Customer loyalty is critical in today’s competitive consumer society. There are well over one billion websites today, many of which sell goods and services to the end customer. With such global volumes of competition, retaining your customers – keeping them loyal to your brand is of critical importance.
Blockchain technology enables trust and trust is a key part of loyalty. If a customer trusts the brand, they will become more loyal, spend more and refer more customer to your brand.
Let’s look at a few use cases for loyalty using Blockchain technology;
- More flexible and valuable reward schemes for the customer
- Cross Industry scheme –allowing customer to interchange rewards:
- Retailer, Brands, Airlines, Hotels, Restaurants etc
- Real time rewards – using Blockchain technology to issue the benefits of the reward schemes in real time
Loyalty benefits and outcomes
- Real time rewards issue and tracking
- Reduced system management costs via smart contracts removing costs associated to error and fraud.
- Opportunity to create a ‘wallet’ for customers, a centralized, frictionless system for all of the customer’s schemes, where points are universal and accumulated in one place
- Relieve balance sheet liability, where revenue is attributable to value of loyalty points must be deferred until points are redeemed.