Building customer loyalty programs are much more complex than just handing out rewards. Undoubtedly, a promising reward program compels a customer to choose a particular business place.
As a matter of fact, a study revealed that the popularity of customer loyalty programs is soaring. According to the study, almost 77% of the consumers enroll in some kind of retail loyalty program. Then why does the customer loyalty program need blockchain?
Lack of liquidity
Reward programs operating in silos
Some of the important features are:
A transfer allows up to 6 hops which provide higher liquidity to any reward asset even if no direct market exists. It is capable of automatically matching the asset pairings. Thus it offers near-instant order fulfillment and frictionless transfers.
- Multi-Asset Support:It will use the DigitalBits protocol to support multiple assets and facilitate mass market liquidity
- Distributed Exchange (DEX):
DigitalBits features a built-in decentralized exchange. The exchange has multi-hop technology at the core. With that, it creates a flexible trading environment.
- Easy processes of integration:Existing brands, systems, and strategies do not need to learn new technology or a new app. Custom apps can be easily developed using DigitalBits API and SDK library. Moreover, the protocol can be easily integrated into an existing app.
The platform users need to stake a minimum of 10 XDB to use DigitalBits. This is a protective security feature.
It acts as a bridge between different digital assets.
Pay transaction fee on the platform in XDB
The node operators can earn rewards in XDB
Direct benefits of blockchain-based cryptocurrency rewards
- Lower operational costs
Blockchain-based reward programs are efficient as they offer better system management. Effectively, this helps in better customer and transactional acquisition. As these programs are efficient, they reduce system management costs and prevent fraud. Moreover, projects like DigitalBits add a new dimension to loyalty programs. That’s because they offer mass liquidity to theoretically any token.
- Decentralization of reward systems
In a traditional reward system, the points are stored on a centralized server. In case of a hack or a fraud, a customer can lose all his reward points. But if the customer uses a DEX like DigitalBits for a reward program, he will be in complete control of his reward point assets.
- Near-instant experience
On a highly robust blockchain as DigitalBits, the transactions can happen instantly. Thus, the reward redemption process becomes quick and engages more customers.
- Secure environment
56% of consumers today do not feel comfortable sharing their personal information with brands. As blockchain is immutable, the complete consumer data is secure on the blockchain. With that, a consumer feels secure to enroll for a loyalty program and take full advantage of the same.
- Business opportunities
Loyalty reward programs have proved that they can play a vital role in retaining customers. Using blockchain, brands can create efficient loyalty programs and can engage more customers. DigitalBits is taking a unique approach as it is not asking anyone to change their learned behaviour. Moreover, it is offering protocol integration to existing apps in such a way that both customer and brand continue using the existing app. However, after integration, the app becomes efficient and has access to mass market of 100% transferable assets.
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