Yesterday, leading consultancy KPMG revealed the findings of its ‘Tokenization, Loyalty and Blockchain’ survey. The firm asked 1,000 adult Americans and found that tokens have considerable business value when used for customer engagement and commerce.
KPMG’s full report outlines how consumers are becoming more open to the idea of using blockchain-based tokens. Both as loyalty reward points or branded currency. A highlight is that 82% of respondents would use tokens as part of a loyalty program they are already enrolled in. This is good news for businesses as well, since blockchain allows for improved efficiency, tracking, and fraud protection.
Arun Ghosh, KPMG US Blockchain Leader, said: “Tokenization is ushering in the next generation of commerce. It provides inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency of blockchain.”
He continued: “Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams and customer engagement opportunities.”
Indeed, media agency Havas announced yesterday that it is adopting a blockchain customer incentive program. Socios.com and Fantastec run tokenized fan engagement solutions for multiple top football teams. BLOCKv’s nonfungible Vatom tokens are used by Vodafone and Miller Lite to reward consumers.
According to KPMG, the applications don’t stop there. The firm found that customers held high levels of loyalty to banks and credit card companies (87%), restaurants and coffee shops (86%), and electronics brands (81%). The report singles out Samsung’s wallet and decentralized apps as a consumer-focused project with “enormous potential”.
Firms operating in these high loyalty sectors “will find a willing, eager and accepting market” for tokenization. This is especially true for firms catering to 18 to 24-year-olds, 83% of whom are interested in the future of tokens.
What about other sectors? KPMG’s report found, surprisingly, that only 42% think tokens are useful gaming and 38% in e-commerce. These industries are usually seen as leading areas for blockchain-based tokens, such as in-game economies.
However, yesterday’s report revealed the valuable insight that tokenization for consumers has plenty of opportunities for business outside the most active sectors of sports and entertainment.