Almost all of us are aware of the fact that loyalty programs are conceived as the tool for customer retention whether the business is an online store or just a brick and mortar store. But ask any marketer or business with the experience of running such loyalty programs and you are bound to come across a negative view concerning this. Yes, most loyalty programs do not deliver the results as they are expected. It is equally for the businesses who run such programs and the customers who stand on the receiving end.
Recently, Blockchain solutions came as an impressive technology to change this scenario. We already know the positive impact of Blockchain across several industries including finance, retail and several others. Now Blockchain seems to take over the concerns about retail marketing tools such as loyalty programs as well. In the course of this post we will see how Blockchain can make shopping experience better and can actually address the problems loyalty programs have to tackle.
Key Issues To Address With Loyalty Programs
A whole array of issues are there that make most loyalty programs suffer. Almost a vast majority of these issues actually create an impression in loyal customers that they are not getting their due properly or are not being treated wisely. While loyal customers expect to get preference from the business, they also get hurt most when they feel such preferences lacking.
The biggest issue is with liquidity. Just because loyalty points are totally illiquid the benefits often remains to be reimbursed from a single retailer and not through every other. This makes getting the benefits of loyalty programs a problem for the customers.
The second big issue that any business or product engineering company must take notice of is concerning cross-border spending. In spite of the globalisation, customers buying a product in one country and encashing loyalty point benefits in another country is still not possible.
How Blockchain Technology Can Address These Issues?
So, we have come to know the main issues with loyalty programs that are eating away the benefits of this tool. Can Blockchain technology address these issues comprehensively and convincingly? Yes, it can and we explain here how it can address these issues.
First of all, Blockchain through its diversified, completely decentralised database management easily facilitates cross-border payments and transactions through cryptocurrencies like Bitcoin. This not only allows fast paced transactions while lowering overhead transaction cost, it also helps reimbursing the benefits of loyalty programs across stores whether within the country or beyond the border.
Example Of Such Blockchain Deployment
Already innovative Blockchain deployment is happening to make this unperturbed cashback and loyalty programs real. One such initiative is Benebit.io which is a blockchain startup that allows customers transacting through cryptocurrency for shopping and thus redeeming their loyalty points anywhere anytime they need.
So, people who still think Blockchain is all hype and zero substance for the retail and B2C business marketing should sit straight and take a serious look at the possibilities unfolding with new innovative deployment of the technology on a continuous basis. Blockchain has arrived to help both customers and businesses to make the most of business interaction and thus make the world further bereft of boundaries and borders.