Concerning the ongoing businesses’ economy, Customer loyalty and brand engagement can make or break companies. Enacting reward programs is one of the most adapted strategic investments for all kinds of businesses. Loyalty programs are under practice by a wide range of industries, especially e-commerce, finance, retail, airlines, and tourism. However, its mass acquisition has diminished the excitement among customers. The cutting-edge technologies and new business strategies in conjunction play a vital role in building brand loyalty among customers.

What is Blockchain Technology?

Blockchain is a Digital Ledger Technology (DLT) with a peer-to-peer (P2P) connection in a decentralized database. It’s basically a public registry of who owns what and who transact what to whom. These transactions are under protection by cryptography, and it overtime stores the transaction history, locked in the data blocks. These blocks are cryptographically linked together and are secured. Blockchain enables immutability, security, preserving history, and transparency of data records. These characteristics strengthen trust in the system, ensures data protection, and reduces transaction costs for all participating parties. Moreover, Another significance of blockchain is smart contracts describing the contract terms via logical expressions. These programs eliminate the need for intermediaries and reduce moral hazard with a trusted engagement of parties.

Implementation of Blockchain on Customer Loyalty strategies

The application of Blockchain is plausible to come up with several benefits and will not completely discard or replace existing customer loyalty programs. Instead, it expects to enhance and maximize the utilization of loyalty programs. Blockchain-based loyalty programs are better and will transform customer experience and value. All customers’ micro-interactions will be under record following transparency and easy monitoring techniques. Therefore, all the participated customers will get appreciated with exciting rewards. 

The airline industry is one of the prominent sectors in the adaption of blockchain-based loyalty programs. Airline companies like Air Asia, Singapore Airlines, and Lufthansa rebuilt their air miles benefit schemes into digital wallets using blockchain and gamification techniques via mobile devices. To provide a better customer experience and brand value with expanding brand loyalty. These platforms automate data fulfillment procedures, records and provide a transparent transaction history between the airlines and participating partners, resulting in increased efficiency and reduced, resulting and back-office administrative and transactional costs.

Another use case of such an implementation is Gozo. This startup provides a platform for loyalty and rewards programs for travelers through tokens that can be maintained in an electronic wallet and exchanged with travel rewards or cryptocurrencies and used across different vendors.

Blockchain application in the supply chain management enables transparency and trust among users. Food industries and several restaurants are also executing blockchain loyalty programs to improvise their marketing strategies and ensure food safety. 

The global loyalty management market size expects to grow from USD 7.6 billion in 2020 to USD 15.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period. It indeed increases the competition in the market but also raises the expected standards of brand loyalty strategies.


Implementing Blockchain in brand loyalty programs will prove beneficial to both companies and consumers. The approach will help build trust among two parties to execute ingenious technology like Blockchain under practice. It will simplify and streamline the management of loyalty schemes, making them more attractive for consumers and less expensive for companies. It facilitates organizations and brands to offer a better value proposition to their customers.