What the blockchain revolution means for eCommerce retailers
eCommerce is growing in every region across the world, even in Europe again where stagnant, sometimes negative growth in take-home pay and disposable income has reduced what consumers spend online.
Meanwhile, offline retailers, especially those across Europe have struggled to keep growing. Several major brands in the UK and Europe have fallen victim to changing market conditions, either closing completely or significantly downsizing footprint and headcount.
In either case, whether retailers are struggling to grow or growing quickly, loyalty and rewards schemes are fantastic ways to give those revenue and profitability numbers and uptick.
In theory, at least. Loyalty schemes should drive more growth, make it easier to generate revenue from customers, increase referrals and keep encouraging them to spend more.
In practice . . .
Why traditional loyalty schemes don’t generate enough ROI
Traditional loyalty schemes could be more effective. Unfortunately, as many eCommerce brands discover, they’re either difficult to implement, or customers don’t use them as much as they could. Many aren’t tailored for the needs of online retailers, often thrown in as an extra piece of an offline array of services, or eCommerce retailers are entirely overlooked.
Companies can spend a lot of time and money trying to implement a scheme that doesn’t work.
All of these are problems we are solving with GIFTD, an eCommerce loyalty and rewards company that generates an extra 17% extra revenue for online retailers. GIFTD is the company behind BitRewards. With BitRewards, we are taking everything we’ve developed and learned and taking it one giant leap further, thanks to blockchain technology.
How Blockchain will revolutionise loyalty schemes
For consumers juggling an array of loyalty programs, blockchain could provide instant redemption and exchange for multiple loyalty point currencies on a single platform. With only one “wallet” for points, it saves consumers having to hunt for each program’s options, limitations, and redemption rules.
As well as simplifying the rewards process for consumers, blockchain provides effective solutions for merchants through Smart contracts. Smart contracts are executed automatically upon the meeting of a number of conditions and triggers without the need to enforce the execution. Blockchain, therefore, will simplify implementation, administration and support of reward programs, allow to reduce costs and improve transparency and reactiveness. Moreover, new blockchain rewards and loyalty programs will allow simple integration with current programs using smart contracts.
For consumers and eCommerce brands, blockchain is more secure, easier to use, easier to implement, safer, gives consumers more control and makes partnerships and integrations simpler. Brands can cross-promote similar and complementary companies, giving customers more choice while letting them redeem points, offers, promotions and rewards across a network of partners.
Now is the perfect time for online retailers to gain first-mover advantage. Stand out from competitors, give your customers a loyalty scheme they can use more easily than any other.
Retailers: Find out more about BitRewards today.