“What if we could redeem miles for a cup of Starbucks coffee or movie tickets?”, FPT Software’s Vice President Tran Hoang Giang addressed the online audience in a webinar mid-July in Hanoi.
Customer loyalty programs have been hot on the agenda as enterprises all over the world transform themselves to adapt to the new normal. However, few of them are ready to take action due to concerns about data security and transparency. This is where blockchain comes into play, he said.
“A blockchain-based loyalty platform assures two things. First off, it enables cross-selling. Airline points could be exchanged for coffee or movie tickets and vice versa, without leaking customer data. Secondly, everyone is given access to the same data, and all transactions are made transparent”, Giang added.
“I want to note that transparency is critical because no one wants to share data with others. Customer data is gold. It is diamond”.
Blockchain can be harnessed to optimize customer experience
Data, according to Giang, could be leveraged to enhance customer experiences. “For instance, airline companies would better understand what a passenger wants in a flight. What are their favorite movies? What do they drink? What do they eat? Thus, they could tailor their products and services accordingly”.
Not only retail merchants but financial institutions are also in need of a revamp for loyalty programs. Giang suggested banks leverage blockchain in credit scoring to tap into the underbanked population.
“A loyalty point system provided by akaChain can create a network in which users can exchange information such as how borrowers spent money and what kind of products they used”, thereby banks could design the credit scoring system accordingly.
As a result, people without a bank account or bank transaction record can still apply for loans or get credit cards, and banks’ non-performing loan rate will be reduced significantly, Giang pointed out.
With blockchain, all transactions are tracked in real-time, thus saving us lots of time and effort. “I do hope that blockchain will bring about a real-time world, not just data but every action will be real-time. Providing the best customer experience – that is the power of blockchain”.
Hosted by FPT Software, the webinar aimed to help enterprises optimize their loyalty programs with the use of blockchain. Besides Tran Hoang Giang from FPT Software, other speakers from CEM Partner and One Mount Group shared their perspectives on sharpening competitive edge by enhancing customer experience in the COVID-19 recovery phase.