How To Build Customer Loyalty Through Blockchain Technology?

how to build customer loyalty

Business owners use different tactics and techniques to retain their existing customers and make new customers. They apply various marketing strategies to build loyalty with customers to retain them and convert prospects into customers. Entreprises organize different customer loyalty programs such as freebies, discounts, coupons, VIP passes, rewards, etc. to build loyalty with customers, but due to the gap in the implementation of the scheme their customers do not get the benefits of loyalty programs. Traditional methods have failed in bridging these gaps due to their limitations. Blockchain technology helps enterprises in many ways to build customer loyalty with customers in many ways.

In this article, we will discuss how to build customer loyalty through blockchain technology.

What is Blockchain Technology?

It is a distributed immutable digital ledger that records transactions and tracks the assets in a peer-to-peer network. It is formed from a network of computers when they come to a consensus to create a new block, which is connected with a decentralized ledger to create a chain of blocks. In blockchain technology, the data is stored in a number of computers or nodes, instead of a centralized computer server, which makes it secure, hack-proof, and immutable. Its formidable security feature, automation capability, and transparency have compelled the industry experts to explore its potential in bringing efficiency to the business. Blockchain came into the limelight with the launch of the popular cryptocurrency Bitcoin in 2009.

Here’s how to build customer loyalty through blockchain technology:

Stay Connected with Customers

For a brand to become trusted and reliable, it needs to establish robust communication with its customers. Customers should be heard and their queries must be resolved to make them loyal customers of your brand. Presently, retailers and outlet representatives act as touchpoints for the customer, who have their own shortcomings, leaving the customers dissatisfied with their response.

Business intelligence software based on blockchain technology establishes seamless communication between customers and the firms. To allow the customer to engage with the brand, they can use an NFT-based QR code on their product’s packaging, which can be scanned by a customer to send comments and suggestions directly to the manufacturer. This two-way communication helps the firms stay connected with customers and build their loyalty.

Start a Customer Loyalty Program

Customer loyalty is built by organizing various customer loyalty programs. Discount coupons, freebies, VIP passes, refer-a-friend offers, rewards, etc are the popular loyalty programs offered by the enterprises to retain their existing customers and make new ones. But the problem arises when these loyalty programs are not transferred to the end customers by the middlemen and intermediaries such as wholesalers, distributors, or retailers. Blockchain solves this problem with NFT-enabled QR codes. These codes, containing reward information, are affixed to product labels, which can directly be scanned by customers through a mobile scanner to avail the benefit. This removes the dependence of businesses on middlemen to transfer the loyalty program and helps in gaining customers’ faith.

Improving Authenticity and Credibility

The manufacturers face a trust deficit due to the circulation of counterfeit products in the market. This fades away the customers’ trust and leads to a decline in sales significantly. The traditional technology has been insufficient in putting a check on the influx of hoax products. However, the blockchain has the potential to restore your brand’s credibility by eliminating fake products.

Blockchi is a blockchain-as-a-service platform that facilitates end-to-end tracking and tracing of goods from manufacturer to distributor to customer. The customer loyalty program by Blokchi helps businesses keep track of the movement of each and every unit of the product across the supply chain through its NFT-enabled QR coding. The unique QR serializing of the product label helps in detecting the counterfeiting products at a different stage of the supply cycle. It restores the customer trust in the brand and increases sales multifold.

Resolve Security Concerns

Most of the customers do not intend to participate in the customer loyalty programs due to security concerns as they fear sharing their personal details to get the benefits. Their concern is genuine because according to Forester’s research, frauds related to loyalty programs have increased by 89% in 2019. This has resulted in financial loss to brands and their customers.

Nevertheless, the blockchain has evolved as alternate hack-proof technology used by manufacturers to organize loyalty programs. Blockchi is one of the platforms that enables the enterprises to allow the customer directly to participate in the loyalty program and get rewarded without any possibility of a security breach. Under this mechanism, manufacturers need to tag their product labels with an inimitable QR code containing all information about the rewards, which customers can avail by scanning through their smartphone scanner.


As you have learned about how to build customer loyalty through blockchain technology, you may explore more about blockchain technology before taking an intelligent business decision. The blockchain is transforming the way business is done, and you cannot afford to wait any longer before your competitors get an edge over you.

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