Challenges of loyalty programs

Lack of customer incentives
Lack of customer incentives

Often, reward programs benefit only organizers, while customers have to purchase things they don’t need to get points; for that reason, 33% of millennials dislike reward programs, tells Hackernoon.

Low redemption rates
Low redemption rates

With a multitude of loyalty programs, 30% of Americans don’t redeem earned points in some of them up until they expire, so brands fail to get repeat business from that clientele.

Security breaches
Security breaches

Harris Poll reports that 71% of U.S. consumers are less likely to join loyalty programs that collect their personal data, worrying about their corruption and theft possibilities.

High maintenance costs
High maintenance costs

Loyalty programs cost a pretty penny for companies; costs might include third-party or proprietary software integration and maintenance expenses of $2K-$15K a month on average (as found by Stamp Me).

Personalization concerns
Personalization concerns

The demand for exclusive offers grows, but brands often fail to meet it for lack of proper tracking tools; as a result, their “one-size-fits-all” offers don’t bring them anticipated profits.

Dispersed infrastructure
Dispersed infrastructure

Customers who participate in several loyalty programs at once might not reach the threshold in any of these to spend points, so they can’t use the services they spend a lot on in total.

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Blockchain solutions for loyalty programs from Aetsoft

Flexible reward points

Offer blockchain-enabled tokens as rewards and let customers choose how and to what extent to redeem these.

Irrevocable assets

Provide irrevocable blockchain tokens as reward points; companies can’t take away those for some internal policy issues, so points can’t expire or get devalued.

Secure systems

Improve the security of your reward platform through blockchain’s cryptography encryption protected against hacker attacks.

Personalized offers

Arrange highly-targeted loyalty programs based on blockchain’s immutable records of customer identity and behavior.

Exchangeable rewards

Allow customers to transfer points between reward programs quickly by providing a single, cryptographically-secure, and easily exchangeable blockchain currency as points.

Self-maintainable programs

Cut program maintenance costs with self-enforcing blockchain technology that maintains loyalty records autonomously, without any supervision from your part.

Blockchain applications in loyalty programs

Program management

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.

improve processes with Blockchain
Transactions

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.

improve processes with Blockchain
Data visibility

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.

improve processes with Blockchain

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KYC
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