Now to find the problem.
EY India has announced the launch of their blockchain loyalty platform solution which it is now taking global.
The platform allows for interoperability of loyalty points among ecosystem partners, offers transparency and tracks near real time transactions.
“There are loyalty solutions that already exist in the market. What blockchain does is there is a common shared ledger between the whole ecosystem. So, everybody has trust in the transactions that is put in (the ledger),” said Gaurav Handa, director, advisory services at EY India.
“The solution will help resurrect loyalty in the digital age by providing a one stop shop offering for all its stakeholders in an increasingly competitive landscape,” said Ram Sarvepalli, EY India advisory services leader.
EY India have identified that incumbent solutions are not easily interoperable and raise problems during reconciliation. Converting the points from one program to another is often difficult or not possible.
“If blockchain sits as a layer on top of these existing systems, the conversion and interoperability become near real time,” Handa said.
This could be the launch of a game-changing platform, but it feels more like the development of a solution looking for a problem.
Reconciliation isn’t a known issue for most reputable loyalty program operators, and a lack of interoperability is generally not a technical issue, but a commercial one. Loyalty program operators tend to block members from transferring their points value to another program because they prefer to keep the value within their own eco-system. If a member transfers points from one program to the other, the first program must pay for the cost of those points, which is money out the door. In most instances the loyalty program would prefer the points to expire.
Applying a cutting-edge blockchain solution to this issue isn’t going to solve the problem because major loyalty program operators would argue the problem doesn’t exist.
Philip Shelper is a specialist loyalty consultant based in Sydney, Australia who obsesses about everything to do with loyalty and rewards. His company Loyalty & Reward Co are a leading loyalty consulting firm.
Phil is the author of “Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies.”
www.blockchainloyalty.io is a global resource centre for everything blockchain loyalty.
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