Is Blockchain the right choice to power Customer Loyalty Programs?
A research suggests that the average customer is a member of more than 14 different loyalty programs but, generally active only in a handful. You may not always find customers who genuinely wish to stay loyal to your brand, in general cases, people mostly look for freebies, handouts, and lowest compared prices.
It’s the era of complete transparency, customers rely on the brand which is open to their queries and follow a set of process visible and accessible by everyone. According to the recent survey by Sprout Social “When brands develop a history of transparency, about 90% of consumers admit that they are more willing to give brands a second chance after a bad experience, while 85% say they will stick to the brands during a crisis when they are more transparent overall.”
To match the racing competition, a company must hold loyalty programs for customers, not just as a perk but as a token of recognition to their loyalty. But, is security still a loophole? The recent developments in terms of technology enhancements have made the graph rise higher to dedicate efforts towards data security and transparency. With trends elevating, blockchain can be the answer to the security concerns.
The Blockchain is trending, a secure distributed ledger technology bringing forward the solution to many large customer loyalty programs. The only technology which acquires the capabilities to work out and fix the issues related to complexity, integration & alignment of a large network of suppliers and partners.
Customers often find the redeemable points provided or earned through loyalty programs worthless as the points or vouchers can only be redeemed with the same brand which restricts the shopping experience and end up making customers quit. Blockchain here can be a centralized medium to earn loyalty points as a cryptocurrency, further redeem the same at a vast area of the network which may include various brands. The entire flow of implementing blockchain is likely to be a compelling customer proposition, being an added advantage for the brand owners as well as the customers.
Customer loyalty programs aren’t easy maintenance, the structure is becoming increasingly complex in the efforts to make the loyalty programs better in usage. The numbers of partners and suppliers have been speeding with each passing day and the brand supervisors are currently experiencing quite a vast ecosystem which is excessively complex to manage.
The role of blockchain here can be pervasive enough! Integrating the technology in the network can help seeking better managing possibilities, improve operations and keep the data sharing easy as its open for all. You don’t require to implement separate contracts for each partner to be connected in the network, smart contracts can serve the purpose and get the details implemented quick and clear!
It’s no surprise that we come across the news of data theft and a security breach at almost every other organization. It creates an impact on the customers making them insecure towards their contact details and other data mentioned. From the customers who participate in loyalty programs, nearly 70% of them express concerns about the vulnerabilities of companies to cyber-attacks.
The Blockchain is highly secure, distributed in nature and the appropriate choice to keep the data secured and protected from the foreign elements leading to a security breach. This includes everything to keep the entire loop data sealed wherein each alteration in the transaction is stored in the form of a block which is accessible to every connected individual in the network. The probability of security issues is negligible in comparison to the traditional customer loyalty program integration method.
Undoubtedly there are still a set of concerns that are required to be addressed, get a quote from a Blockchain consulting company to get furnished with technology integration perks for your loyalty program.