Recently, Delta Airlines and Singapore Airlines both revamped their loyalty programs by bringing them to the blockchain, a move that has some far reaching implications. It demonstrates the sheer potential of blockchain technology, and they ways that it can radically transform loyalty programs as we know them, making them more useful for customers and more cost-effective for brands.

So how exactly does this new technology grow customer loyalty and change traditional rewards programs? Here are five amongst the many ways that blockchain is revolutionizing the loyalty industry.

Blockchain Provides Real Value

Customers usually complain about lack of rewards options offered by loyalty programs, not to mention the complete lack of cohesiveness. Thus, they abandon these programs, decreasing their likely to go back (i.e. be loyal). But when brands use blockchain technology, they can give tokens tied to digital assets offering their loyal customers real-value rewards.

This way, customers have the opportunity not only to spend their loyalty points with the brand where they earned them, but also with other brands within the ecosystem. Plus, they also have the option to sell their tokens for fiat currency.

Blockchain is Cost-Effective, Cuts the High Customer Acquisition Costs

From the technical implementation through to the reward costs, setting up loyalty programs can be tedious and costly for brands. However, on the blockchain, transaction costs on redemption and issuance of reward tokens are quite low, since there’s no need for a third-party platform.

Better yet, blockchain reduces the management costs because of smart contracts, which simplify and optimize the process. Brands also benefit from gaining access to a platform that’s already filled loyal customers, further reducing acquisition costs.

Blockchain Provides a One-Stop Shop for Redemption and Collection of Points

With traditional loyalty programs, customers often suffer from analysis paralysis — fatigue due to too many choices, leading them to disengage with these programs. Blockchain, on the other hand, provides a frictionless system that customers to conveniently store all points in a digital wallet, easing the experience and encouraging engagement.

There’s also the issue of connection. You see, blockchain connects owners of many different loyalty programs, making all their points interoperable. This way, customers don’t have to keep track of various programs to view their points — instead, they can do it all from one wallet. Better still, customers can connect with other users and exchange points, increasing their utility.

Blockchain Encourages Loyalty by Guaranteeing More Security

Blockchain transactions are secured cryptographically, and each customer has their own private keys. The tamper-proof and immutable nature of this technology makes each transaction is traceable, eliminating misuse of the system and fraud, so customers can feel safe and secure sharing their details with brands.

Blockchain Inspires Customer Engagement and Redemption of Points

Attracting new customers through loyalty programs is often as difficult as implementing those loyalty programs. However, blockchain technology is introduces loyalty at the beginning of every customer’s journey, rather than at the point of purchase.

Moreover, with blockchain these “loyalty points” can increase in value, making them even more attractive. Plus, customers regularly check these loyalty programs to make sure they’re not missing anything, boosting engagement.

Conclusion

There are many benefits to blockchain technology, especially when applied to the loyalty market. It significantly reduces the cost, heightens security, and increases customer engagement, bringing convenience to customers and loyalty to brands.

Now, you can be a part of bringing loyalty to the blockchain. Our Crowd Sale is coming up soon, and you can contribute to help transform loyalty on the blockchain into a reality.

Source: https://bitcoinexchangeguide.com/qiibee-ceo-explains-5-ways-blockchain-customer-loyalty-program-can-boost-business/