Blockchain-based loyalty programs are a new rising trend and finance, banks and insurance companies can take advantage of this technology.
While online, customers look for the best deals also on banking, financial and insurance services.
Financial services industry is on the brink of a digital transformation and requires a tool to incentivize online interactions.
Trakti Smart contracts can boost your customer loyalty programs.
In the last few years, finance firms have started making significant investments to enhance customer experience and build solid relationships with their clients, developing new digital products and capabilities.
Loyalty programs are an effective way to provide personalised experiences to customers.
The level of client retention provided by loyalty programs is tangible. They can develop long-lasting trust in clients by building long-term relationships.
When a purpose is aligned with a customer’s values, it drives loyalty to the brand, with an increase of more than 8 times in loyalty.
Loyalty programmes can act as a booster to promote content, inform and educate customers, and extend the brand’s online presence creating new touchpoints in the customer journey. Adding personalisation, exclusivity and engagement across all the different channels it’s a must for businesses to be able to satisfy customers and win over competitors.
Customers are not interested in loyalty programs that don’t add extra value.
Traditional points-based schemes are often not agile enough to intercept customer expectations so rapidly changing. The risk of generating a breach in data represents a big challenge in these cases. Ensuring that customers’ wallets would never be exposed to bad actors, and fraudulent or fake websites is a priority.
Traditional loyalty programs have become expensive to run and can lead to frustrating customers. They require customers to create accounts and register, offer limited reward options and customers can lose track of rewards points.
Loyalty programs need to be reshaped.
Blockchain can offer a solution and here is where Trakti can help.
Trakti is a negotiation and contract lifecycle management platform integrated into the blockchain. Through our Smart contract module, you can monitor contract execution, define and enforce rules, transfer ownership of assets and automate process payments.
Over the next decade, technological innovations will radically change how financial services firms operate and assist their clients.
Blockchain and tokens are tightly connected and offer various applications and new business opportunities.
A blockchain loyalty program can certainly play as a “system facilitator” to reduce costs by providing a more secure, transparent customer experience.
A recent Gartner Research on Forecast, states that the value of blockchain for businesses will exceed $3.1 trillion by 2030.
Through blockchain, companies can decentralise their loyalty programs, and consumers can enjoy the full benefits of this technology. It can add value to point treasury, and point exchange operations and boost the application of loyalty programmes by adding beneficial advantages and improvements, such as:
- Offering cryptographically secured, immutable, and timestamped transactions
- Reducing losses from fraud and error through Smart contracts
- Allowing customers to redeem their points faster and more efficiently
- Attenuating liability issues
- Reducing management and transactions costs
- Lowering friction in the system
By giving consumers control over updating data and collecting rewards in real-time, blockchain helps brands to build trust and create reward programs that can reduce mistakes and cut costs.
Customers will have greater ownership and flexibility over their rewards and a more frictionless overall experience.
NFTs as an Innovative Tool for Customer Loyalty
One particular use case of blockchain technology is the Non-Fungible Tokens or NFTs. Acting as a certificate of ownership, NFTs are tracked on a blockchain where they uniquely represent any piece of media or asset.
Banks have used points systems to build customer loyalty and to create brand awareness. NFTs can move further. They can complement credit card products by enabling their issuers and creators to build dedicated communities.
Tokens allow more flexible management of the loyalty point, which can easily and securely pass through the users’ crypto wallets. A consumer could buy an NFT in the standard way, pay with a card, and receive the NFT in their wallet.
HSBC bank has recently moved toward NFTs and metaverse. And it’s not the only one. SEBA Bank also began offering NFT custody for Ethereum-based, blue-chip NFTs. Swiss Bank Sygnum launched its metaverse virtual space to inform the community on new products and educate on the future of finance.
How finance might use NFTs to increase loyalty
- Enabling access to exclusive and ad hoc content, webinar or online workshops
- Offering benefits, bonuses, rewards, or points
- Elevating customers to higher tiers
- Enabling redemption of NFTs to get high-value benefits
Governed by Smart contracts, NFTs offer new ways to reward customers and allow banks to create new online experiences. Blockchain technology allows the exchange of tokens in a secure way and without any intermediaries. Being programmable, blockchain can follow certain rules and run automatically through the use of Smart contracts.
NFT technology is one of the great opportunities provided by blockchain. Don’t miss your opportunity to reshape and innovate your loyalty programme.
With Trakti Smart contracts, the power of blockchain is at your disposal.
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