Virtina

Virtina

STRATEGIZE . OPTIMIZE . SOLVE

Call
  • About Us
  • Solutions
    • By Platform

      • WordPress
      • WooCommerce
      • Magento
      • BigCommerce
      • Shopify
      • Wix
      • Odoo
      • Volusion
      • PrestaShop
      • Vtex
      • OpenCart
      • 3dCart
    • By Industry

      • Manufacturing / B2B
      • Retail
      • Food & Beverages
      • Fashion & Apparel
      • Jewelry
      • Electrical & Electronics
      • Medical & Healthcare
      • Automotive
      • CBD
    • By Service

      • Strategy
      • Roadmap
      • Prototyping
      • Platform Selection
      • Design
      • Development
      • Replatform
      • Integration
      • Core Web Vitals
      • Page Speed Optimization
      • Performance Optimization
      • CRO
      • SEO
      • Data Backup
      • Support
  • Portfolio
  • Resources
      • Blog
      • eCommerce News
      • eCommerce Tips
      • Project News
      • Case Studies
      • Success Stories
      • Events
      • Extensions
      • Partners
      • Affiliate Program
      • Videos
      • Tools
        • Cost Calculator
        • ROI Calculator
        • CRO ROI Calculator
      • FAQ
  • Clients
      • Agencies
      • Direct Clients
      • SaaS
  • Hire Us
    • Development

      • Hire WooCommerce Developer
      • Hire Magento Developer
      • Hire BigCommerce Developer
      • Hire Shopify Developer
    • Migration

      • Migrate to WooCommerce
      • Migrate to Magento
      • Migrate to BigCommerce
      • Migrate to Shopify
  • Contact us

CONTACT US

(888) 478-4799

sales@virtina.com

Blockchain and eCommerce Loyalty Program

November 27, 2019 | 0 comments | Ecommerce Marketing,User Experience | Updated: July 01, 2021
  • customer loyalty program
  • ecommerce loyalty program

Is Your eCommerce Store Ready for the Google Core Web Vitals Update?

Unoptimized websites will lose 70% traffic. Don't let this update KILL your eCommerce business!

Talk to Experts
  • facebook Share
  • twitter Tweet
  • linkedin Recommend
  • pinterest Pin

If there is one thing that the eCommerce business retailers value equally, it would be their customer loyalty. Any entrepreneur can vouch that a loyal customer is one of the greatest assets he/she can get. And underestimating its value could be the worst mistake you can make as an entrepreneur. Repeat customers generate 40% of the store's revenue. Loyal customers not only spend more but are also more likely to return and they hold a higher chance of conversion than others. With the number of competitors in the eCommerce business industry on the rise every day, it is quintessential that you build a strong relationship with your online shopping customers. 

But how do you go about doing that? What is the best practice to earn your customer’s loyalty?

Based on advanced Analytics, the most obvious answer to this question would be a customer loyalty program. For those of you who do not know what a customer loyalty program is, it is a rewards program with blockchain loyalty tokens offered by a company to their customers who make purchases regularly/frequently. Almost all the eCommerce stores today have a customer loyalty program, so how can you make your eCommerce store stand out from the rest of them? Step away from traditional loyalty program and step into blockchain platforms to reap rewards from the performance of blockchains.

“77% of shoppers say discounts can influence where they shop, and 48% say they can speed up the decision-making process” - RetailMeNot

The answer you are looking for could be a Blockchain Loyalty Program. Blockchain technology has been around for a while now; however, it gained popularity with the introduction of cryptocurrency (bitcoin) by the developers of blockchain technologies as ideal loyalty point currencies. These loyalty point currencies have become customer's choice now. Blockchain is a decentralized method that keeps track of your account while making transactions. In other words, as efficient online services, Blockchain keeps track of your account at all times, from the very beginning without losing any data. In loyalty programs using Blockchain technology, you can keep track of your customer’s loyalty points from the very beginning. This means that your customers will neither lose their loyalty points nor will its validity run out. Blockchain technology could possibly perfect the customer loyalty program for you and the survey of blockchain technologies have confirmed the same. It is truly essential that the technology revolutionize customer loyalty rewards while eliminating discrepancies of conventional programs.Thus, contributing to customers satisfaction with its enhanced functionality as top loyalty schemes.

