Blockchain is often heralded as being the technological breakthrough that will revolutionize how we think of money and transform the financial industry. However, there are numerous other industries and fields beyond money and finance that the blockchain is most suited to revolutionize. One remarkable contender is the loyalty rewards industry.
It is well known that user acquisition (or act of gaining new users), is a marketing strategy designed around capturing an audience and convincing them to use the business offering.
This is typically accomplished by advertising campaigns among numerous other strategies. Without a user acquisition strategy, it can be tough for organizations to discover and convert new user. The business entities spend a great deal of money in building up both effective acquisition and retention strategies. Loyalty programs are one of the effective acquisition and retention strategies.
Brands investing in customer loyalty can help drive engagement and retention and draw in new customers essentially by designing a program that rewards existing customers and requests to new ones.
Introduction to Kartblock’s blockchain based customer loyalty programme – Kartblock Rewards
Loyalty and rewards programs are popular among customers however both program owners and individuals can battle to get the most out of these schemes. Blockchain rewards programs can offer the transformative opportunity to reduce costs, attract more participants and to provide flexible and faster redemption for members.
Kartblock has built a unique blockchain based customer loyalty programme, a tool for consumer acquisition and retention which can be used by businesses to engage and appeal both existing and new customers.
On this blockchain-based loyalty program, reward points will be issued in the form of Kartblock tokens.
The Kartblock Token is the native Blockchain currency of the KartBlock ecosystem. It is based on the ERC 20 algorithm and protocol. The Kart tokens will be sent, received, and stored via kart Block wallet of the user.
Intrinsic nature of Kartblock tokens
The token issued to a subscriber member has an inherent nature which determines its licit status. A licit status of a token may be characterized as utility token if:
A. Token allows purchasing of services:
This is the threshold guideline for a token to be called a utility token, i.e., that it can be used to purchase a service(s) on its native platform.
B. Token has a self-sustaining eco-system:
An ecosystem that connects the buyers and sellers for that particular service and allows wholesome transactions that utilize the native ecosystem tokens. Any utility token needs to be backed by such a self-sustaining ecosystem.
C. Token applies smart contract:
One other vital feature of a platform with utility tokens is enabling of purchase of services by smart contracts.
Having its own eco-system to operate and functional architecture to implement blockchain and smart contract for purchase/use of services makes KartToken a utility token.
Before discussing the whole abstract of Kartblock Rewards, let’s have a glimpse on Kartblock ecosystem whose at center lie the Kartblock Tokens.
- The front end e-commerce platform is referred to as 27Avenue (www.27avenue.com). KartBlock is the back-end ecosystem integrated with blockchain that supports the functioning of 27Avenue.
- Users can buy merchandise from the 27Avenue store using KBT and other tokens with whom KartBlock has a collaboration with.
- The payment will be processed by KartBlock. The vendors on the 27Avenue platform will be settled in tokens.
- Because the payments are processed on a blockchain, they are stored in a decentralized, secure platform where payments would be processed quick and seamlessly.
- KartBlock will soon set up and manage a transaction. The transaction will deal in KBT and other tokens which have entered into agreements with KartBlock. This transaction can be used by vendors to redeem the tokens and by users to buy additional tokens.
In Kartblock Reward system, a certain portion of KBT shall not be available for subscription during the time of sale. These tokens shall be distributed as a part of the loyalty programme to the existing customers. The token distribution can be on account of diﬀerent contributions by the customer to the business. Unlike any other e-commerce platform, the tokens would be distributed not only in proportion to the number of purchases made from the platform but also for other contributions like reviewing a product, referring a product to someone else, etc. For every action of the customer, a certain number of KBT shall be allotted to the customer who in turn can make purchases using KBT from 27Avenue.
What drives Kartblock to use blockchain for rewards programs?
Customer loyalty and rewards programs are transactional in nature, with huge numbers of participants. These are normal attributes of blockchain applications, which is the reason the advantages of embedding decentralized principles in the operations of loyalty and rewards programs are so solid. Here’s what blockchain rewards programs can enable you to accomplish:
- Cost efficiency.
Blockchain delivers efficiency improvements for loyalty programs both from a transactional and a customer acquisition perspective. This is partially on the grounds that blockchain lessens the requirement for intermediaries. Loyalty program transaction costs are high, merchants pay third parties around $35bn per year to service credit cards fixing to loyalty focuses. The degree for blockchain to deliver savings is totally open.
- Improved ease of use.
Customers get baffled with rewards schemes since they frequently wind up with too many accounts, each with excessively few points, making it impossible to seriously reclaim. Blockchain can give the chance to bring together loyalty rewards, making it simpler for individuals to make the most of their rewards, thus encouraging loyalty.
- Increased availability.
Loyalty programs are customarily opaque systems to their proprietors. Blockchain can open up access to loyalty programs, attracting more commercial participants. In the meantime, the transparency and proficiency of blockchain imply that individuals don’t need to trust that rewards will credit, frequently an issue where the program proprietor must credit focuses for cash spent at independent merchants.
- A theme quickly emerges:
Blockchain is capable at solving a significant number of the challenges experienced by transactional for example, loyalty programs. Apply blockchain to loyalty programs and these networks wind up less expensive to run, more accessible and simpler to utilize.
By harnessing the full capabilities of the blockchain, loyalty programs can amuse consumers. That should benefit enough for brands to embrace the blockchain for their loyalty programs. Join our passionate community of recruitment professionals, cryptocurrency advocates, and blockchain developers through telegram t.me/kartblock_Community