Blockchain for Loyalty Programs
Blockchain technology creates more transparency than many other loyalty point programs.
How about a 'Leberkas coin'?
A submitted rating is rewarded with loyalty points in the form of cryptocurrencies. The customer can then exchange these or use them for purchases. This is just the beginning of how blockchain can transform your customer loyalty program. Any company can create their own digital currency with a little help. These tokens are used like loyalty points or discount cards. For example, Leberkas-Pepi can create a Leberkas coin. This is then used to reward customers who either interact with their website, the Leberkas-Pepi app or make a purchase there. This is all made possible by blockchain.
Blockchain creates more transparency than many other loyalty point programs, because the value of the Leberkas coin is always clearly visible in the blockchain system. Customers can spend earned tokens like regular money, be it to buy a Leberkäsesemmel, change them into euros or exchange them for services provided by other users on the platform. The transparency provided by blockchain allows you to keep an overview.
This ability to trade tokens with each other in the blockchain is a major advantage over conventional models. The larger the network, the greater the benefit for each individual customer. Customers can also decide for themselves what they want to use the tokens, which can be based on a blockchain. This makes customers more active and no longer just a data source that a few corporations use to their advantage. However, how blockchain will develop remains to be seen and depends heavily on the companies. The creator of the tokens can decide whether to forgo information and create an anonymous rewards program or develop a currency that provides information on how it is used.
For whom is blockchain even worthwhile?
In principle, blockchain is suitable for any company in the B2C sector. Blockchain technology can change the interface with customers and create additional added value. Consumer-oriented companies always need new ideas to increase engagement and growth.
Differentiation from the competition is crucial to survive global competition. However, careful consideration must be given to which part of the business or which interface should/can be equipped with the blockchain. However, there is still a long way to go before blockchain technology is fully integrated into marketing, and a lot can and will change along the way.
Author: Isabella Walter, student at the University of Applied Sciences Upper Austria, Global Sales and Marketing in Steyr
