Blockchain Based Loyalty Program: A Structure to Customer Retention
December 27, 2022
Blockchain has transformed the way of modern business, irrespective of industry type. The new technology enhances business & client satisfaction and uplifts the obstacles to offering and redeeming loyalty rewards.
Today, in a highly competitive world, customer engagement has become a need of an hour. Therefore, most marketers focus on retaining existing customers with customer loyalty programs. A survey also revealed that 75% of US adults choose to buy goods or services from loyalty points offered by companies such as credit cards, hotel chains, travel tickets, and more. American businesses offer over $50 billion dollars of rewards to boost customer retention.
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While some businesses like Amazon, Starbucks, H&M, and Chipotle are on top of offering loyalty rewards, still, many are far away from grabbing the market opportunities and retaining their customers for a longer time.
If you are facing the same customer retention issue, believe us, this post will be worth reading for you.
What Is a Blockchain-Based Loyalty Program?
Customer loyalty and engagement have the potential to make or break the companies. Why? Most of the time, companies offer reward points to customers, and they become unable to redeem them due to multiple reasons. Like, if the customer gets traveling reward points and the person occasionally travels, the points get wasted, similarly in other cases. But a Blockchain based customer reward programs offer an opportunity for instant redemption and exchange for multiple loyalty point currencies on a single platform.
Blockchain helps reduce cost, enabling frictionless systems, making real-time processes to record and access multiple parties, and providing a secure environment.
Industries Leveraging Loyalty Programs
Blockchain for customer rewards programs has become a prominent choice in almost every industry. Here we have listed a few industries and how they can leverage the power of loyalty programs to empower their business. If you find your business is not listed in these industries, check out our experts.
Banks & Financial Institutions
To flourish like other businesses, banks also need to offer something that can attract or retain customers. That's why modern functioning banks choose loyalty programs to reach a wider audience with their loans, credit cards, saving accounts, and other services. This feature also enables quick customer targeting and achieving business goals.
Retail & eCommerce
Bring personal experience at every level by offering loyalty programs in your Retail & E-Commerce business. It helps in repeat purchases, as well as businesses' profits. For example, Starbucks offers stars as a reward for spending every dollar. Reaching 60 stars, customers can enjoy a free drink or a slice of a cake. In the same way, you can offer as per your business & customers' demand.
Travel & Hospitality
Customer loyalty programs in the travel and hospitality industry help to promote marketing efforts and build deep relationships between customers. Customers can redeem special offers on their next flight ticket booking, enjoy dinner by entering special events, or more.
The fashion industry comes in the first list when it's about surprises. People buy clothes for multiple reasons, such as a cocktail party, joining a new office, wedding, festive season, or upgrading their wardrobe. Loyalty programs help to get repeat customers at stores and make them loyal to your brand.
Gyms and Spas
Another great industry that offers loyalty programs includes Gym & Spas. Some gyms offer spa options within the premises, whereas others have tie-ups at different places. Many Gym or Spa centers collaborate with each other and offer a complete package of Gym & Spa services. Even some of them incorporate supplements and vitamins to experience a full workout program.
Medicine delivery businesses also become a part of the rat race of competition to offer and attract people with loyalty programs. Most of these businesses are offering a heavy discounts over, coupons system, and cash rewards to order above a minimum price.
In this race, many businesses like superstores, book stores, Online education/Courses, Jewellery & Accessories, Gemstones, Liquor stores, Electronics, etc., are also stepping into the industry with Blockchain based loyalty programs.
Various Types Of Loyalty Programs
To reward your customers with loyalty programs and personalized experiences with real-time access, here we have listed different types of loyalty programs. Find out what suits your business or if you want to go with it all.
Offer reward points to your customer, just like the above example of Starbucks. It will help you acquire, retain and retarget repeat customers and achieve higher sales/revenue.
Gift Cards or prepaid gift vouchers suit your industry needs and strengthen customer loyalty. It is one of the simplest ways to offer something when your customers sign up on your platform. Like you can set a minimum value for a sale product or offer a special product on sale.
Attract, engage and incentivize influencers with referral programs. The praise and reward option works to boost the customer base and let your present customer earn more from your app or platform. Nowadays, almost every business uses this strategy to engage customers - mobile payment apps and shopping apps are prominent examples of it.
