In the practice of modern business, there is a special approach to establishing customer loyalty to the brand of the company.
One example of implementation is the use of loyalty programs in the form of cumulative points and bonuses. When building and launching saving and discount systems for customers, the company sets itself certain goals, including improving operational performance (an average bill, frequency of purchases) and achieving strategic objectives (improving the efficiency of technological processes, increasing competitiveness). The approach requires careful planning and project development.
According to the new market research report “Loyalty Management Market by Type of Solution,” the loyalty program market is expected to reach 4.59 billion by 2021. The essence of loyalty programs and ways to manage them still do not allow most companies to fully reveal the potential of this technology to engage customers. The statistics and surveys among users of loyalty programs show regular dissatisfaction with existing incentive programs is revealed. Problems arise with the transparency of expenses and the accumulation of bonus points, difficulties with the conditions of earning rewards, as well as with the speed of their expiration. Such a result ultimately leads to losses and irrational use of company funds.
The interest that blockchain can bring to the loyalty program market lies in the fact that the technology automates the current processes and makes it possible to track the history of all operations carried out when purchasing goods or using bonus points. The value of a business idea has already been appreciated by many supply chain retailers. Credits platform is one of the first projects to introduce the innovative blockchain solution for loyalty programs.
The Bonoox Loyalty Platform is a blockchain-based reliable system to change the ongoing perception of brand loyalty programs. It enables to enhance the customer interaction with companies through the use of Credits tokens. The use of the Credits blockchain allows Bonoox loyalty program operators to distribute loyalty points as tokens, attract new customers due to unique features like the ability to track loyalty balance and increase the number of loyal clients. Customers will be able to share their bonuses (tokens) among their friends, involving them to try the company’s service. The platform allows the federation of multiple-loyalty programs into one system providing all the necessary infrastructure components.
The integration process of Bonoox is simple. The company creates its digital asset, or token, by utilizing smart contracts on the Credits platform. The token is equivalent to the loyalty point. Credits’ flexible smart contracts contain all the relevant information about the terms and conditions of the program allowing the company (user) to set the terms that fit their loyalty program. It is also possible to develop an app for the company’s customers, enabling them to make purchases via a QR-code, NFC or RFID marks.
The customers of the company have to create Mobile or Web accounts that have their unique identifier with public and private keys and digital signature. Once purchases are made, the loyalty points are automatically distributed through the Credits platform and their histories can be tracked in the blockchain.
The main advantage of the blockchain lays in the liquidity of loyalty points. From now on, customers do not face any issues. The stored tokens on the personal wallets are transparent and can be tracked. The other feature is that the tokens have their value and can be exchanged, which is the incentive for customers to take such kind of programs seriously.
‘Zoom Hizar’ Restaurant Chain Loyalty Program
- App: under development
- Amount of company users: 50,000 visitors per month on average
- ZH Token
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- App: under development
- Amount of company users: 5,000 visitors on average
- SH Token
To launch your business loyalty program on the blockchain — firstname.lastname@example.org