An average American is reportedly a member of seven loyalty programs and many of them reportedly have 10–15 loyalty cards in their wallet.As industry insiders know, breakage can be as high as 30%.
An average American is reportedly a member of seven loyalty programs and many of them reportedly have 10–15 loyalty cards in their wallet.As industry insiders know, breakage can be as high as 30%.Tags: Ucc 3 AssignmentWriting Good Dissertation Research QuestionsBattlefield 4 China Rising AssignmentsStanford College EssayOffice Cleaning Business PlanFun Topics For A Research Paper
And till the day these points expire, they will sit as a liability in balance sheets of brands.
And for an industry that tops $300 Billion, the problem is undoubtedly immense.
This Blockchain network will be a shared scalable infrastructure between brands from different sectors.
This blockchain model for loyalty programs enhances the value of points to users and brings in new value to the involved brands by creating trusted transactions.
And we haven’t even touched the security aspect yet.
In 2017, 11% of attacks on existing financial accounts (not involving payments on credit and debit cards) were on loyalty accounts, compared with 4% in 2016.On top of this, brands themselves benefit from having access to an ecosystem of already loyal customers, which again reduces data acquisition costs.Through a trustless, decentralized technology solution, blockchain is centralizing the customer’s loyalty programs.Also one doesn’t have to rely on any 3rd party which gives each brand full access to their most valuable asset, data apart from saving the management cost.CHAPTER 1 PROBLEM AND ITS SETTING INTRODUCTION Customer loyalty is a behavioural state, which reflects value, confidence and commitment between the supplier-customer relationships (Buttler, 2002).Generally while establishing a joint loyalty program, it requires establishing the B2B communications needed to maintain the accounting aspect of the loyalty points, where each party has to audit transactions and secure data from fraudulent attacks.This is one of the reasons that establishing and operating joint loyalty programs can quickly become a complex and expensive effort.Blockchains technology is an excellent solution for running network loyalty programs because they address many of these technical challenges.One of these solutions include creating a shared transaction ledger between all involved brand, implementing interchanging rules based on “smart contracts”, which is fraud and cheating protected.Transaction costs related to the issuance and redemption of reward tokens are much lower on the blockchain since they do not require a third-party.Blockchain also significantly reduces system management costs, thanks to smart contracts that automise processes, all while reducing costs related to instances of error.