How Blockchain Technology is Transforming Customer’s Loyalty Reward Program
- Posted on March 13, 2023 by Robert
- Reading time about 5 minutes
Today’s businesses and retailers can’t underestimate the value of a loyal customer. Customer acquisition costs are rising, and competitors are always spreading their wings to attract competitors’ customers. Building a strong cadre of customers who value your brand above all makes a huge advantage.
Blockchain loyalty programs allow businesses and companies engaged in eCommerce, FMCG, banking, hotels, etc. to take advantage of blockchain technology in their customer loyalty programs. It adds value in rewarding your customers through point treasury, point exchange operations, and rule-based intelligent contracts.
Why Blockchain Loyalty Program?
Even traditional businesses have been using loyalty programs for decades. Traditional loyalty programs have the capability to range from punch cards to points loyalty programs, as well as cashback programs that are well-established with businesses and customers. Traditional loyalty programs are not able to meet the challenges for both companies and their customers due to a lack of gaps, updates, and partiality in the reward system.
Blockchain loyalty programs are not intended to replace traditional loyalty programs, but rather to act as and improve the interaction of customers with businesses. Blockchain-based customer loyalty reward program reduce losses from fraud and error as data recorded are immutable and incorruptible by anyone. It maintains a public database and records all transactions of the customers within your business.
Scalable customer loyalty and rewards management software in a multi-company wallet can easily enhance customer loyalty. Therefore, they can redeem their points faster and more efficiently while reducing costs per transaction of the business.
Why Blockchain Is The Future Of Customer Loyalty Programs?
Blockchain technology in customer loyalty programs keeps customers’ records and makes them more secure in a decentralized blockchain ledger. Thus, it makes the reward system free from fraud, inflexibility, and clutter issues.
Blockchain-powered customer loyalty programs are gaining traction from big corporates and organizations around the world. It makes their loyalty program looks unique and more attractive for millennials and Gen Z customers.
All the transactions recorded in the blockchain loyalty program software are immutable and encrypted. Thus, it makes a more secure platform for businesses as well as customers.
Blockchain technology can be used to enable transactions in loyalty schemes. Thus, it reduces the cost of administration and makes it highly functional for the customers to redeem and exchange the rewards.
How Does Blockchain Technology Transform Customer Loyalty?
There are too many loyalty programs each with its way of earning points and mechanism to treat your customers. With blockchain technology, businesses and organizations can decentralize their loyalty programs while customers can enjoy the full benefits of blockchain technology.
Customer loyalty is one of the primary drivers of any organization and business. Integrating a Blockchain Loyalty Program helps you in building loyalty rewards programs to heighten the customer experience. The implementation of blockchain can drive the customer experience to the next level.
Builds A Frictionless System
Blockchain decentralized technology solution is centralizing the customer’s loyalty programs. As a business owner, you can easily curate the loyalty program and decide the best loyalty program that aligns with your business needs. Thus, blockchain-based loyalty programs show how and with whom the customer uses these rewards. Thus, you can easily curate the best customers’ rewards in the same digital wallet to access and manage their rewards.
Reduces The Associated Costs
Blockchain loyalty programs reduce your system management costs with smart contracts. Scalable customer loyalty and rewards management software program costs won’t take years and hundreds of thousands of dollars to implement and maintain. Blockchain’s native ledger keeps you updated with loyalty records. Thus, you can easily cut costs in system management, transactional, and customer acquisition while reducing costs associated with errors and fraud.
Real-Time Rewards And Interaction
Blockchain-based customer loyalty reward program not only incur upfront expenses but also enable your customers to make a transaction and earn rewards and points in real-time. Their transaction is also recorded and accessed by multiple involved parties in near real-time. Thus, you can easily reward them with loyalty points and deliver them curated rewards instantly when they make a transaction. Thus, preventing double spending, fraud, and any other type of manipulation of the transactions while delivering them real-time rewards.
Safe And Secure Transaction
Integrating a blockchain-based loyalty program creates an immutable and time-stamped distributed system in which all the necessary information and transactions are stored on the blockchain ledger. It prevents customers from double fraud by tracking every single transaction ever made and is easily traceable. The time-stamped database entries are irreversible preventing issues of fraud and transaction manipulation and making sure that there is less chance of data breach. Thus, blockchain loyalty programs secure, track, and integrate transparent transactions for the customers.
Create A Unique Customer Experience
Loyalty programs help you in delivering a better customer experience. Customer loyalty reward program, when interlinked with the blockchain network create a well-developed program that delivers unique opportunities to offer value-added services to other businesses. Thus, your loyalty rewards program provider can cut through coordination inertia to credit points faster and delivers more freedom to customers to redeem their tokens, including being able to redeem them in smaller increments.
The loyalty program is changing along with customer expectations. Blockchain loyalty programs have the capability to meet the customer pain points and easily meet the need of minimal gen Z. Many brands across industries are taking advantage and exploring the capabilities of blockchain technology in their loyalty programs.
What are you waiting for? Build your own blockchain-powered loyalty program for your brand or business. We at Novus Loyalty are the best blockchain loyalty program development company. We help you integrate the latest technology to illuminate the features of loyalty programs to scale more sales and build more loyalty. Connect with us today!