The evolution of customer loyalty and point systems shows no signs of stopping

Continuing from last time, we introduce the 10 major digital trends of 2018 from the "TOP 10 TRENDS" announced by Kara of Dentsu Inc. Aegis Network.

In the U.S. alone, $48 billion worth of various points are issued annually, yet over one-third remain unredeemed.

Customer loyalty has evolved from coupons and cards to apps. Purchases and points are now aggregated and easily redeemable. Numerous apps exist on both brand sites and information gathering sites, securely storing user transaction data and points.

Points are now linked to consumers' personal information.
Starbucks' points program has over 13 million members in the U.S. alone, growing at a rate exceeding 10% annually. Many startups are also striving to obtain consumer data. The app "Drop," with 500,000 users in the U.S. and Canada, integrates with users' payment cards to match receipts and collect redeemable points. The European payment app "Yoyo" can integrate not only with payment cards but also with bank accounts, automatically collecting points.

The next step may be the birth of brand currencies.
Burger King, taking inspiration from Bitcoin, created its own cryptocurrency, "Whopper Coin," and launched the service in Russia. Users can collect coins using the dedicated mobile app "coin wallet."

The messaging app "Kik" also issued its own cryptocurrency, "Kin." This is exchangeable for cash and can be used for payments on websites. For example, users can create branded chatbots or gain attention through internet memes, earning payments from brands.

Advances in technology are enabling smoother calculations and point processing, driving the evolution of customer loyalty. Loyalty apps will increasingly collect various information—transactions, sign-ups, payments, points—and online and offline experiences will likely become unified, centered around mobile apps. Furthermore, powerful brands may seek to create their own global currencies.