One of the major challenges for a business is to keep its customers motivated in their participation behaviors. Forbes 2019 statistics on customer experience mentioned the top reason customers switch brands because they feel unappreciated for their actions.
Customer Loyalty program practices have been under operation by a wide range of business industries, including retail, airlines, travel, hospitality, car rental, and finance. Generally, the customer’s coins or points with the loyalty programs can easily be redeemed in various forms such as perks, goods, and services.
Despite the worldwide acceptance and popularity of loyalty programs, it is evident that customers are becoming disinterested for several reasons: frequent changes in the company described rules, unattractive offering, the problem in generating redemptions, unable to understand the rules, and many more.
Blockchain is viewed as a potential solution to the current customer loyalty strategy problems. The technology is expected to reform the customer loyalty program strategies and influence a business’s economic infrastructure. It’s been an area of research for several prominent giants (such as IBM, Deloitte, PwC, KPMG, etc.) and conclusively proven to be a robust solution to improvise customer retention and brand engagement.
Blockchain-based loyalty programs are designed to enhance the feasibility of loyalty programs by creating a comfortable and faster engagement process for the customers to access their earned points and redeem them anywhere, at any time securely. It establishes trust between brand and customer, enabling peer-to-peer (P2P) connection with transparency. It also facilitates real-time multibrand exchanges. Blockchain-based customer loyalty programs motivate perceivable value in customers and empower economic utility. Customer psychology will get influenced by trust in the brand economic infrastructure supported by blockchain. It encourages the customers’ learning curve on the application. This ignites the self-fulfillment nature in customers as they feel rewarded for spending their time on the application. It also facilitates customers to involve in further social interactions. This eventually results in influenced participation behavior among customers towards loyalty programs.
The significance of customer psychology for brand engagement can never be overlooked while creating promotional business strategies. Several prominent brands have acknowledged the importance of customer psychological self-achievement and satisfaction. Kwegg understands the importance of customer retention for the businesses and customers’ expectations from a brand loyalty program. Kwegg has implemented this perspective keeping the most trusted technology as a platform-Blockchain.