Blockchain loyalty program software solves all the issues of program providers, but only when deployed through a mobile app. Find out how you can benefit.
Table of contents:
✅ Introducing blockchain
✅ Loyalty program inefficiencies
✅ Blockchain loyalty program software
✅ Mobile-first: loyalty app & socials
✅ Additional benefits of a blockchain loyalty program
Introducing blockchain to loyalty programs
There are several inefficiencies that cause loyalty programs to miss out on their full potential. Blockchain can transform the industry for businesses everywhere, implementing blockchain in your loyalty and marketing strategy is an example of that. We will elaborate on how blockchain can solve the inefficiencies once applied with the right approach for consumers: through a results-driven mobile application.
Loyalty program inefficiencies
Successful loyalty programs come with several benefits for businesses. You can think of a positive brand image and sustainable brand loyalty, with increased revenue as the main goal. Several issues are blocking the path to these goals for businesses, as defined by a thorough Deloitte research:
☑️ High transaction costs
☑️ Costly system management
☑️ Overall account inactivity
☑️ Low redemption rates
☑️ Expensive customer acquisition
☑️ Poor program engagement
For businesses that run loyalty programs, customer inactivity is a common issue. Unclaimed rewards are liabilities on a company's balance sheet. Essentially, companies with a lot of outstanding loyalty rewards, have a lot of outstanding debt.
… the percentage of points that go unspent can be as high as 85% - Forbes
Blockchain loyalty program software for transactional efficiency
Tackling transaction cost issues
High transaction costs negatively impact the ROI of traditional loyalty programs, which is a major issue for a lot of businesses. With a successful loyalty program, a lot of transactions take place. Especially when you incentivize your community to interact with your content, which is a powerful way to improve customer lifetime values in the long run. Traditional transactional systems are inefficient and time-consuming. They are sensitive to human error, and there are often multiple intermediaries involved.
By using blockchain technology, Crowny’s loyalty software solves these problems. Especially when using incentive-driven interactions, like with the interact-to-earn model, efficiency is key. We leverage the powers of the Solana blockchain, which is one of the most efficient blockchains at this moment, to provide the best possible loyalty & marketing solution. Solana’s performance does not go unnoticed, even Google has decided to seek a partnership with the revolutionary blockchain.
Solana unveils Google partnership at Breakpoint - Cointelegraph
Blockchain loyalty program software and uniform systems
Tackling costly system management and account inactivity issues
Research shows there’s a lack of uniform management systems. According to Statista, the worldwide loyalty management market size is worth $3.65 Billion U.S. dollars in 2022 and is expected to grow to $24.44 Billion in 2029. Across this massive industry, many different systems are used. Even though this may not sound like an important issue at first glance, you might want to reconsider. The research labeled the issue as the most important reason why members are not as active in loyalty programs. Different systems for loyalty programs confuse consumers, resulting in account inactivity.
Loyal customers want to join a loyalty program, but with every individual brand, they are forced to get accustomed to new ways of earning, redeeming, etc. Crowny plays a key role in solving this issue, which is relevant to both employee and consumer rewards programs. Businesses use Crowny’s loyalty program software to launch their program in the mobile application, forming a collection of loyalty programs using a uniform system. Private environments for enterprises are also part of the solution. Crowny will be able to provide this using a white-label structure.
Find out what Shopify’s 4 types of loyalty programs for E-commerce are, how these entirely different loyalty program systems work and how Crowny combines them all.
Optimized redemption with a blockchain loyalty program app
Tackling redemption rate issues
Businesses that implemented a traditional loyalty program experience low redemption rates. Users receive points as a reward but are not stimulated to spend their points repeatedly. That is partially to blame for the lack of actual value the rewards represent. Blockchain-based loyalty rewards are verified on the blockchain network. Because it’s a verified currency, the loyalty points represent more perceived value for consumers. There’s no fraud and complete transparency.
