Loyalty programs are often recognized as one of the most effective ways for a business to retain customers. A recent analytical report claims that blockchain technology has the power to improve customer loyalty and reward programs .
Blockchain implementation will give your business a secure and verifiable record of transactions, especially for the reward programs.
There are many types of traditional loyalty programs, from punch cards to points, and cashback programs. These are well established among businesses and customers. However, both companies and customers have many challenges with respect to the existing loyalty programs
Blockchain resolves problems in loyalty programs
The challenges include difficulty in estimating the liability, the need to create accounts and registers, lack of integration, lack of uniformity among channels, losing track of reward points, limited reward points, and much more.
The blockchain ecosystem is not limited. It involves several different participants .
In blockchain-based Reward System customers are allowed to store their loyalty rewards or crypto coins in a single wallet which they have been rewarded from the network participants.
The accumulated digital currency rewards can then be redeemed from the partner companies.
In a Business-to-business scenario, the business offers their clients a value added service. B2B loyalty programs are more personalized and they depend on their clients’ requirements. For instance, a bank offers loyalty programs to its business client which fits their needs and budgets. This retains the bank’s old customers and attracts new customers.
It also reduces management costs. It enables setting up exchanges with no centralized management.
The companies also face some difficult challenges by losing control over their data while using the traditional loyalty programs, but here in the Blockchain Rewards Platform Development, the data is strictly guarded.
As a final standpoint, blockchain technology can eliminate inefficiencies in traditional loyalty programs and offer customers more excellent value through redemption opportunities from multiple companies.