“Loyalty programs” started out–and remain–a great idea now have become the backbone of customer retention in many campaigns. In the beginning, they were simple–you received a stamp on a card every time you bought or used something from a participating company; once that card was filled up–i.e., reached “maturity,” you would receive something free. That something was more of the same–a product or service of which you were a fan, to begin with.
While mainstream commerce has evolved, so has the loyalty program. Today, companies are re-imagining their program as “customer-centric”–that is, practices where they offer rewards based on what customers want–like micromanagement, but on the receiving end. This not only keeps customers for the long term but also because it makes sense overall by creating happiness among customers–beneficial for any business in theory. The next logical iteration of this has emerged as blockchain-based loyalty programs.
What Does Blockchain Bring to the Table
What blockchain brings to the table is verifiable transparency in transactions between businesses and their customers or clients. It has already proved its worth in other fields, such as banking, trading, healthcare, and even politics. A blockchain is essentially the very ledger of transactions; specifically in blockchain-based loyalty programs, each transaction between the customer and the company is permanently recorded/archived. As such, there are many benefits for both the business and their customers when blockchain is used.
To the point of loyalty programs, blockchain makes it easy to manage points or miles. Every time you buy something using your blockchain-based loyalty card, the transaction will be recorded on that blockchain. For example, let’s say there are 100 stamps required to get one free product from Company A; whenever you buy anything that would normally earn you 10 stamps, blockchain technology will record this as 1 stamp on your blockchain account. The result? Adjustments in the blockchain can be effected in which you can accumulate your stamps faster!
Blackchain’s Benefit of Data
Furthermore, blockchain allows companies to quickly access information about what their customers want, establishing a personalized, recorded experience of exchange, giving them the opportunity to directly give their customers what they want even in real-time. Blockchain technology, engineered in this way, transfers data very quickly: companies can easily see reviews on products or services, allowing them to adjust their offerings accordingly and on the fly! Thus, blockchain improves loyalty programs by making it easy for companies to gather feedback about what customers/clients like, as well as the total customer/client experience (both positive and negative reviews), and act upon this information in the most timely way possible.
Finally, blockchain helps small businesses attract more customers because blockchain-based loyalty programs–immediate, verifiable, accessible–are cheaper than traditional loyalty programs; more than that, they just work better. A salient point that is the very backbone of the blockchain methodology is that blockchain removes the need for having an organization between the company and its clients. Speedier, more efficient, and more private. All of these benefits are budget-friendly as well, making it easier for smaller businesses with limited budgets to begin their customer-centric business model via reduced costs and increased customer loyalty.
Blockchain has the potential to revolutionize the way businesses (especially small businesses) do business, giving them a competitive edge with blockchain-based loyalty programs that are transparent and easy to use. As you seek innovative, new platforms that can help your customers get more out of your business, blockchain technology is ready-made–and ready–to fill that role.
An excellent source you can reference for implementing blockchain into your business model today is http://healthcoinplus.com – the loyalty health rewards solution for small businesses.
For more information, contact us at [email protected]. And don’t miss checking out blockchain’s benefits in healthcare!