Blockchain can be used to address pain points of traditional loyalty programs

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 27, 2019, 9:24 AM UTC

Blockchain loyalty tokens give customers more freedom to redeem them.

The author points out that traditional loyalty programs with complex registration processes and rules dampen customer enthusiasm. The piece suggests retailers and ecommerce players to use blockchain loyalty tokens to add flexibility of usage in redeeming rewards.  

Using blockchain allows consumers receive and redeem loyalty tokens that can be used across multiple platforms. Blockchain loyalty tokens do not lose value and never expire, unlike traditional reward points.

With complex point accrual systems being a consumer concern, blockchain tokens give consumers the flexibility to redeem them in smaller increments. The use of blockchain assures users of being able to use their tokens at will knowing that companies cannot change rules or the token amounts.  Consumers can also use blockchain tokens at different stores, save them for future use or swap them for a different cryptocurrency.

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