Achieve brand improvisation and customer loyalty through blockchain – qiibee

For customers’ attention through advertisements channels via TV, social media feeds, billboards, etc have proven their roles, likewise, blockchain for now, likely to assist in brands enhancing customer loyalty. By Gabriele Giancola, CEO and Co-founder of qiibee, the Swiss loyalty token protocol helping brands around the world run their loyalty programs on the blockchain.

Well, with Singapore Airlines and Delta Air Lines having recently introduced a blockchain-based loyalty program and replacing its air-miles with cryptocurrency respectively, it indicates that blockchain positions to radically transform conventional loyalty programs as we know them, making them more resourceful, accessible and cost-effective for both brands and customers alike.

Qiibee sheds some light on how is blockchain increases customer loyalty and revitalising conventional rewards programs:

Blockchain introduces cost-cutting efficiencies, including cutting out high customer acquisition costs for brands: From the technical implementation, right through to the costs of the rewards themselves, loyalty programs can be both expensive and tedious to set up, and demand a significant investment of time and money.

Blockchain also significantly reduces system management costs owing to smart contracts that atomise processes, as the 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. 

On top of this, brands themselves benefit from having access to an ecosystem of already loyal customers, which again reduces acquisition costs.

Secured and reliable platforms: All transactions recorded on the blockchain are cryptographically secured, which means that participants of the network have their own private access points (akin to their own personal digital signature). Blockchain’s tamper-proof nature also means that every transaction is vibrant, which eradicates the potential for fraud or other misuses of the system (which is, again, connected to costs).

Blockchain offers real value outside of the brand context: Clients raise their grievances quite often about the lack of reward options available with loyalty programs, and along with the lack of cohesiveness it’s easy to see why customers would abandon their loyalty programs. 

With blockchain, tokens that brands give out are tied to other digital assets which renders them valuable in another sense: customers are no longer forced to spend their loyalty points with a specific brand, or even other brands within the ecosystem, as they can choose to sell their tokens for fiat and spend the money in the real world!

More significantly, the tokens can rise in value without any further investment from the customer.

Overall, blockchain’s advantages are multifarious and efficient for undertaking the loyalty market’s inherent issues: for brands, blockchain significantly reduces costs, tackles security issues, and increases customer engagement. Courtesy: wachsman

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