Blockchain Technology In Loyalty Program Applications

Abstract

Loyalty programs provide income to the user as a result of their expenditures. It helps businesses if the customer ensures continuity. A loyalty program is based on the bilateral relationship between the customer and the business. It is important to be sure of the reliability of this bilateral relationship and to be able to follow it. Today, many companies are trying to incorporate Blockchain technology into their systems because they pay attention to reliability and transparency. In this study, a loyalty ecosystem based on Blockchain technology, which will include member businesses, change the shopping and reward experience, and encourage employees is explained. We propose an application named Decentralized Loyalty Token (DLOT) to be used by entities where the community is together and the spending potential is high such as restaurants, cafes, and e-commerce platforms that want to be included in this structure. Users will earn rewards while spending DLOT Tokens and can store and accumulate the rewards indefinitely or use them for any payment. In addition, users will be able to convert the loyalty Tokens into a digital value in other businesses included in Wallet. The details of the proposed Blockchain-based loyalty system are explained along with benefits to customers and entities. © 2022 ACM.