Blockchain can be truly transformative for the Loyalty Program industry with enhanced efficiencies, reduced costs, and enhanced brand loyalty. A number of startup companies like KSLoyalty Platform and few other startup's are implementing the Blockchain Loyalty Program by addressing few key points.
There are 5 Things to know about Blockchain Based Loyalty Program
1, Decentralized Loyalty Program
2, Cost Cutting Efficiencies
3, A real-time Blockchain Loyalty Program
4, Increased security leading to enhanced customer loyalty
5, A Ocean of new opportunities for businesses
1, Decentralized Loyalty Program — A decentralized, trustless ledger would actually centralize the customer’s loyalty programs. This Blockchain Loyalty Program would give Loyalty providers the ability to decide how and with whom the customer uses these rewards. The customer will have the ability to access and manage the ledger with no friction.
2, Cost Cutting Efficiencies — Loyalty programs are expensive and tedious, demanding a significant investment of time and money on both technical implementation and cost of rewards. Blockchain incurs upfront expenses on three major levels–system management, transactional , and customer acquisition. A BC powered loyalty program would reduce costs associated with errors and fraud by using smart contracts which would ensure secure, traceable and transparent transactions.
3, A real-time Blockchain Loyalty Program — One of the inherent features of Blockchain is that it enables the transaction to be recorded and accessed by multiple involved parties in near real-time. This makes the process of coordination between loyalty rewards program provider and consumer more efficient and instantaneous. With Blockchain Loyalty Program, customers won’t have to wait to be rewarded by points but could potentially receive and redeem them in real-time.
4, Increased security leading to enhanced customer loyalty –Transactions on a Blockchain ledger are cryptographically secured. Every transaction ever made on the Blockchain are immutable and time-stamped, thus transactions are easily trackable. No transaction made is irreversible, therefore preventing double spending, fraud, abuse, and any other type of manipulation of the transactions are not possible.
5, A Ocean of new opportunities for businesses — With an interlinked loyalty network, large loyalty rewards program providers will have unique opportunities to offer value-added services to other businesses. A Blockchain Loyalty Program would no longer force customers to spend their loyalty points with a specific brand. Customers can even sell their points, tokens for fiat and spend the money in the real world!