Its capability to disrupt many industries is indisputable. Spil for its potential to bring significant switches to the loyalty prizes landscape, the future certainly looks auspicious. Blockchain technology can overeenkomst with the challenges te the loyalty prizes industry. Albeit it is not a panacea for every single problem, there is certainly lots to benefit from if you do determine to adopt the technology meaningfully.
The Anguish Points te Loyalty Programs
For businesses focused on finding and implementing effective ways to retain customers, loyalty programs are an option worth considering. Whether they succeed te building an attractive loyalty program that will permit them to engage with their customers, tho’, is an entirely different story. According to statistics, almost 50% of consumers that register for a loyalty program never use it. It seems that the terrific number of various loyalty programs available brings a loterijlot of confusion, which eventually makes consumers leave the programs. Plus, there are intermediaries ter the prizes delivery and redemption process that cost businesses fairly a loterijlot.
The entire point of having a loyalty program is to improve customer practice and consequently merchant sales and revenues. At the uur, the industry is significantly fragmented, has become dramatically ineffective, and lacks slagroom for interoperability. It is no wonder consumers see no substantial benefits from the different loyalty programs on offerande. Merchants, on the other mitt, are also called to overeenkomst with the cargo of liability that comes palm ter mitt with running a loyalty program.
But, what would toebijten if there wasgoed a uniform management system te loyalty programs? A system that would permit transactions among numerous parties using a broadly-accepted currency? What if wij could access several loyalty programs on a single app that could manage the points wij have collected? It is beyond doubt that having a universally-embraced loyalty currency will indeed encourage consumers to spend more and more often.
This is where blockchain technology comes ter, providing a device that can help cut out intermediaries and permit the creation, redemption, and exchange of prize points securely and instantaneously, across a broad range of providers, programs, and, why not, industries.
Blockchain and the Future of Loyalty Programs
There are many colossus companies around the world already developing blockchain-based systems to trade loyalty points and to work on fresh ways blockchain technology could power loyalty programs (i.e., Ribbit and IBM).
What is more, the technology even has the potential to give consumers options spil vanaf how to spend their points (i.e. te a dining facility, to upgrade a flight toegangsbewijs, etc.) while the prizes may also be collected, redeemed or transferred from merchant to merchant, merchant to consumer, or even consumer to consumer.
The key to the success of a loyalty prizes program is the use of a global cryptocurrency and secure digital payment system. You have very likely read and heard a lotsbestemming about Bitcoin, which wasgoed the very first player te this spel. However, having a product or service monopolizing the market can never mean good news for the consumers. Te fact, the presence of competitors gives way for more pioneering, more customer-centered, and more advanced technologies to provide the solutions people need, swifter, cheaper, more accessible, and more efficiently.
This is what has inspired the masterminds behind Elements, the fresh cryptocurrency that offers a unique perspective on the way merchant loyalty programs are being implemented at the ogenblik. “Elements” saves merchants from loyalty program liability issues and suggesting consumers a greater multitude of options (and incentives to use Elements coins) when transacting with merchants across a broad spectrum of industries, from travel and leisure to hospitality and retail.
Elements, a blockchain-based cryptocurrency, offers excellent plasticity te the way a merchant can create tokens and bounty cards for their customers while permitting SME (petite and medium-sized enterprises) with an already (well) developed loyalty program to provide value-added prizes to other businesses, which helps stir their loyalty program to the next level.
However, the solution is not attractive only to the big players. Petite business owners with no loyalty program up and running can get access to an interlinked network of other businesses and commence suggesting loyalty points to their clients, points that could be redeemed te any other merchant ter the network. This also gives more plasticity te managing collaborations and deals. Plus, it permits businesses to tailor their prizes to their individual clients.
Let us not leave behind that merchants (te fact, practically everybody) can mine ELMs (Factor coins) for FREE and acquire coins, which is a massive overeenkomst for all parties involved.
Eventually, customers see more liquidity ter their prizes and get to choose exactly how they wish to redeem their points. They also have a telling spil vanaf which of the suggested wallets suits their needs the most. With Elements, they could use the points earned to make a fresh purchase or even exchange them for fiat currency (i.e., USD, Euros, etc.) or cryptocurrency. For merchants, adopting Elements will help increase customer satisfaction, sales, and visibility, all vital components of every marketing strategy.
That aside, all transactions ter the network are validated with a delegated proof-of-work-based overeenstemming algorithm (PoW), which makes the system scalable and on par with the transaction speeds one can practice when using financial services like VISA. That aside, Element’s PoW mining monster with X11-changed hashing algorithm permits for secure transactions while suggesting a 30% less wattage te GPUs.
To sum up, some of the advantages of Elements are spil goes after:
- Merchants can mine for coins free of any charge. This reduces the cost of liability dramatically. One of the largest challenges faced by merchants is solved.
- Both merchants and consumers can use a single currency accepted by many merchants across a multiplicity of industries to transact with one another.
- It is unlikely for customers to counterfeit their loyalty points spil all transactions are recorded on the immutable ledger.
- “Elements” doesn’t store consumers’ information, which ensures their privacy remains intact.
- Transactions with Elements’ blockchain are processes ter real time (almost instantly).
- Customers can purchase products using their Elements loyalty coins or exchange them for cryptocurrencies or fiat currencies, depending on their needs.