Loyalty Points on the Blockchain

Business and Management Studies 4(3), 80-92.

16 Pages Posted: 29 Sep 2018 Last revised: 9 Sep 2019

See all articles by Dhwani Agrawal

Dhwani Agrawal

York University, Schulich School of Business, Students

Natalia Natalia

York University, Schulich School of Business, Students

Gajane Gopalakrishnan

York University, Schulich School of Business, Students

Margaret Natalie Guzman

York University, Schulich School of Business, Students

Michael D. McDonald

York University, Schulich School of Business, Students

Henry M. Kim

York University - Schulich School of Business

Date Written: September 8, 2018

Abstract

Although some organizations are contemplating the potential impact of blockchain technology in today’s economy, blockchain, itself, is quickly emerging to be a disruptive force. This is especially true in the circumstance of loyalty programs.

Blockchain is a public, digital, and distributed database solution providing decentralized management of transactional data. This technology is transforming society in ways that were previously unimaginable. Whether it be the way individuals use their phones, cars, or the healthcare system, blockchain is applicable for a variety of economic sectors and transactions. Although many may argue that blockchain is in its early development stage, it still possesses the power to revolutionize industries and consumer habits at a global scale. Through implementation of blockchain for loyalty networks, companies eliminate the limitations and inefficiencies while elevating the customer experience with secure and immediate redemption options from a variety of vendors. Despite evolving rapidly, its implementations provide better security, privacy, performance, usability, data integrity, and scalability, to name a few. Hence, blockchain is likely to entice any individual for instantaneous incentives for every purchase.

This paper aims to analyze the current, traditional loyalty programs and the challenges associated with them. It highlights how blockchain can resolve these challenges and provide a better experience. This report further explores the various types of loyalty programs that currently exist in the blockchain ecosystem and provides potential future implementations. Finally, the paper analyzes the implementation of coupons in comparison with loyalty points programs, highlighting the vast spread of blockchain implementation.

Keywords: loyalty program, blockchain, technology, decentralized database

Suggested Citation

Agrawal, Dhwani and Natalia, Natalia and Gopalakrishnan, Gajane and Guzman, Margaret Natalie and McDonald, Michael and Kim, Henry M., Loyalty Points on the Blockchain (September 8, 2018). Business and Management Studies 4(3), 80-92., Available at SSRN: https://ssrn.com/abstract=3246395 or http://dx.doi.org/10.2139/ssrn.3246395

Dhwani Agrawal

York University, Schulich School of Business, Students ( email )

North York, Ontario
Canada

Natalia Natalia

York University, Schulich School of Business, Students ( email )

North York, Ontario
Canada

Gajane Gopalakrishnan

York University, Schulich School of Business, Students ( email )

North York, Ontario
Canada

Margaret Natalie Guzman

York University, Schulich School of Business, Students ( email )

North York, Ontario
Canada

Michael McDonald

York University, Schulich School of Business, Students ( email )

North York, Ontario
Canada

Henry M. Kim (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
802
Abstract Views
2,800
rank
38,254
PlumX Metrics