As outlined in a recent study by Deloitte entitled ”Making blockchain real for customer loyalty rewards programs” Deloitte outline some of the key benefits for loyalty rewards programs using Blockchain.
REDUCING COSTS / Although blockchain incurs upfront expenses, we believe that the trade-off cost savings will be identifiable on three major levels–system management, transactional, and customer acquisition. A blockchain-based loyalty rewards program should reduce system management costs with smart contracts that report secure, tracked, transparent transactions to legacy systems, reducing costs associated with errors and fraud.
ENABLING A FRICTIONLESS SYSTEM / An airline credits a customer’s rewards in the same digital wallet from which he/she redeems them for the hotel. Through a trust-less, decentralised technology solution, blockchain is centralising the customer’s loyalty programs. Loyalty providers decide how and with whom the customer uses these rewards, but from a consumer perspective, his/her ability to access and manage them is practically frictionless.
MAKING THE PROCESS NEAR REAL-TIME / Blockchain can enable a transaction to be recorded and accessed by multiple involved parties in near real time, increasing the chance that a loyalty rewards program provider can cut through coordination inertia to credit points faster.
PROVIDING A SECURE ENVIRONMENT / Blockchain creates an immutable and time-stamped distributed database entry of every single transaction ever made, making each transaction and its record easily traceable, but also rendering them irreversible, preventing double spending, fraud, abuse, and any other type of manipulation of the transactions.
CREATING UNIQUE BUSINESS OPPORTUNITIES / At the onset of building an interlinked loyalty network, large loyalty rewards program providers with well developed programs will have unique opportunities to offer value-added services to other businesses.