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Blockchain Technology

5 Ways the Blockchain Can Increase Customer Loyalty And Win Brands’ Battle for Engagement

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With Singapore Airlines and Delta Air Lines having recently introduced a blockchain-based loyalty program and replacing its air miles with cryptocurrency, it shows that blockchain stands to radically transform traditional loyalty programs as we know them, making them more useful, accessible and cost-effective for both brands and customers alike.

So, how is blockchain increasing customer loyalty and revitalising traditional rewards programs?

1. 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.

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. Blockchain also significantly reduces system management costs, thanks to smart contracts that automise processes, all while reducing costs related to instances of error.

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

2. Blockchain encourages increased customer engagement and points redemption.

Loyalty programs are not only difficult to set up, but it is difficult for brands to attract new customers by means of a loyalty program. Blockchain is flipping this on its head by introducing loyalty at the start of the customer journey, as opposed to at the point of purchase.

In other words, loyalty points are no longer an afterthought when they can be exchanged within the brand, with other brands, or for cryptocurrencies or fiat. Better still, the potential for loyalty points to rise in value and get the customer more attractive rewards creates excitement that was never before a part of the loyalty program experience.

Customers are also then driven to check their loyalty programs more frequently since the reward options are more varied, thanks to an ecosystem connecting different programs.

3. Blockchain increases security and therefore encourages loyalty.

All transactions recorded on the blockchain are cryptographically secured, meaning that participants of the network have their own private keys (akin to their own personal digital signature). Blockchain’s immutable and tamper-proof nature also means that every transaction is traceable, which eliminates the potential for fraud or other misuses of the system (which is, again, connected to costs).

Additionally, as there is no single point of failure, customers no longer have to worry about the storage of their private data with large retail companies. On the blockchain, data is stored across the network, which makes it inaccessible via a single entry point. All of these features make customers more comfortable with sharing their details, as well as executing transactions on the blockchain.

4. Blockchain offers a one-stop shop for customers to collect and redeem points.

Customers often suffer from ‘loyalty program fatigue’ due to the vast number of programs available, which subsequently leads to loyalty program inactivity. Blockchain provides a frictionless system, whereby customers can conveniently store all of their collected points in a digital wallet and use the same to make transactions, therefore encouraging engagement.

Blockchain also connects different owners of loyalty programs and makes the points they distribute interoperable: customers no longer have to keep track of dozens of different programs and can do so from their respective wallets. Customers can also exchange their loyalty points with other users, which again increases their utility.

5. Blockchain offers real value outside of the brand context.

Customers often complain about the lack of reward options available with loyalty programs, and along with the lack of cohesiveness, it is easy to see why customers would abandon their loyalty programs. With blockchain, tokens that brands give out are tied to other digital assets which render 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 importantly, these tokens can rise in value without any further investment from the customer.

In conclusion, blockchain’s merits are manifold and effective for tackling the loyalty market’s inherent issues: for brands, blockchain significantly reduces costs, tackles security issues, and increases customer engagement, while for customers, this means a convenient use of different loyalty programs in one go while profiting from a myriad of redemption options, which ensures that they will stick around in the long run.

qiibeeThis guest post was contributed by Gabriele Giancola, the co-founder and Chief Executive Officer of qiibee, the Swiss loyalty token protocol helping brands around the world run their loyalty programs on the blockchain. 

*Readers should do their own due diligence before taking any actions related to the company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this article.*

Blockchain Technology

IBM, Ford, LG Chem and Huayou Cobalt Join Forces in Cobalt-Tracking Blockchain Project in Congo

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cobalt blockchain congo

Technology giant IBM, carmaker Ford, China’s Huayou Cobalt, and South Korean cathode maker LG Chem have partnered in a new blockchain project that is set to monitor the supply chain of cobalt in the Democratic Republic of Congo.

Making Cobalt Mining “Cleaner” in the Congo

The project is meant to help manufacturers ensure that children are not involved in the mining process for cobalt that is used in lithium-ion batteries and neither does it fuel any type of conflict, according to a report by Reuters. Responsible-sourcing group RCS Group has been overseeing the pilot project since December of last year until it was officially announced on Wednesday.

cobalt blockchain congoIn the past few years, companies have been put under pressure by investors and consumers to prove that no human right abuses occur when minerals are mined. However, this has been a huge challenge given that manufacturers had no way of tracking the entire journey of the raw materials.

The project will focus on the industrially mined cobalt in Congo and monitor the supply chain process of lithium-ion batteries that are used in Ford vehicles.

DR Congo, a country that is afflicted with political tension and civil war, has a huge concentration of cobalt that is needed in high volumes for electronic devices and electric vehicles. The outcome of the elections that were held in December are still being contested to date despite being Congo’s first democratic elections to be held in six decades and were geared towards change of power.

Blockchain-based Cobalt Tracking Platform

According to RCS Group, the IBM blockchain platform may be used to incorporate other minerals as well as give artisanal miners an opportunity to be part of a blockchain-based network of authorised participants in the future.

