The Use Case

A maor flaw with loyalty programmes is that the data is stored in a number of different silos. As a result, many customers don't receive the rewards which they deserve, which sometimes leads to a lower transaction rate.
A loyalty system underpinned by a blockchain could alleviate these problems. The information in these silos could feed into a blockchain, which would create a simple view of a customer. This view would be in real time therefore it would give the customer a clear view of how much more activity would warrant a bonus. This could increase their usage and provide an incentive to do more business.

How It Could Work

Alan has entered into to a loyalty programme with his bank which could see him earn €250 if he uses his debit card 15 times a week. Having completed this, he fails to receive his money. Upon contacting his bank, the relationship manager realises that his entry form wasn't processed and shares the money.
A blockchain loyalty programme could remove the friction in the above situation. By writing the rules into a smart contract, it would ensure that Alan is paid immediately when he reaches the threshold. It would also provide a clear view of his customer behaviours meaning product could be tailored to fit his needs.

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