It also allows for trackability, opening many doors for anonymous statistical data tracking. This allows businesses to gain behavioral insights regarding the spending of loyalty points. By combining this with a mobile application with the newest results-driven features, the possibilities to boost redemption rates are endless. Personalized content and tailored offers are just the tip of the iceberg, the opportunities to leverage the benefits are endless. The Crowny App is the perfect environment for businesses to distribute the most relevant messaging with (personalized) rewards. Users receive the most appealing offers and deals according to their preferences and behavior, allowing for a mutually beneficial solution.
To further improve redemption rates, it is also important to provide the proper incentives for engaged customers.
Streamlined acquisition on mobile: loyalty app & socials
Tackling customer acquisition issues
Businesses are experiencing high acquisition costs for loyalty program members. That’s because, in general, there are many barriers in the customer journey. Consumers are experiencing way too many frictions in their journey to conversion, resulting in increased costs for businesses to convert these consumers to loyalty program members anyway. People nowadays are primarily active on mobile devices; on social media and in apps.
Mobile devices function as the collective location for an individual’s online identity. This is the spot where the most efficient acquisition can take place. There is a minimal amount of loyalty programs that have the potential to seamlessly integrate their program with the most popular apps, websites, and social media. In the future, this will only become more important. Crowny offers a solution that fits perfectly in the scope of wishes and demands from both consumers and businesses. Stay tuned to find out exactly how we are going to do that.
We're already cyborgs. Your phone and your computer are extensions of you… - Elon Musk
Your blockchain loyalty program on a mobile application
Tackling program engagement issues
The mobile activity consists of constant interaction from the user with the applications. Loyalty programs should be involved in this to enhance bonding with brands. By combining rewards with content, more positive touchpoints are created. Using a blockchain loyalty program as a mobile application is the perfect way to do so. We’ll discuss some of the opportunities below.
A single wallet platform managing multiple membership programs will drastically improve customer experiences for all programs combined. A single wallet for users to manage their loyalty assets is a massive advantage that allows users to have an overview of the assets they earned in the Crowny App. The assets users can earn in the app are either crypto rewards or blockchain-based loyalty points. Both are an application of a token economy. Crowny plays a key role in providing tokenized economies as a service for businesses, allowing them to create their rewards on blockchain technology.
Seamless omnichannel marketing
Combining our blockchain-based mobile application with social media and the internet enables limitless opportunities for customer journey optimization. With the Crowny Wallet, Web3Auth, and social media integrations we’ll be able to offer seamless omnichannel marketing that’s truly unmatched.
Incentivized omnichannel engagement
In good omnichannel marketing strategies, the channels are aligned and well-coordinated with each other. To boost engagement in all channels, users could be incentivized to engage with the content. Crowny’s unique combination of a loyalty program integrated with social media allows businesses to do this. Users are incentivized to stay up-to-date, but also to share the message on different marketing channels. Read more in our article ‘’How omnichannel marketing strategies could be leveraged even more’’.
Since Covid-19, the most important challenge for loyalty program owners has been the ability to offer seamless omnichannel experiences - Antavo
Additional benefits of a blockchain loyalty program
Retailers can reduce costs related to fraud, audit, and chargeback using blockchain technology. Unlike centralized databases, blockchain is decentralized and distributed across a network of computers. This means that there is no single computer storing the information; instead, it is stored on a network of computers, making it incredibly safe. Another advantage blockchain offers besides data security is the fact that it’s a trustless and digitized network.
With the use of blockchain, businesses can create a decentralized network that tracks transactions with transparency and security. There is no need for businesses to host the database on a centralized server. This can help businesses save money on hosting costs. Managing traditional loyalty programs with a centralized database comes with a significant price tag. Blockchain can help reduce costs in this area as well because it does not require a third party to verify transactions. This means that businesses will not have to pay fees to third parties that help verify transactions through the use of centralized databases.
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