Blockchain for Loyalty Rewards Program Management

  • Jayant Dev Srivastava, Naman Kumar, Harshit Bisht

Abstract

Traditionally the reward programs have been used as a tactic to encourage repeat customers by offering points and discounts. Sometimes involving cards or complex registration processes, these programs are beginning to fall out of favor with modern customers. Instead of heightening the customer experience, they can actually have the opposite effect dampening customer enthusiasm with complex rules and transactional rewards. In B2C businesses, it is usually quick and easy for a consumer to sign up for a brands loyalty program. Traditional loyalty programs suffer from issues like Low redemption rates, High costs, Few customer incentives and Security concerns. Blockchain is expected to surge in the coming years due to its value-add for businesses. We have introduced Blockchain-based Loyalty Program.Since a loyalty reward program involves multiple parties including participating merchants, platform provider and customers with each having competing needs, Blockchain adds value to the ecosystem by providing an immutable and verifiable open ledger of all the transactions. A common thread in all blockchain-based loyalty programs is tokens that are used as a reward and form a medium for transactions. Beyond this commonality, there are different variants possible which include Private token versus cryptocurrency and Single Brand, Multi-brand or Consortia enabled loyalty program.

Published
2019-11-02
Section
Articles