The pilot project, which is expected to end around mid-2019, will see cobalt from the Huayou’s industrial mine be placed in secure bags, recorded onto the blockchain and tracked from the mine and smelter to the cathode and battery plant owned by LG Chem in South Korea and then to Ford’s plant in the United States.

Minerals can be difficult to track given that they are often mixed with minerals from different sources in the smelting process. To counter this, the RCS project is expected to implement best practices by making use of the guidelines developed by the Organisation for Economic Cooperation and Development.

IBM also has plans to explore the probability of chemical analysis using artificial intelligence to identify the origin of cobalt and certify that clean cobalt was not fused with minerals that were sourced in an irresponsible manner.

Speaking to Reuters, the General Manager of IBM’s mining and industrial sector business, said: “There is no fool-proof method, but you have to keep the ball moving forward, to keep raising the level of accuracy. Blockchain has been proven to be a very effective technology in raising the bar.”

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Blockchain Technology

ConsenSys Partners With Black Girls Code to Teach Blockchain Coding to Young Women of Colour

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Black Girls Code

ConsenSys – the leading Ethereum development lab – has partnered with the non-for-profit organisation Black Girls Code to increase the number of young women of colour in the computer programming community.

ConsenSys and Black Girls Code to Teach Blockchain Coding to South African Girls

Black Girls Code

Image by BlackGirlsCode.com

With its focus centred on impacting young women with blockchain coding knowledge, ConsenSys and Black Girls Code have decided to create a comprehensive blockchain technical training curriculum that will cover topics such as cryptocurrency, the fundamentals of blockchain technology as well as solving for user experience problems. Through this, young women of colour will be provided with everything they need to make an entrance into the blockchain industry.

According to a recent report by Forbes, young women between the age 7 to 17 across Black Girls Code chapters in Oakland, New York City, Atlanta and Johannesburg, South Africa will be the focus of the training program.

This partnership program will represent the very first blockchain training program on a national scale for young women of colour.

The Black Girls Code Token

Using the black girls code token, these young girls will be able to practice what they have learned. They will use the token to create their own cryptocurrencies as well as their own smart contracts.

So far, about 60 students have been introduced to blockchain basics (from Solidity development to aspects of cryptocurrency philosophy) through the program.

Speaking about the effectiveness of the project, Kimberly Bryant, Black Girls Code’s CEO stated that:

“Our BGC tech divas have embraced blockchain technology with vigour and are excited by its potential to create equity and impact on a global scale. This partnership is an extremely important addition to an already vibrant ecosystem which will flourish by this influx of fresh ideas, perspectives, and insights.”

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Blockchain Technology

CannaSOS Launches its Anonymous Cryptocurrency Wallet, PTPWallet, for Android and iOS Users

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PTPWallet

CannaSOS has completed the development of its PTPWallet – a hybrid cryptocurrency wallet that has been created to connect businesses and users in the crypto space. The mobile wallet was launched on the Apple App Store and Google Play Store and is now available for download.

CannaSOS’ Contribution to the Cannabis Industry

CannaSOSCannaSOS is a social platform for the Cannabis industry that hopes to change the way cannabis enthusiasts interact with their peers and businesses. The company developed the PTPWallet in order to address the need for a payment processor for the cannabis industry. However, a change in the company’s long-term objectives saw CannaSOS develop a wallet that would serve all industries worldwide.

Oleg Cheine, the President and Founder of CannaSOS Corp, said in a press release: “We are very happy and proud to announce that after 11 months of development, PTPWallet is finally live on Google Play Store and Apple App Store. We see the application bridging the gap in the retail sector; something that is crucially missing in the crypto industry.”

The PTP Wallet

The team behind PTPWallet considers it a “revolution”. This is based on the fact that the cryptocurrency wallet includes a centralised and decentralised technology that seeks to ease the use of its users. Although funds that are sent or withdrawn from the PTPWallet undergo the normal decentralised way, all transactions made within the wallet undergo centralised technology. This means that all transactions done within the wallet are instantaneous, fully anonymous and that the platform can process millions of transactions each second.

The PTPWallet has an inbuilt referral program and a game called ‘Drain the Bank’ that is akin to a lottery. In addition, the wallet provides users with the ability to build a business page as well as build a loyalty program that provides users with cash back in crypto for purchases they make. The wallet also gives users the ability to send digital currencies via email and SMS making it the only wallet with such a feature.

Cheine went on to add: “After conducting many surveys, businesses, for example, don’t really care about decentralised or centralised technology. They all want to use crypto but have to deal with slow transactions speeds and for there to be too much transparency – which could lead to potential hacker attacks or robberies. So, what we did is we incorporated both centralised and decentralised technology, flopped in a bunch of cool new features and now businesses are more connected with our users. The app is free to use and setup takes only around three minutes when you include the business page and loyalty program.”

CannaSOS gave users who installed and tested the PTPWallet 1,000 crypto coins for the first six days after it launched in order to celebrate the launch of the app. Users who download the app after the first six days will get 800 crypto coins for the next six days and the coin amount will keep decreasing.

The app is currently available on both Apple App Store and Google Play Store.

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