Loyalty programs do not reach their full potential due to low retention and redemption rates and high costs. Today, let’s talk about How blockchain rewards program – don’t miss the valuable information.
1. Knowing about blockchain as a customer loyalty solution
It’s not revenue or profit, it’s loyal customers who are the main driving force for companies to grow. Customers decide how and when a company should make progress. As customers are growing rapidly, they are also still ailing from underperformance. There are several reasons for this, but first of all we believe that the incompetence of the unified management system is the main cause of the inactivity of the members.
In this installment of our Deloitte Financial Services Hub series on blockchain, we explore how this powerful technology can help realize the full value of loyalty programs. Any organization (from banks to airlines) with a rewards program can recognize the performance gains, cost reductions and increased brand loyalty that this powerful technology can deliver.
2. Key benefits for loyalty rewards programs
It’s not revenue or profit, it’s loyal customers who are the main driving force for companies to grow. By building loyalty rewards programs, companies aim to enhance the customer experience. However, in many cases, the opposite happened. Blockchain implementations can take customer experience to the next level:
2.2. Reducing costs
While blockchain comes with an upfront cost, we believe the cost savings in trade-offs will be determined on three key levels – system management, transactions, and customer acquisition. A blockchain-based loyalty rewards program that will reduce system administration costs with smart contracts that report secure, tracked, transparent transactions to legacy systems, reducing costs regarding errors and fraud.
2.2. Enabling a frictionless system
A logistic credits a customer’s reward in the same digital wallet from which it redeems the reward for the hotel. Through a decentralized, decentralized technology solution, blockchain is centralizing customer loyalty programs. Loyalty providers determine how and by whom customers use these rewards, but from a consumer perspective, accessing and managing them is practically painless.
2.3. Making the process near real-time
Blockchain could allow multiple stakeholders to record and access a transaction in near real-time, increasing the chance that a loyalty rewards program provider can reduce coordination inertia to credit scores.
2.4. Providing a secure environment
Blockchain creates an immutable and time-stamped distributed database entry of every transaction ever made, making each transaction and its record easily traceable, but also making them immutable, preventing double-spending, fraud, abuse and any other kind of manipulation of the transaction.
2.5. Create a unique business opportunity
When it comes to building an interconnected loyalty network, large loyalty program providers with well-developed programs will have a unique opportunity to offer unique rewards. value-added services for other businesses.
Hopefully, through this article, you have had a clearer and more accurate view of blockchain and the revolution of Blockchain technology and How blockchain is revolutionizing rewards program. I Hope you will take wise steps on the journey of exploiting and investing this valuable resource.
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