February 24, 2022
Landry’s Inc., the parent company of Morton’s steakhouse, Bubba Gump Shrimp and a number of other restaurants, recently introduced the first bitcoin loyalty program in the hotel space.
Backed by bitcoin startup NYDIG, members of Landry’s Select Club earn one point for every $1 spent at any of Landry’s 500 locations, with 250 points translating into a $25 reward. Customers who sign up for the Bitcoin program can track the value of their points and redeem them in $25 reward increments based on market prices.
Trey Zeluff, director of digital asset strategy at Landry’s, said in a statement, “We see bitcoin as a good choice for some of our own cash flow, so we want to offer that choice to our customers as well.”
Covering the launch, The wise merchant identified three unique features of the program:
- The program format incorporates an appreciation factor in the value of customers’ bitcoin points, increasing their relative purchasing power as they mature as members.
- The program provides an interesting test case to potentially prove the power of bitcoin made readily available in exchange for quick-access consumer goods, like food.
- The fact that Landry’s Select Club members are made up of customers from many different brands provides a fertile source of data to better understand how different demographics and audiences respond to cryptocurrency rewards.
A just released study of digital asset platform Bakkt – which last fall in partnership with Mastercard rewards to support crypto rewards – found that of those who purchased crypto at least once in the past six months, 72% are likely to redeem loyalty points for crypto -currency and about half are interested in earning cryptocurrency instead of points.
Nancy Gordon, Product Manager for Loyalty at Bakkt, said GOBankingTariffs“Rewards are an attractive on-ramp to crypto as they upgrade what was traditionally a passive store of value into an active store of value, which has the potential to grow over time.”
Starbucks, Newegg, Whole Foods, Nordstrom, Home Depot, and GameStop are among the retailers currently accepting crypto payments.
DISCUSSION QUESTIONS: Is cryptocurrency likely more attractive to many loyal members than cash back and other traditional rewards? How would you access the pros and cons of offering bitcoin rewards?
“A flexible points model is the way of the future, whether through Bitcoin or not.”