What is Blockchain?

The concept of Blockchain Technology has been around since the early 1990s. It wasn’t until 2009 that Blockchain gained popularity - when the cryptocurrency bitcoin used Blockchain as the ledger of transactions and blockchains tokens. The Loyalty scheme is widely accepted now!

“Blockchain is a decentralized method by which you can securely store transactional data without any transaction costs.”

The “blocks” in Blockchain are storage units where information about the transactions are stored in digital format. The information thus stored in the block may include date, time, amount, and parties participating in the transactions. Each block is assigned a unique code called a hash, making it distinguishable from the rest of the blocks. The unique hash code makes it hard for hackers to gain access. A new block is added at the end of the chain every time a new transaction is made as loyalty cards.

A good example of businesses focussed on blockchain loyalty is Boxed. In this case as a customer shops on Boxed, the blockchain stores the purchase transaction information, The data of the transaction leads to the forming of a smart contract that provides points in the backend loyalty system.

Blockchains used in eCommerce are of two types - Public and Private. The public blockchain is widely in use as it is open and lets anyone be a part of it. Hence, eCommerce Loyalty Programs use Public Blockchains because of its transparency & security. Private Blockchains are usually used by companies internally with its access limited to its members. The security of a Public Blockchain is ensured by the Proof Of Work (POW). POW ensures the following.

  • The block is validated before making any change
  • Blockchain is stored on multiple devices as loyalty cards
  • Takes at least 10 mins to add a block in a blockchain

Every machine in the Blockchain network will have a copy of the Blockchain. Even though it is easy to read certain information from the blocks, it is near impossible to alter the data on a blockchain.

“To change a block, you’d need a supercomputer and at least 50% majority of the blockchain network.”

Some of the significant advantages of blockchains include the following.

  • Transparency
  • Trace-ability
  • Immutability
  • Decentralization
  • Security
  • Blockchain in Loyalty Programs

Once you know how a blockchain works and its benefits, it’s not hard to imagine how it can be used to create the perfect Loyalty Program for your eCommerce store. The advantages of blockchain technology, when incorporated into a Customer Loyalty Program, can be a game-changer. Having a blockchain-based loyalty program means that it’ll be transparent, secure, and traceable. A customer loyalty program with these advantages is bound to make your customers happy. Opt for these and branded loyalty programs. 

  • A new customer makes his/her first purchase on your eCommerce store. As part of your Customer Loyalty Program, your customer gains reward points for his/her purchase. Imagine the customer makes even more purchases as time goes by and keeps culminating reward points. At some point in time, the customer decides to use his/her reward points. Two things can happen at this stage.
  • The customer can’t access his/her reward points (Conventional Loyalty Program)
  • The customer is successfully able to access his/her reward points (Blockchain-based Loyalty Program)

Scenario 1
In this case, the customer is unable to access his/her reward points. One of the most common reasons for this is that the reward points expired or got lost during the long period of inactivity of the points. In this case, the customer has no means of showing that he/she had culminated a specific amount of reward points. This can only lead to an unsatisfied customer by the end of the day; you may have even lost a valuable & loyal customer.

Scenario 2
In this case, the customer is able to access his/her reward points; regardless of the period, the account/reward points remain idle. It could be a month, a year, or even more, one of the advantages of the blockchain-based loyalty program is that they never expire. The data in Blockchain remains unaffected, and the transparent nature of it helps the customer in case of any confusion. This also allows the customer to culminate reward points over a long period, which can improve the user experience.

