Building Brand Loyalty Programs Crypto-Style with Element Zero

Brands can now reserve a turn-key stable coin through the Element Zero platform. Branding, building your brand and creating brand awareness are concepts we don’t always explore in the cryptocurrency world. But, smart businesses should be taking notice of the tremendous power a loyalty program built on cryptocurrency can bring to their bottom line.

Before beginning to map out a loyalty program built on crypto, it is important to understand how cryptocurrencies work, as not all currencies carry the same stability of value. This is because, currently there are three major methodologies that back cryptocurrencies and each of these methods tie that value to an outside source:

1 – Cryptocurriences that are pegged to traditional assets such as fiat or gold. Stablecoins that rest on this method are centralized and their value rises up and down with the assets that back the platform.

2 – Stablecoins whose value is tied to a fund of other cryptocurrencies, which is intended to create stability by spreading out the risk across multiple coins in this asset class. Again, in this method, volatility can occur and can be much more dramatic, as we saw in the Crypto Winter, when the value of Bitcoin alone fell by almost 70%.

3 – The third methodology uses algorithmic coins that are supposed to be balanced by the expansion and contraction of the coin supply, based on market behavior. The risk to value in this scenario is similar to the second methodology, and volatility remains high.

In essence, all three methods carry the same type of risk we see with government-issued monies. The value of a dollar can go up and down based on inflation. Another government may fall into political un-reset and its currency becomes devalued in the worldwide marketplace. As a result, a business owner that builds a loyalty or affinity program on cryptocurrencies backed by these current methods will see their profits rise and fall based on these fluctuations.

So, where is the value in building a loyalty program on cryptocurrency if these stable coins are not really stable? That’s a problem we sought to solve by building the Element Zero Network. We recognized that to be truly stable, a coin must be decentralized – meaning that its value cannot be tied to any traditional or outside source. If a coin is built on a pure platform, that doesn’t rely on any other metric to determine its value, it can be truly stable and eliminate the probability of volatility in the first place.

This is the premise behind the Element Zero Network’s new Stability Methodology Protocol. Coins that are developed on this platform will always remain stable and carry a fixed face value as our protocol is enforced using a two-way smart contract system. This system ensures that whatever you trade on the platform, be it alternative crypto coins, goods or services, the smart contact will ensure that each participant in the transaction receives exactly the same value match, no matter what. The stablecoin’s value never changes or fluctuates with inflation. If you purchase one coin for $1, that coin value forever remains $1.

With this stability in mind, imagine the possibilities in building a loyalty program. First, many affinity programs are built on credit card platforms which charge hefty transaction fees to businesses. Large fees are out with coins created on the Element Zero Stability Methodology Platform, so a business realizes immediate savings.

Next, this stablecoin is not subject to inflation or market fluctuations, so what you see is what you get. This is especially helpful in creating budgets for a loyalty program.

And third, a stablecoin built on this platform makes it easy for a company to build its brand relationship with a customer. The coins can be branded with a company logo. The customer carries the coins in their crypto wallet. When they do business with you, it’s easy to reward customers with additional coins – much like the “points” system of credit card and other affinity programs. But the customer doesn’t have to “wait” to accrue a certain number of points to reach a rewards tier or to be eligible for an “award.” This provides instant gratification to the customer and creates a bond of trust and goodwill.

If you are a business waiting on the sidelines to jump into the cryptocurrency marketplace, don’t wait too much longer. With Facebook, JPMorgan Chase and Amazon announcing their plans to build stablecoin networks, you can be assured that cryptocurrency and the underlying blockchain are here to stay.

Start planning your crypto affinity program now so you can be a leader in attracting and retaining customers who appreciate the convenience of crypto. For a start, reserve your brand symbol, which protects your brand identity while growing your base. Next, take an opportunity to experience a transaction on the Element Zero Stability Platform, here. Be an early adopter of this new way of attracting and retaining customers without the risk of inflation or other cryptocurrency value fluctuations – the time is now.