The average U.S. consumer is now part of more than 15 loyalty programs, yet engagement in these programs is declining. A significant 44% of loyalty program members drop out due to a lack of personalization, highlighting a gap between consumer expectations and brand offerings. Younger consumers, particularly those aged 18–34, are more prone to cancel memberships, with over half planning to do so within the next year.

Brands face challenges as they invest heavily in loyalty initiatives that often fail to retain customers. Traditional programs, typically offering points or generic discounts, do not effectively drive meaningful retention. Rising customer acquisition costs, inefficient cross-brand promotions, and partnerships hampered by a lack of trust and transparency further complicate the landscape.

Hang’s Blockchain-Based Solution

Hang is addressing these challenges by leveraging blockchain technology. Built as a dedicated Layer 1 blockchain on Avalanche, the Hang L1, known as the Brand Protocol, is transforming enterprise marketing infrastructure. By bringing customer engagement on-chain, Hang allows brands to run verifiable, automated promotions across partner ecosystems while maintaining control over customer data and privacy.

This approach is not merely an evolution of the loyalty model but a complete rebuild on Avalanche. Hang’s platform, initially an NFT ($0.00)-powered rewards system, has expanded into a comprehensive marketing and customer data suite. It is designed for mid-market and enterprise brands, including restaurants, retailers, and global consumer businesses.

Companies like Ulta Beauty, ASICS, and Cinemark, along with restaurant groups such as Roam and Boba Guys, are already utilizing Hang’s capabilities. The platform enables brands to unify data, personalize offers, and deliver seamless customer experiences across all channels.

Innovative Features and Benefits

Hang’s platform integrates identity resolution, AI-driven segmentation, gamified engagement, and on-chain transparency into a cohesive system. By connecting every interaction to a verifiable on-chain record, Hang provides brands with real-time insights into loyalty drivers and offers customers more meaningful engagement opportunities.

The platform addresses the issue of fragmented data by cleaning and consolidating customer information, creating a comprehensive view of each customer. Hang’s campaign builder simplifies segment creation using natural language, while AI suggests additional segments based on various factors. This reduces friction and saves time for marketing teams.

Interactive features like raffles, quests, and mini-games make loyalty programs dynamic and engaging. Every campaign includes a secure audit trail recorded on Avalanche, ensuring transparency and accountability. This system allows for trustless cross-promotions between brands, with smart contracts and a “Brand Oracle” verifying redemptions and settling payments automatically.

By using Avalanche’s technology, Hang offers a scalable, measurable, and seamless bridge between digital identity, real-world interaction, and brand trust. This innovative approach sets a new standard for a more connected and intelligent economy. More details on Hang’s transformation of loyalty and customer engagement can be found here.

Why This Matters: Impact, Industry Trends & Expert Insights

Hang is transforming loyalty programs by integrating blockchain technology on Avalanche, addressing declining engagement and personalizing customer interactions.

Recent Currency Alliance insights highlight the trend of using blockchain to enhance transparency and security in loyalty programs. This aligns with Hang’s approach of using blockchain to create verifiable, automated promotions and improve trust in customer data management.

A Zebpay report emphasizes blockchain’s potential to decentralize rewards and reduce operational costs. This supports Hang’s initiative to leverage blockchain for more efficient loyalty management and cross-brand promotions.

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