Loyalty Program has been a common marketing solution for years implemented in many companies, mostly based on a transactional point of view.
Regarding recent studies, 48 trillion Reward points worth $360 billion, sleep in the customer accounts across the globe. These are Reward points or miles accumulated by consumers, who subscribe to different programs, pushing customers away from brands.
In fact, 30% of consumers never even redeem a single point as they might ignore how many they have or what could be their rewards. So why is there so much stagnation within loyalty programs ?
Here are the major reasons:
- Lake of transparency (point balance, and how and when to redeem them)
- Minimum point requirement for redemption or reward
- Poor customer benefits
- No interoperability
- Security issues or frauds
The actual loyalty industry is characterized by numerous silo programs with independent systems for earning, redeeming, and not so often exchanging points; the fact is centralization of points is pushing consumers far away from loyalty and brands without cross-selling programs and strong benefits & rewards.
So why tokenization could be a strong game changer in the loyalty industry to improve customer experience?
Blockchain and tokenization are considered to be a powerful solution for financial decentralization. At Fidly, we believe decentralization will help a major change in the loyalty industry, by helping customers getting better benefits & rewards on behalf of blockchain and tokenization . We aim to solve this issue by allowing cross program exchange but also between consumers, ending by the possibility to convert loyalty tokens into crypto assets or Fiat currency in a secure digital wallet.
The main advantage by using blockchain technology for consumers will be to :
- Bring transparency into any loyalty program ( No possibility to change rules), all transactions will be covered by a smart contract.
- Awareness on how and when redeem loyalty points
- Allowing cross program exchanges (Interoperability).
- Giving points to friends and relatives
- Bringing high value rewards to customers
- tailor made ecosystem based on favorite retailers
- Single wallet plateform managing multiple loyalty programs
- Real time credit or reward
- Security
Now you have the main points Let’s take an example :
Our John Doe own 100 s’miles from previous purchase at his favorite barber shop. He received a notification that those points will expire soon. He sees on Fidly that he need 150 points to get a free shave. Jane, his girlfriend, give him 10 airmiles that she got from her last holiday trip to Morocco. John can now exchange the 10 airmiles to 50 s’miles and get shaved to meet his in law’s.
Fidly’s technology can drive strong rewards and can offer a unique and disruptive opportunity to help reduce costs, bring more participants and give agility and powerful retention through any loyalty program. Blockchain & Tokenization can be the perfect bridge to re-conciliate Brands and its consumers from Loyalty