Blockchain and consumer loyalty programs

Consumer loyalty programs are made to expand the customer base and to encourage customers for specific actions. Brands usually adopt such incentives to encourage their customers to trust in them. When a consumer is rewarded for their purchase of a service or a product they can better identify with the brand, and this is specifically true when the quality of the service or the product is high, especially comparing with competitors.

The key elements of a successful consumer loyalty program are considered to be efficiency and transparency. With Blockchain becoming part of these programs, total transparency becomes a major value of loyalty programs. Both brands and consumers will benefit from the application of Blockchain in the reward programs. The added transparency will be used to motivate the consumer to participate in reward and loyalty programs, and redeem tokens throughout.

This can help brands save costs of managing and setting up their program since Blockchain is considered a cost-effective technology, charging for fewer transaction fees. Applying bitcoin to the reward programs can make the high-volume of transactions process at a very high speed.

The information collected throughout the programs is well secured with Blockchain, which helps prevent any access of unauthorized parties. Blockchain offers security that can benefit not only the provider but also the consumer. The first will benefit from the avoidance of loss from breaches, while the consumer will be encouraged to participate and redeem tokens since they know that what they are doing is safe.

Finally, Blockchain consumer loyalty programs are run competently. Consumers can effortlessly redeem their tokens and businesses can maximize their reward systems.

Blockchain and employee reward programs

Employee reward programs are also known for their efficiency, security, and transparency. Using blockchain also helps organizations save money by not running them traditionally. These programs, backed up by blockchain, can help achieve their main goals such as transparency, accountability, and incentivized mechanisms.

Employee reward programs are designed to be able to motivate employees so they give their best in their tasks. The transparency in the process can also encourage the employee's trust. It can be achieved using blockchain as it is a decentralized system, and all the activities can be supervised by all involved parties. Managers and employees can track the process and monitor the way tokens are awarded.

Blockchain is an optimal way to achieve the accountability required for employee loyalty programs.

Finally, blockchain can also achieve the automation of rewards. Tokens will be awarded to employees according to their established standards.

Source:

https://medium.com/@alexrgd/how-blockchain-can-work-for-employee-and-consumer-reward-bf8f0f5f4895