Advantages of Blockchain in eCommerce Loyalty Program

The major advantages of a Blockchain-based Loyalty Program involve seven points.

No Expiration Date
The most important advantage of using blockchains for your loyalty program is that it never expires. The most common problem with any customer loyalty program in eCommerce is that the reward points are often untouched by the customer for a long time. When finally, they decide to use the reward points; they find that it has expired. Using Blockchain eliminates this problem as all the data remains intact and accessible at any time.

Transparency
One of the best things about Blockchain is that they are transparent; the customers know that the company can’t take away or change the rules of the loyalty points/tokens according to their will. This gives the customer assurance and satisfaction that they can redeem their loyalty points whenever they want.

Reduced Costs
Blockchain keeps track of all the transactions made by the customer, and because of the Blockchain’s native ledger, you already have a loyalty ledger. This means you don’t need to spend a massive amount of money to implement and maintain the program.

Flexibility
Blockchain-based loyalty programs are flexible as they let your customers redeem the loyalty points in smaller increments. Customers often complain about the loyalty programs having complex point accrual systems and limited rewards and blockchains provide greater flexibility which lets the customer use his/her loyalty points freely

Security
Blockchain uses a decentralized system, which means data corruption is almost impossible. The data entries in blockchains are time-stamped and irreversible, which prevents transaction manipulation or any fraud.

Omnichannel Access
The flexibility of Blockchain allows the rewards to be made in real-time, which eliminates the waiting time associated with most programs that are points-based. This means the customer can access his/her points whenever a transaction is made, using a smartphone (or any other channel: in-store, online, mobile, etc.)

Customer Lifetime Value (CLV):
Customer Lifetime Value or CLV is one of the core KPI’s for any business including eCommerce, it shows the total value of a customer to the company over his or her lifetime. A Loyalty Program whose loyalty points never expire urges the customer to shop from the same seller again and again which leads to a higher CLV. The higher CLV leads to higher financial growth (revenue & profit) as well as a higher chance for long-term business success.

Companies That Are Adopting Blockchain

As time goes by, more and more companies, B2B companies are investing in Blockchain. Although not all of them are investing in loyalty programs, it is evident that the application of Blockchain goes well beyond cryptocurrencies, digital money or digital currency. Some of the largest public companies in the world are already dabbling in Blockchain technology.

To understand the versatility and dependability of the Blockchain system, let's take a look at the list of reputable companies & brands that are adopting the tech. Forbes published an article showcasing - The 50 Largest Public Companies Exploring Blockchain.

The list includes big-time companies like American Express, Facebook, IBM, and more. Out of these companies like American Express and Singapore Airlines have already implemented loyalty programs based on Blockchain.

How Important is it to Invest in a Blockchain Based Loyalty Program?

“As the brands amp up their competition to grab ever diminishing consumer attention, the race to win customer loyalty is going to be tougher and tougher.”

A Blockchain-based Loyalty Program could be the solution to this problem. With the tight competition in the eCommerce industry, it is quintessential that your eCommerce store stands out from the rest.

To make your website stand out from the rest you need to bring something new to the table. And you need to make sure that whatever you are bringing to the table is relevant and promising. The fact that content-rich platform and giant companies like Facebook, American Express, etc. are investing in Blockchain shows its future potential. Yet, Blockchain technology for loyalty programs is still somewhat in its infancy. This makes Blockchain-based technology a prime contender when it comes to earning your customer's loyalty. Jim Gregg, Head of Operations at Virtina confirms on the pertinence of Blockchain as the future of e-commerce loyalty programs. Elliot Levy, Head of Delivery also emphasizes on Blockchain and its pertinence to eCommerce loyalty programs based on industry insights and customized plans.

Virtina can help you to increase your revenue, improve profit and enhance customer experience.

