Yesterday, Indian software company Tata Consultancy Services (TCS) launched a blockchain-based customer loyalty platform. The solution allows consumers to view, manage, and redeem loyalty points of different brands using a single portal.
Loyalty programs incentivize customer engagement and reward them for their association. Nonfungible tokens (NFTs) are becoming a popular way of doing so. For consumers, it becomes challenging to keep track of the different loyalty programs they have joined. Tata hopes to address both of these with its blockchain platform.
“Customer loyalty programs have proven their ability to bring consumers and brands closer together. The key to unlocking further exponential value is to provide complete control to the consumer on how they like to earn and burn,” said Lakshminarasimhan Srinivasan, Global Head of Blockchain Services at TCS.
TCS said the platform is based on R3’s Corda blockchain and facilitates tokenized value exchange. The company plans to achieve it by consolidating loyalty programs of participating brands.
Srinivasan added: “An open, incentivized ecosystem can make trillions of loyalty points fungible as digital tokens. We are excited to launch this next-gen loyalty platform for orchestrating the tokenized value exchange.”
Indeed, KPMG published a survey highlighting the benefits of tokenization for loyalty programs. It observed that 79% of Americans would be willing to use tokens if they are easy to use. By bringing different loyalty programs on the same platform, TCS is clearing one of the hurdles for adoption.
R3’s CEO, David Rutter, said: “This is a genuinely innovative approach to improve how brands interact with their customers through loyalty programs. Corda was built and designed to deliver precisely these types of process and efficiency improvements to the interactions across multiple organizations, consumers and channels.”
TCS has its own blockchain called Quartz which powers its BaNCS Network. In April, the company completed a cross-border securities settlement transaction between central depositories Maroclear and Kuwait Clearing Company. A few months ago, the firm announced it was working with SAP on a blockchain medical device supply chain initiative.
Meanwhile, Singapore Airlines, Cathay Pacific, and AirAsia are using blockchain for their loyalty programs. Leading media agency Havas is also adopting a blockchain customer incentive program. Socios.com and Fantastec run fan engagement programs for football teams, and BLOCKv’s NFTs are used by Vodafone and Miller Lite. In the UAE, Burj Khalifa owner Emaar recently announced plans to launch a blockchain referral and loyalty platform later this year.