Blockchain Technology Promises Major Benefits for Loyalty Rewards Programs
Loyalty reward programs have been growing rapidly for a long time, but they are not realizing full potential on account of customer account inactivity, time delays, low redemption rates, high transaction and system management costs, high customer acquisition costs and low client retention. The Deloitte Center for Financial Services (DCFS), in a recent report, claims blockchain technology can improve customer loyalty and reward programs. Enrollment in loyalty programs jumped 20 percent to $3.32 billion in 2015 from the prior three years. But according to one study, only 42% of those....
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A new report from Deloitte explores how blockchain could be used in loyalty rewards programs. The report, released by the Deloitte Center for Financial Services, argues that most loyalty programs offered by US companies face a problem, as they are underutilized and have high management costs. At the same time, loyalty rewards recipients are just as likely to leave a program due to a perceived lack of convenience, the study found. Blockchain, according to Deloitte, presents a potential solution, offering a mechanism by which a loyalty program would function similarly to digital currency.....
Blockchain has already demonstrated its ability to disrupt many industries. There is a whole load of companies playing around with Blockchain only the laziest haven't thought of new applications for it. Obviously, Blockchain is not a panacea for every problem. Does it have the potential to deal with challenges in the loyalty rewards industry? Blockchain certainly has a potential to bring changes to the industry but perhaps it would be fairer to consider it as a system facilitator rather than a replacement for a current system. Besides, the success of the undertaking would largely depend on....
Bitscan, a cryptocurrency merchant directory, has partnered with blockchain platform Waves to bring customer loyalty programs to the blockchain. If successful, the partners say their Incent Loyalty network will make loyalty rewards programs more useful and cost-effective. By utilizing the blockchain, the team says the platform allows merchants of any size to create customer rewards programs without incurring wasteful costs. The platform works by allowing merchants to choose a reward size for their programs, which get pooled with other rewards across the platform’s network. According to the....
Dubai is set to host the world’s first blockchain loyalty program with the launch of Loyyal, an umbrella scheme aimed at uniting many rewards programs under one banner. Uniting ‘Fragmented’ Loyalty Industry. In concert with the Dubai national government, Loyyal will use an “unbundled” blockchain to provide value transfer between loyalty scheme....
More than just rewarding customers in cryptocurrency, the underlying bitcoin technology holds a lot of promise in changing the loyalty rewards industry. In the latest version of the BitLicense framework in New York, these reward points based on the cyrptocurrency's blockchain were exempted from regulation. These comprise frequently flyer miles, hotel loyalty points, return-customer retailer programs and so forth that were developed using bitcoin blockchain. Ribbit.me, a company whose RibbitRewards are tradeable, blockchain-based loyalty tokens, gives reward points that are generated by an....