Talk to Us (888) 478-4799
  • facebook Share
  • twitter Tweet
  • linkedin Recommend
  • pinterest Pin

Recent Blogs

  • Six Mindful Ways to Reduce E-waste This World Environment Day
  • WordPress 6.0 Arturo: Leafing Through the Improved and Advanced Features
  • WooCommerce Security: Tips to Keep Your Online Store Safe in 2022
  • An Absolute Guide to Selling Jewelry Online in 2022
  • Top 20 BigCommerce Apps to Increase Your eCommerce Sales in 2022
Read More

Most Popular Blogs

  • Digital Transformation – Catalyzing Innovation in eCommerce
  • Voice Search: The Future of eCommerce
  • Why Omnichannel E-commerce Marketing?
  • How eCommerce is Reacting to Coronavirus / COVID-19?
  • Ecommerce SEO Checklist – How to Get More Organic Traffic To Your Store in 2019
Read More

Is Your eCommerce Store Ready for the Google Core Web Vitals Update?

Unoptimized websites will lose 70% traffic. Don't let this update KILL your eCommerce business!

Talk to Experts

Any questions?

What is 7+7?

Related Blogs

  • September 30, 2020

    Top 10 Gamification Elements in eCommerce

    Ever felt bored and indifferent about the various things happening on an eCommerce website? An immediate disconnect dawns on you when sites fail to cr ...

    Read More
  • September 18, 2020

    M3: Mobile, Marketplace, and Millennials Revolutionize the Way You Do Business

    Smart brands have always aimed to reach their target audience where they are. Decades ago, a retail store may have moved from the main street to the s ...

    Read More
  • September 04, 2020

    Social Commerce and How It’s Set to Change the Course of eCommerce

    eCommerce is one of the industries that constantly changes and evolves to accommodate customer’s changing requirements. Unlike the other sectors, eC ...

    Read More
  • August 28, 2020

    eCommerce Inbound Marketing Suite Setup

    eCommerce is possibly the easiest way to set up a business. However, making it successful is no walk in the park. Thanks to its flexibility, eCommerce ...

    Read More

Related Platforms

  • WordPress
    WordPress
  • WooCommerce
    WooCommerce
  • Magento
    Magento
  • BigCommerce
    BigCommerce
  • Shopify
    Shopify
  • Wix
    Wix
  • Odoo
    Odoo
  • Volusion
    Volusion
  • PrestaShop
    PrestaShop
  • Vtex
    Vtex
  • OpenCart
    OpenCart
  • Shift4Shop
    Shift4Shop

Our Locations

  • New York
  • Washington D.C.
  • Philadelphia
  • Chicago
  • Houston
  • San Diego
  • Los Angeles
  • Boston
  • Indianapolis
  • Phoenix

Recent Case Studies

  • June 09, 2022

    Custom BigCommerce Middleware Development for an Australian BNPL Company

    Summary – BigCommerce Middleware Customization Virtina recently triumphantly executed a project for a client based in Australia and New Zealand. The ...

    Read More
  • June 04, 2021

    Split-order, Split-shipment, and State-wise Sales Tax Issues Resolved for a WooCommerce Company

    Summary Virtina won a prestigious project from a rental theme kit delivery company in Colorado, United States. The company creates playful experiences ...

    Read More
  • January 08, 2021

    Building a WooCommerce Store for the World’s Largest Government-run Retail Chain

    Summary A governmental organization approached Virtina to build a website that enabled the organization members to buy products like automobiles and h ...

    Read More
  • September 07, 2020

    Custom Volusion Middleware Development for a Banking Software Company in Virginia

    SummaryTreasury Software is a company that develops banking software and is a Microsoft Gold Certified Partner. The company develops banking software ...

    Read More
Let's Connect

You are scheduling a meeting with

Give us a call or email anytime, we endeavour to answer all enquiries as quick as possible.