Buy One Get One
Buy one and get one loyalty programs are used to improve business sales by offering complementary products. Fashion brands mainly use this strategy to promote sales and earn more. You can also see supermarket stores that offer one on one goods.
Coupons & Vouchers
To increase foot traffic and pickup/delivery orders for your store, coupons & vouchers are a great option. You can design customer-based coupons, manufacturer coupons, online printable coupons, in-store apps, coupon codes for online purchases, rebates, new mover offers, and more.
Discount offers to increase and encourage customers for larger purchases. It gives incentive on price for extra discounts or benefits to the customers who are loyal to your brand. You can also offer it as a reward card. Loyalty Programs To Lead The Business
The need for loyalty programs varies from business to business. It helps you to sit apart from the competition, increase engagement, and smooth the experience for all digital touchpoints.
Blockchain-based loyalty programs help your employees to stay motivated and deliver excellent business outcomes. You can design various types of loyalty programs such as Gym membership, shopping vouchers, gift cards, and many more.
Get the opportunity to connect multiple merchants with a single loyalty program's features. This loyalty program is a perfect option for businesses that wish to work together and achieve collaborative business goals. Some of these businesses are - traveling and hospitality, gyms, spas, multi-vitamins stores, etc.
The type of loyalty program is designed to reward channel partners to generate more sales and earn handsome rewards. Crafting such reward points with tech experts helps you to earn and strengthen relationships. You can also offer heart-winning reward points for continuous and better results.
A marketing strategy to connect business influencers with your brand and reward users with attractive schemes. Using referral loyalty programs are game-changing schemes that can boost sales and convenience a huge user base. The choice is all yours, you can offer cash or reward points in an e-wallet.
Customer loyalty programs give a reason to customers to choose you over competitors. The offer perfectly lines for the customers, whatever the business or industry you are looking for. You can offer cashback rewards, discounts, vouchers, etc.
Key Features of Successful Blockchain Based Loyalty Program Solution
AI & Machine Learning
Predictive and AI-based tools power blockchain-based loyalty programs. That helps you to understand the target audience precisely and know their expectations. Accordingly, you can plan loyalty programs that your business will offer.
Analytics & BI Reporting
Analytic tools and BI on Dashboard enable you to understand customers' unique paths of purchasing and access your loyalty needs. These tools identify new trends, assist you in employing quantitative and qualitative approaches, and capture data interactively.
The market automation tools help you to get conversion and keep going with it. You can offer custom services based on purchasing and stay on top of personalized communication.
Segmentation & Personalization
Everyone loves a personal approach by a company to offer the desired loyalty program. You can offer rewarding options by building a deep segmentation approach for customers based on past experience, behavior, and more factors.
Campaigns and promotions are the right set of services and help your band to define a product. With a blockchain-based AI-driven loyalty program, you can get the opportunity to run campaigns and deliver the right message.
Customer Data Management
Blockchain for loyalty programs empowers bands to manage customer data with a swipe. The loyalty program solution delivers a better customer experience with data collection and making smart decisions.
The loyalty program management feature lets you focus more on business with flexible and versatile technology. Blockchain-based loyalty programs help you to manage customer data effectively.
Roadmap To Build Blockchain For Customer Rewards Program
Blockchain experts follow a comprehensive strategy to design and develop effective blockchain-based customer loyalty reward solutions. Here we have mentioned how we build your solution.
We start with an in-depth analysis of the business, grasp business ideas, and summarise before building blueprints. After getting your business purpose, we find out your business challenges and focus on a fruitful strategy with a customer retention approach. Then we set a business growth strategy and optimize your marketing efforts. Moving ahead with the digital strategy, we create a layout to define whether a blockchain-based solution will fit into your existing business needs or if you need a system from the ground. Once we get the answer to all your queries, we combine expertise, tools, and efficiency together and build a scaling loyalty program solution.
Hope you get an answer to every question. Now it's your turn to take a step toward building a blockchain-based loyalty platform.
We at RisingMax have 13+ years of experience in building various industry solutions. For over a decade, we have been into the blockchain industry to provide block-secured solutions fulfilling business requirements. Here we have more compelling reasons for you to choose us to integrate your platform with loyalty program features.