Customer loyalty and involvement can either build up or destroy a business. Therefore loyalty incentives programs are a wise investment for all types of businesses. However, today there seems to be a problem with loyalty reward programs. What exactly is the problem you may ask? You and almost everyone you know, must be members of some loyalty program or the other. The range and extensiveness of reward programs that currently exist are overwhelming to say the least. For example, Amazon Prime, which is Amazon's upfront fee program providing free shipping and media services or the Common Threads Initiative, Patagonia and eBay’s joint loyalty program allowing customers to resell clothing purchased from Patagonia on eBay or you could consider Virgin Atlantic Flying Club, Virgin Atlantic’s tiered points program that connects customers to services like car rentals, airport parking, massage services, and hotels to say the least.According to the 2017 industry standard COLLOQUY Loyalty Census, enrolment in loyalty programs across various businesses in the United States increased by 20% to 3.32 billion in 2015 from 2.65 billion just three years prior, and has more than tripled since the turn of the century.
Since loyalty rewards programs have been increasing at such a high rate for so long, why do we believe they are now "rapidly deteriorating" across all industries? The reason is really simple: costly transactions, low redemption rates, account inactivity, time delays, system maintenance along with customer acquisition expenses, and lastly low client retention are probably all contributing to loyalty and rewards programs not being able to reach their full potential. In the United States, for example, only 42% of those eligible for loyalty programs were active members in 2015, according to the 2017 COLLOQUY survey. The 2016 Bond Loyalty Report, which polled 12,000 Americans and 7,000 Canadians on their 280 loyalty programs across all industries, found that the number of active members was greater, but still only 50% (as of 2016). One-fifth of individuals in the 50 percent have never really redeemed their prizes. Aside from the fact that consumer inactivity has an impact on brand loyalty, unclaimed awards are accounted for as liabilities on firm balance sheets. Members of loyalty rewards programs who do not redeem their points are approximately 7 times more likely to leave from one program and join another, according to the 2016 Bond Loyalty Report. There are various reasons for these inefficiencies, but the lack of uniform administration systems throughout loyalty and rewards programs, which customers find confusing and is a key source of members' lack of involvement, is the most important.
Integrating the GOPX Rewards program into an interconnected loyalty network could be a potential solution, but such collaboration is difficult in a field with a mixture of digital infrastructure and security obligations where both competitive proprietary information and customers' personally identifiable information (PII) are at risk. Large program operators with scaled and matured management systems, on the other hand, would be naturally cautious to join an interconnected network that could interfere with their own successful interlinking initiatives (e.g., a large credit card issuer) and erode their competitive edge. Collaboration frequently entails the introduction of intermediaries, which increases the danger of information leakage while also adding layers of administrative costs and operational logistics. Finally, a general lack of proper digitization across programs prevents many programs from being interconnected, and is a key source of loyalty reward programs' lag periods between reward points being made available in a way that allows customers to spend them at the most convenient times. As per The 2016 Bond Loyalty Report, 57% of respondents wanted to interact with loyalty programs via a mobile device, however 49% didn't know if their programs had mobile apps. In an ideal scenario, these clients would access various loyalty rewards programs on a single app, similar to a digital wallet, lowering lag time even further and improving the customer experience. Many inefficiencies will be eliminated by blockchain, which is a decentralized cryptocurrency with a radically innovative methodology to transact and store information in a confidential, permissionless, electronically interconnected network. You’ll discover further how it will curb expenditure while meeting the needs of various types and sizes of loyalty rewards programs, all while improving customer experience by allowing users to use most, if not all, of their loyalty points programs that may be accessed through a single digital wallet. We also feel there is another compelling reason why blockchain is an excellent solution for the problems that plague loyalty rewards schemes. We remind people who are familiar with blockchain (and those who aren't) that the most successful implementation of blockchain to date is the digital currency, Bitcoin.
Blockchain is the appropriate engine for managing transactions between numerous parties since loyalty rewards are comparable to digital cash like GOPX tokens. The GOPX Rewards program would eliminate many inefficiencies by implementing blockchain technology, including lowering costs and enhancing user experience. To decrease customer misunderstanding and boost member involvement, the GOPX Rewards program uses uniform administration systems. Because of the diverse digital infrastructures, information gaps, and lack of middlemen, it is challenging to integrate disparate programs into one interconnected loyalty network. To find out more about how our GOPX Rewards Program can benefit your company, get in touch with us right away.
For more details and information email us at email@example.com