Qiibee CEO Explains 5 Ways Blockchain Customer Loyalty Program Can Boost Business
5 Ways Blockchain Can Grow Customer Loyalty and Help Businesses with Better Engagement
With Delta Air Lines and Singapore Airlines introducing loyalty programs based on blockchain just recently, it demonstrates that blockchain has huge potential to radically transform the traditional loyalty programs as we know them to more useful and cost-effective ones for both customers and brands.
So how’s this new technology helping grow customer loyalty and changing traditional rewards programs? Here are 5 ways:
- 1 5 Ways Blockchain Can Grow Customer Loyalty and Help Businesses with Better Engagement
- 1.1 Blockchain Provides Real Value
- 1.2 Blockchain is Cost-Effective, Cuts the High Customer Acquisition Costs
- 1.3 Blockchain Provides a One-Stop Shop for Redemption and Collection of Points
- 1.4 Blockchain Encourages Loyalty by Guaranteeing More Security
- 1.5 Blockchain Inspires Customer Engagement and Redemption of Points
Blockchain Provides Real Value
Customers usually complain about lack of rewards options on brand’s loyalty programs, not to mention lack of cohesiveness. This makes them abandon such programs, something that in turn hurts the businesses. With the blockchain technology, brands can give tokens tied to digital assets, making them valuable in more sense than one.
Customers can not only spend their loyalty points with the brand they got them from, but also with other brands within the ecosystem. They also are able to sell their tokens and get fiat currency, and then spend that in the real world.
Blockchain is Cost-Effective, Cuts the High Customer Acquisition Costs
Right from the technical implementation through to the reward costs, loyalty programs tend to be tedious to set up and expensive for brands. They demand a significant amount of money and time to implement. However, on the blockchain, transaction costs on redemption and issuance of reward tokens are quite low, since there’s no need of a third party.
Better yet, blockchain further reduces the management costs because of the smart contracts, that simplify the process and optimizes it. Brands also benefit from gaining access to a platform with already loyal customers, something that also reduces acquisition costs.
Blockchain Provides a One-Stop Shop for Redemption and Collection of Points
With traditional loyalty programs, customers usually suffer from fatigue because of the many programs available out there. This in turn leads to program inactivity. Now blockchain provides a frictionless system, allowing customers to store all their points in a digital wallet conveniently, something that encourages engagement.
There’s also the issue of connection. You see, blockchain connects owners of loyalty programs to make their points interoperable. This means that customers don’t need to keep track of plenty other programs to view their points, and can do all that from their respective wallets. Better still, customers can connect with other users and exchange the loyalty points, increasing their utility.
Blockchain Encourages Loyalty by Guaranteeing More Security
Transactions on the blockchain are secured cryptographically, and participants of loyalty programs have their own private keys. The tamper-proof nature and immutable nature of this technology means that each transaction is traceable, eliminating misuse of the system and fraud. This make customers feel more comfortable with the brands and can share their details as well as execute transactions confidently.
Blockchain Inspires Customer Engagement and Redemption of Points
Attracting new customers through loyalty programs is as difficult as setting them up. However, blockchain technology is changing this by introducing loyalty right at the beginning of the journey of every customer, instead of at the point of purchase.
Moreover, the fact that loyalty points could increase in value and offer even more attractive rewards for customers makes them excited. Customers also feel obliged to keep checking on their loyalty programs to ensure they don’t miss anything.
The merits of blockchain are immeasurable, especially when it comes to tackling the inherent issues of the loyalty market. It helps reduce the cost significantly, tackle any security issues experienced in the traditional loyalty programs, and also increase customer engagement. This, for customers, means convenience and loyalty to brands. It’s a win-win situation.