What is 1+4?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

virtina icon
(888) 478-4799 hello@virtina.com
(514) 613-5073 hello@virtina.com
+61282942073 hello@virtina.com

eCommerce tips sign up

We'll never share your email

WHAT WE OFFER

WooCommerce

  • WooCommerce Development
  • Certified WooCommerce Experts
  • WooCommerce Migration
  • WooCommerce Customization
  • WooCommerce Plugin Development
  • Custom WooCommerce Themes

BigCommerce

  • BigCommerce Development Services
  • BigCommerce Website Design
  • BigCommerce Theme Development
  • Migrate to BigCommerce
  • Bigcommerce Customization Services
  • BigCommerce Plugin Development

Magento

  • Magento Web Development
  • Magento Expert Developers
  • Magento 2 Migration
  • Magento eCommerce Store
  • Custom Magento Development
  • Magento Extension Development

Shopify

  • Shopify Development Experts
  • Shopify Integration
  • Shopify Store Migration
  • Shopify Theme Development
  • Shopify Theme Customization
  • Certified Shopify Developer

Top eCommerce Articles

  • Platform Migration in eCommerce
  • Top eCommerce Platforms
  • eCommerce Failure Reasons
  • Multi-vendor WooCommerce Plugins
  • WooCommerce Subscriptions Migration
  • Core Web Vitals in eCommerce

Odoo

  • Odoo Development

Volusion

  • Volusion Experts

3dCart

  • 3dCart Websites
  • Twitter
  • Facebook
  • Instagram
  • Pinterest
  • Linked In
  • Privacy Policy
  • Website Terms
  • Terms & Conditions
  • Sitemap
Copyright © 2009 - 2022 Virtina. All rights reserved.
  • About Us
  • Solutions
    • By Platform

      • WordPress
      • WooCommerce
      • Magento
      • BigCommerce
      • Shopify
      • Wix
      • Odoo
      • Volusion
      • PrestaShop
      • Vtex
      • OpenCart
      • 3dCart
    • By Industry

      • Manufacturing / B2B
      • Retail
      • Food & Beverages
      • Fashion & Apparel
      • Jewelry
      • Electrical & Electronics
      • Medical & Healthcare
      • Automotive
      • CBD
    • By Service

      • Strategy
      • Roadmap
      • Prototyping
      • Platform Selection
      • Design
      • Development
      • Replatform
      • Integration
      • Core Web Vitals
      • Page Speed Optimization
      • Performance Optimization
      • CRO
      • SEO
      • Data Backup
      • Support
  • Portfolio
  • Resources
      • Blog
      • eCommerce News
      • eCommerce Tips
      • Project News
      • Case Studies
      • Success Stories
      • Events
      • Extensions
      • Partners
      • Affiliate Program
      • Videos
      • Tools
        • Cost Calculator
        • ROI Calculator
        • CRO ROI Calculator
      • FAQ
  • Clients
      • Agencies
      • Direct Clients
      • SaaS
  • Hire Us
    • Development

      • Hire WooCommerce Developer
      • Hire Magento Developer
      • Hire BigCommerce Developer
      • Hire Shopify Developer
    • Migration

      • Migrate to WooCommerce
      • Migrate to Magento
      • Migrate to BigCommerce
      • Migrate to Shopify
  • Contact us
Let's Connect

You are scheduling a meeting with

Give us a call or email anytime, we endeavour to answer all enquiries as quick as possible.

What is 4+4?

Let's Connect

Talk to Jim Gregg, our Head of Operations

What is 6+1?

virtina-logo
CUSTOMIZED PLANS

Start improving your organic search engine rankings and revenues with us! Need an eCommerce SEO strategy that's customized for your unique business and its requirements?

What is 7+4?

Let's Connect

Talk to Elliot Levy, our Head of Delivery

What is 1+4?

Let's Connect

What is 9+2?

Platform Migration

What is 7+7?

Download PDF

What is 7+7?

What is 7+4?

What is 1+4?

GET STARTED WITH STENCIL THEME DEVELOPMENT

What is 6+1?

Let's Connect

What is 7+4?