Blockchain and Brand Loyalty Programs: A Short Review of Applications and Challenges

Abstract

Blockchain is gaining ground on academic research and business applications as it is believed to have the potential to change business models in numerous sectors of the economy. Blockchain applications characteristics (security, immutability of record keeping, efficiency, and disintermediation) provide solutions to a number of issues firms and organizations face. Until now, most of the research until now deals with its financial applications and cryptocurrencies. There is however, an important field for developing blockchain application in marketing and most specifically in brand loyalty programs. In this paper, we are going to review some of the applications of blockchain in marketing and marketing management, and the ways it could enhance brand loyalty and brand loyalty programs run by firms and brands. The main findings of our paper is that blockchain could help brand loyalty by building trust between the brand and consumers, by simplifying and reducing the cost of administering brand loyalty programs, and by providing more ways for consumers to derive benefits from these programs through tokenization or cryptocurrencies. Finally, we are proposing issues that should be considered for further research on the topic. Keywords: Blockchain; Marketing; Brand; Loyalty Programs.