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Blockchain To Improvise Loyalty ProgramsBy Divya Singh | Aug. 4, 2018, 2:23 p.m. GMT
The importance of loyalty programs is known to all marketers. A loyalty program brings high returns to the program, as existing customers spend more than new ones. It helps organizations to encourage customers to continue shopping or using the services associated with loyalty programs. Blockchain has entered this field to help realize the full value of loyalty programs.
Importance of Loyalty Program
Apart from revenue companies getting a loyalty program, there are plenty of other benefits too. With a loyalty program, organizations can track anonymous purchases, evaluating customer preferences, and leverage buying trends to build strategic decisions of the business. We can tell it's a Holy Grail of marketing strategies, one that the entire world will use.
How Does Blockchain Help Loyalty Programs?
An individual has multiple loyalty programs from various platforms, such as grocery stores, shopping malls, airlines, hotels, restaurants, etc. Sometimes, they are unable to keep track of all the reward points they have earned and this is likely to impact organizations. We can take this as a problem statement of loyalty programs, which Blockchain can help with.
If we were to consider Blockchain here, all the reward points for a customer can be maintained on one decentralized platform. Every organization and individuals who are part of the platform will be able to keep the tack of their reward points and use them. The users will be able to use all their reward points, which they have collected through months of purchasing. Organizations will be able to retain customers and get the best of the program.
Blockchain-based Loyalty Programs
- Deloitte introducing blockchain as customer loyalty solutions:
Deloitte is exploring the full potential of the Blockchain technology to realize the full value of a customer loyalty program. Any organizations from banks to airlines can use this reward program.
Key benefits of the program are reduced cost, enabling a frictionless system, making the process almost real time, providing a secure environment, and creating unique business opportunities. You can read the detailed plan of the program here.
- Wipro using Blockchain for their loyalty management program
Wipro is trying to solve the shortcomings of loyalty programs. Building a loyalty program is expensive and difficult; an improper implementation can lead to customer dissatisfaction. Wipro's Blockchain solution can help in developing an open decentralized loyalty management platform that will help in building three key aspects: point treasury, redemption operations, and rule-based smart contracts. Read more about it here.
- Element a new cryptocurrency
The main goal of the element cryptocurrency that uses X11, a chained hashing algorithm, is a decentralized network to unify the fragmented royalty reward space to make it more valuable.
These are a few examples to brief you about the use-cases of Blockchain for a loyalty program. There are a lot of programs which are not mentioned here, but you can mention them in the comments section.