Switzerland-based loyalty program infrastructure company Momentum Protocol is creating a one-stop shop for consumers to earn, redeem, and manage their loyalty points on the blockchain.
The ecosystem gives businesses the opportunity to further understand the behavioral patterns of their customers and capture data to optimize consumer profiling and targeting.
Blockchain creates the tokens, monitors token exchange, and manages the log and customer data.
The Momentum Protocol ecosystem manages the loyalty programs, giving access to third-party plugins such as Salesforce and Oracle. Apps created by partners encourage customer engagement through the use of incentives.
For example, consumers could earn points while they use a fitness app integrated with Momentum. The app could monitor their walk to Macy's, and the points could be used to purchase a meal at Burger King.
They could walk into a Macy's department store and receive Macy's special promotion offers to their phone before they have even made their way to the first clothing rack.
Consumers earn reward points anywhere and can use them in any participating program. They can exchange retailer-branded reward tokens into other reward programs or Momentum Tokens.
These rewards are collected in a single wallet, where they can be exchanged between loyalty programs or into Momentum Tokens.
The utility tokens can be used as a rewards and loyalty tokens to reward consumers for their attention, business, brand advocacy and data insights.
It can also be used as a gateway token to convert company branded loyalty rewards into Momentum Tokens, which can be exchanged for other reward tokens or crypto-currencies.
The tokens can also be used as platform payment currency for companies running solutions, as well as an encrypted, decentralised digital currency to be transferred between peers.
The company says that, through the usage of blockchain, the middle man -- the agency -- is eliminated. This will benefits the consumer and gives them higher value of rewards, while a self-regulated approach minimises the risk for any token owners.
Brands can target users in real-time based on smart and comprehensive use of data, including: Location, user attributes and behaviour.
They can also give consumers the right incentives at the right time in their journey to maximise conversion.
They can share their data while retaining control over access and usage.
The infrastructure offers solutions such as visitor and passers-by counting systems, facial recognition, and in-store heat-mapping to identify customer hot spots, data analytics, and crowd control.
The possibilities for a flexible offering tailored incentives to each unique customer can be customised as these kinds of system grow.
Loyalty marketing with blockchain can take the customer far beyond the current coupon redemption offering.
Savvy brands can get ahead of the competition by offering holistic blockchain-based solutions.
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