Brand loyalty impacts your day-to-day life more than you might realize. From buying your morning coffee on an app and collecting points to getting free samples and gifts on your birthday, customer rewards have become a huge part of how we shop and connect with brands. They are also a powerful tool brands can use to build loyalty and gather data from their customers.
There are a few issues with loyalty rewards programs in regards to how they’re operated and utilized. Traditional programs don’t consistently lead to results and vary by industry. Some businesses find more value in the customer acquisition aspect of loyalty programs, while others prioritize the data they procure through loyalty initiatives. The lack of standardization ultimately impacts consumers. Shoppers who over-enroll in loyalty programs often experience fatigue from all the marketing materials they receive from retailers.
That said, loyalty programs can benefit from a major upgrade by utilizing technology such as the blockchain to improve the way retailers manage and utilize their loyalty programs so they are more mutually beneficial for shoppers and retailers alike.
Blockchain technology is revolutionizing data management across all industries and has significant potential to make rewards programs more efficient. Using a decentralized data management system, retailers can create a more secure data management infrastructure. Shoppers can feel confident in opting into programs that keep their identity safe, without fear of a scary data breach.
We at Shopin are using blockchain to create an economy of data that incentivizes retailers and shoppers to work together. The Shopin Token serves as the medium for data exchange and maximizes the use of blockchain technology in a few different ways. Shoppers can create a Shopin profile and consent to how, where, and when their data is used by the retailers. Retail partners can then use that data to serve up the most accurate product recommendations based on shoppers’ purchase history data. The Shopin Profile and Token also serve as a convenient, universal reward system across all participating retailers, helping drive brand loyalty and a stronger, more direct connection between retailers and shoppers.
The future of retail relies on how brands can fine-tune how they communicate with and engage their customers. By focusing on the right consumer base to bring in new shoppers, and rewarding those who consistently return, retailers will always have a pulse on their business and can creatively market themselves accordingly. In return, customers will keep coming back to brands that they feel understand their values and interests the most.
It’s the gift that keeps on giving — or shall we say, rewarding?
