The loyalty industry has built a complex and intertwined ecosystem of sponsor brands, coalition participants, third party partners. This in turn is supported by a network of reward points calculation, issuance and storage systems and a tangled web of interconnections with increasing complicated customer interfaces trying to present a clear and understandable proposition. Arguably the loyalty programme operators have tied themselves so tightly into these technology knots it is impossible to untangle and so needs to be cut through instead.
The reason for this complexity stems from the core brand need to control the full economic costs of their loyalty rewards in a way that constrains the customer to keep within a defined and controllable network of redemption options and partners.
Breaking through this model, creating the extensibility and scalability needed to become a loyalty success in the fast evolving economic landscape and rapidly shifting customer expectations can’t mean tweaking and building on the ageing principle of economic control and visible reward asset management.
Recognising this and the challenges current loyalty currency management technology faces to evolve at the rate required we are looking at new ways for challenged sectors like banks to run and manage loyalty propositions on an open technology platform like blockchain. Still with required commercial control of rewards value but in a way that empowers the customer to take charge of how they use that reward value including peer-to-peer transfer, and this is potentially as a proof of concept for tomorrow’s core banking proposition to their customers as Bitcoin highlighted and blockchain is promised to deliver.