The benefits of blockchain in loyalty programs — Part Two
3. Safe experiences for everyone
Some people are reluctant to join loyalty programs. According to a PwC [2] survey, approximately 70% of consumers express concern about joining these programs, especially when it requires personal information. This is understandable with the growing incidence of online identity theft. Blockchain technology can minimize these risks. Anonymity is a key feature of cryptocurrencies, and customers may not need to provide personal information. Blockchain can also keep information more secure. The security features of blockchain also benefit companies. Approximately 72% of loyalty programs are deceived by people who use fake transactions to earn loyalty rewards for purchases they have never made. The records used in the blockchain are completely transparent and traceable, which prevents unauthorized transactions from being ignored. This prevents people from “cheating” on the loyalty program. Blockchains can minimize the risks of identity theft and fraud to the benefit of businesses and customers.
4. Investment that pays off
Implementing loyalty programs is expensive, such as tracking points, monitoring redemption, marketing, and calculating sales impact. Blockchain is an investment and can help reduce these costs in the long run. Implementing blockchain becomes easier as time goes on and processes emerge and partnerships are created. Blockchain systems reduce the costs associated with transaction management, fraud, and system errors. By investing in Blockchain and following the guidance of top cybersecurity consultants, you can give your customers more credibility and reduce the cost of managing a loyalty program.
5. A more efficient process
Some loyalty programs are still in the dark and record scores manually, which is time-consuming and leads to customer frustration. Blockchain systems make it easier to store and record loyalty points transactions in real-time. Blockchain is currently used in the food industry to track food products throughout the supply chain. Using Blockchain technology, Walmart was able to track a batch of sliced mangoes on a farm in Mexico in just 2 seconds, a process that typically takes more than a week. Using this technology in a customer loyalty program allows companies to track scores in real-time and reward their customers with greater productivity. Faster service means more loyal and happier customers. Blockchain is a solution for customer loyalty programs. While blockchain technology continues to dominate business and everyday life, loyalty programs are a prime candidate to follow suit. Having faster, more accurate, and more flexible loyalty programs can make customers happier.
