Blockchain applications in loyalty programs
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Program management
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Transactions
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Data visibility
Use case 1. Simple program management
Currently
With a multitude of loyalty programs, each having an individual token as loyalty points, it becomes hard for companies to track transactions in different currencies across those.
With blockchain
Provide a single, encrypted and secure, token for all programs to seamlessly track its usage across multiple programs and allow customers to flexibly use it when switching between programs.
Use case 2. Secure transactions
Currently
Traditional transactions within loyalty programs are slow and highly insecure; as a result, millennials are most unwilling to join those for transaction fraud and even fund theft concerns.
With blockchain
Ensure fast and safe program-to-customer rewards, with smart contracts initiating payments, instant and self-inclusive, and low chances of fraud due to provided cryptographic encryption.
Use case 3. Improved data visibility
Currently
33% of millennials dislike loyalty programs for the pile of related cards to carry; for companies, in turn, tracking all data from multiple programs with different tokens, dispersed across fragmented databases, becomes quite a challenge.
With blockchain
Store data, like point usage and customer behavior, from all your loyalty programs in a single, blockchain ledger; distributed among trusted users, it is protected against tampering.