How Blockchain Technology Powers Loyalty Rewards
- Posted on March 2, 2022 by natalia
- Reading time about 5 minutes
It’s the age of crypto leading the race, where blockchain governs every bit of the movement with wide-scale technology adoption across services. Setting extreme transparency across various transactions, Blockchain is here to stay, sometimes as the right solution to cyber-security or simply an organized system to manage a process.
While customer loyalty rewards programs have always been used as an imperative aspect to bring in more customers onboarded, ever heard about blockchain technology facilitating in powering customer loyalty? With the technology taking over, blockchain-based customer loyalty programs are implemented to encourage customer engagement. The reason why blockchain-powered customer loyalty programs are considered imperative is major because of their distributed and secured nature, which offers an impactful solution to various problems that numerous large customer loyalty programs are facing as of now.
Blockchain is the next frontier of loyalty and there’s so much to prove the same! Brands are encouraged to retain their loyal customers through crypto rewards. In this article, we will study Crypto Rewards, Blockchain-Based Ecosystem, and areas where blockchain technology can do wonders.
Understanding Crypto Rewards
Crypto Rewards are basically crypto cashbacks. Acting as an integral part of loyalty programs that assures to deliver rewards in cryptocurrencies instead of delivering the same in real currency. In comparison to the regular loyalty programs, there’s a difference in terms of crypto rewards which is availing benefits across numerous services and goods. Let’s talk about how exactly crypto rewards work. So, these rewards work on a principle of decentralization that governs cryptocurrencies. They’re easy to integrate with any existing loyalty program and work through smart contracts that bring them together as partners on a secular blockchain network. Today, the eCommerce and even the banking industry is ready to offer crypto rewards to their loyal customers which are not limited to restricted usage but quite an implemented & preferred option as of date.
What’s a Blockchain-Based Rewards Ecosystem?
Blockchain is the new normal when it comes to security and transparency. With Bitcoin already ruling over there are other cryptocurrencies including Ethereum have been gaining immense popularity through non-fungible tokens. Blockchain can be considered as the most widely used option for records management, digital transactions between two parties, and managing all of that in an extremely secured way! In a blockchain-based ecosystem, customers are offered crypto-cashback across multiple vendors and both vendor and customers can reap the benefits. It helps customers by granting them complete access to multiple reward programs through a single wallet, coming out as the most preferred means for maintaining loyalty going forward.
How Blockchain Technology Can Deliver Improved Customer Experience
- Offering a Smart Approach to Customer Loyalty Programs
It is evident that most of the customers are associated with numerous loyalty programs but are active amongst a few only! The reason is, only a few loyalty programs provide the right rewards on regular transactions which are useful in the long run. Blockchain here can be of great help as numerous brands either sharing the same category or having a similar parent company can introduce a consolidated loyalty program wherein, they can give crypto rewards, to be redeemed at any chosen brand in a similar league or the pre-decided panel. Blockchain technology can help customers to earn rewards and redeem the same across various brands.
- Saves Cost and Manages Complexity
Customer loyalty programs are becoming complex and tough to manage. As brands are making an effort to make the programs more compelling, they’re adding numerous partners and suppliers to their loyalty ecosystem. In turn, making the entire program more expensive and unmanageable! Here, a blockchain-based solution can again be of great help! It can not just improve the operation and execution of loyalty programs but help extensively in reducing the overhead cost involved. Also, it is a super-easy route to share data and loyalty program perks without having involved with the hassles of individual agreements and integrations for every partnership.
- Data Protection & Security
Cyber security has always been a matter of concern as data breaching and theft can lead to huge losses. Many brands have to suffer due to data loss or customer data leaks. Blockchain as already known is a highly secured and private network. The customers who’re willing to participate in the brand’s loyalty program, a stat says around 70 percent of them express concerns about the vulnerability of companies to cyber-attacks. Blockchain can be chosen as a trusted option to keep the customer and brand’s data highly secured and facilitate the technology applications to deliver value to both business and customers as well.
The world is running behind blockchain technology and surely the loyalty industry needs a lift up for better service offerings along with the adaptation of the leading technology in power. It’s only a matter of time, we are ranging closer to a blockchain-lead customer loyalty era wherein the technology will lead the race bringing smart outcomes for the brands and customers all together.