Below, we examine two case studies that reflect the benefits, and potential pitfalls, of token-based rewards programs. This approach can bring powerful benefits, especially token customizability, but it can also bring risks. More recently, companies have experimented with the creation of tokens specifically for their rewards programs.

Many token-based rewards programs involved delivering cashback in the form of bitcoin or other major crypto assets, seeking to capitalize on growing customer interest in owning cryptocurrencies.

With the rise of cryptocurrencies in the recent decade, innovators have seen the potential of combining blockchain technology with the established rewards model, paving the way for crypto rewards.

In 1986, Discover launched the first cashback program, offering a radical degree of transparency in the distribution of its rewards.

In 1981, American Airlines introduced the AAdvantage program, initially awarding free flights to a select list of frequent American customers.

The earliest customer rewards programs were highly manual in 1891, the Schuster and Company department store in Milwaukee began issuing rewards stamps to customers that paid with cash (as a reward for not paying on credit).

We can highlight 3 examples of the early customer rewards experience: The history of customer rewards demonstrates changing ideas about how to encourage loyalty and encourage desirable consumer behavior while still delivering a seamless and positive customer experience.

Brave rewards tokens