonomy, this can have a positive impact on the customer’s trust. Customers are the sole owners of the loyalty tokens they have earned. They can do whatever they want with them, including sharing them among themselves or burning them. With the benefit of partnership programs, they can also redeem these tokens elsewhere, reducing the need for unnecessary purchases just to spend the Tokens.
- Crypto Enthusiasts As Potential Customers
Blockchains and Blockchain-based systems are an excellent way to attract Crypto-Enthusiasts, who may also be potential website customers. Blockchains have grown in popularity in recent years, and many users see cryptocurrencies as a lucrative investment opportunity. As a result, a website that rewards customers with cryptocurrencies will quickly rise to prominence and attract crypto enthusiasts and investors. Users may also sign up simply to collect these tokens for the sake of having them in their collection. Or to exchange them for actual currencies, as the tokens themselves will have value.
Indeed, there are multiple lucrative reasons for replacing the traditional loyalty reward system, with a robust and scalable Web3-based reward system using Blockchain.
About Shyft
SHYFT simplifying Solana Development, its lightning-fast Web3 APIs let you launch faster and more efficiently. Easily integrate marketplace, NFTs, tokens, and other blockchain features in your dApp.
SOURCE
https://medium.com/shyft-to/how-to-build-an-ecommerce-loyalty-reward-system-with-utility-tokens-on-solana-part-1-28a398b71ec2
REQUEST AN ARTICLE
