One of the most exciting emerging technologies taking place in our time is blockchain technology. With its rapid evolution, the implementation of blockchain provides for better privacy, security, transparency, data integrity and scalability than ever before. Although many experts argue that blockchain is still in its very early stages of development, it undoubtedly has the potential to revolutionize any industry and will alter consumer habits on a global scale.
While technology experts agree that blockchain technology will change the world as we know it, it does have limited real-world applications. This could all be about to change however, as more companies and brands implement blockchain to utilize their Loyalty and Rewards programs. More and more consumers are becoming at ease with the use of blockchain cryptocurrencies. As this trend continues, these currencies will become more commonplace.
One of the main reasons for the existence of Loyalty and Rewards program, to begin with, is to assist businesses and brands in retaining customers. However, current Loyalty and Rewards programs and systems possess some major flaws. Consumers struggle to keep track of how many assets (points, miles, etc.) they have accumulated for a certain brand. Often, they also do not know how these points relate to real-world products and experiences that they are entitled to. For this reason, engagement with brands and Loyalty and Rewards programs tends to lean on the low side. Blockchain technology can offer a simple solution to these issues.
Firstly, blockchain technology allows customers to trade assets (points, miles, etc.) on a public exchange. This public exchange makes it easier for customers to visualize how much real-world value their assets have.
It also allows individuals to purchase assets for more rewards. There may also be the option of converting these assets to other cryptocurrencies. Conversion of this type can help currencies like Bitcoin and Ethereum get more traction in the general public.
Secondly, brands will be given more options when designing their Loyalty and Rewards program: for example, they would be able to link all Loyalty programs together with the use of a common infrastructure.
Blockchain can help brands ensure customer privacy. Blockchain technology is based on ledger technology, which makes it very difficult to uncover any personal details about an individual.
More and more aspects of our lives are moving online, and although this provides many with convenience, it also leaves those at increased risk of hacking. By implementing blockchain technology into Loyalty and Rewards program, businesses and brands can assure that their Loyalty and Rewards program is safe to use.
Customers will be able to benefit from the increased speed of blockchain technology. Traditionally, it can take days, weeks, or more for points & miles to appear in a customer’s account. Blockchain can substantially reduce the amount of time it takes for customers to receive or exchange their points & miles. This reduction will create a more convenient experience for both businesses and customers. Easy of use will help build better engagement between the customer and the brand.
Although cryptocurrencies have been around for several years, they still have limited real-world applications. By implementing blockchain technology into Loyalty and Rewards programs, this hurdle can be surpassed. For this very reason, numerous companies and organizations are now switching to a system built on blockchain-based technologies. If this approach is well received, blockchain might evolve to be the new technology standard for Loyalty and Rewards programs.