Retailers and ecommerce sellers can’t underestimate the value of a loyal customer. With customer acquisition costs rising and new competitors always waiting in the wings, building a strong cadre of customers who value your brand above all others and are willing to spread that message to their friends is a huge advantage.
Blockchain technology can solve for some of the issues with traditional loyalty programs by connecting owners and users of multiple programs.
This technology can simplify the process of applying and keep consumers from having wallets overflowing with rewards cards or passwords to multiple different reward accounts.
Through blockchain, users can receive and redeem loyalty tokens that are interoperable across multiple programs.
Key benefits for loyalty rewards programs
Loyal customers are one of the primary drivers of any for-profit business. By building loyalty rewards programs, companies aim to heighten the customer experience. In many cases, however, the opposite has occurred. The implementation of blockchain can drive the customer experience to the next level, and here’s how:
- Reducing costs
Although blockchain incurs upfront expenses, we believe that the trade-off cost savings will be identifiable on three major levels–system management, transactional, and customer acquisition. A blockchain-based loyalty rewards program should reduce system management costs with smart contracts that report secure, tracked, transparent transactions to legacy systems, reducing costs associated with errors and fraud.
- Enabling a frictionless system
An airline credits a customer’s rewards in the same digital wallet from which he/she redeems them for the hotel. Through a trustless, decentralized technology solution, blockchain is centralizing the customer’s loyalty programs. Loyalty providers decide how and with whom the customer uses these rewards, but from a consumer perspective, his/her ability to access and manage them is practically frictionless.
- Making the process near real-time
Blockchain can enable a transaction to be recorded and accessed by multiple involved parties in near real time, increasing the chance that a loyalty rewards program provider can cut through coordination inertia to credit points faster.
- Providing a secure environment
Blockchain creates an immutable and time-stamped distributed database entry of every single transaction ever made, making each transaction and its record easily traceable, but also rendering them irreversible, preventing double spending, fraud, abuse, and any other type of manipulation of the transactions.
- Creating unique business opportunities
At the onset of building an interlinked loyalty network, large loyalty rewards program providers with well-developed programs will have unique opportunities to offer value-added services to other businesses.
Sportcash One offer to Clubs and Brands an innovative set of products for an amazing Loyalty program, we can help you to raise more funds and engage with fans and customers, get in touch with our Team and learn more about our offert.