Bakkt Study Reveals Shift in Loyalty and Rewards Preferences Toward Crypto

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Crypto buyers and those with income over $100,000 are more likely to report greater loyalty enrollment in 10 or more programs.

Institutional digital asset platform Bakkt has released the results of its study of 1,000 US consumers who are members of three or more loyalty programs, finding out about the evolving nature of crypto preferences in the loyalty and rewards landscape.

The report, “Bakkt Loyalty and Rewards 2022 Outlook Study”, identifies aspects that attract and influence behaviors and demands.

The study results signal a new challenger to making money among average US consumers, the study found that cryptocurrencies are changing consumer behavior:

-72% of those who have purchased crypto at least once in the past six months are likely to redeem loyalty points for cryptocurrency;

– About half of crypto buyers are interested in earning cryptocurrency instead of points.

Consumer perception of crypto rewards seems to be favorably influenced by their relationship with cryptocurrency. Those who reported buying crypto see greater appeal in crypto rewards.

Income level was also found to be a driver of interest in crypto, with 58% of consumers with an income above $100,000 saying they are likely to redeem points for cryptocurrency.

Nancy Gordon, Chief Product Officer of Loyalty & Rewards at Bakkt, said, “We are seeing in real time the importance of cryptocurrency in transforming the customer experience, including an increase in demand for more options. flexible such as redeeming points for cryptocurrency or instead of earning cryptocurrency as an option. The ecosystem is growing rapidly, and brands can be at the forefront of loyalty innovation by introducing crypto rewards that deliver the richest experiences consumers crave.

The survey, which was commissioned by Bakkt and conducted via an online survey tool in December 2021, found that crypto buyers and those with incomes above $100,000 are more likely to use programs loyalty in major categories, over-indexing the average US consumer in hotel, gas, travel and financials.

Crypto buyers and those with income over $100,000 are more likely to report greater loyalty enrollment in 10 or more programs.

When it comes to the appeal of crypto, 43% of US consumers who trade crypto do so for the long-term returns, while 35% see it almost as a “get-rich-quick scheme.” The majority, 51%, also see the value of earning cryptocurrency in addition to loyalty points.

Respondents who buy crypto cite multiple exchange options, unlocking special loyalty statuses by reaching milestones in multiple programs and earning cryptocurrency instead of points based on their primary loyalty program needs.

“Among consumers who said they were not likely to redeem points for crypto, 44% responded that the biggest barrier to exchanging cryptocurrency is understanding what can be purchased. Financial literacy and consumer understanding is the divide that separates consumers from trading cryptocurrency and harnessing new ways to monetize and spend digital assets,” the Bakkt report said.

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