How blockchain technology is changing the way we track & reward drivers.
Ever got into the good driver, bad driver debate? What if that could be verifiably tracked? Better still, what if you could be rewarded for being a good driver?
Redeemable reward programs could include sticking to decent driving speeds, keeping your vehicle in good shape, and switching to ECO mode.
It’s remarkable how popular loyalty programs have become, especially considering how much they leave to be desired on both the consumer and business sides. Customers nowadays don’t just expect more value and better service, they also tend to seek more engaging and fulfilling experiences. Intense competition means that keeping customers loyal is increasingly vital for any company.
Automotive companies are very much at each other’s throats in this respect, with many offering programs which don’t just aim to maintain engagement with car owners and retailers, but also aim to ensure that they shine past competition.
No wonder then, that consumer interest in reward programs is showing no signs of slowing down. A recent study by Accenture showed that 77% of consumers are participating in at least one loyalty program. More than $300 billion is distributed in reward points every year.
In spite of this, not only do businesses see these points go unused, they often find that these programs don’t actually drive loyalty. And a lot of that has got to do with how complicated, complex, and cumbersome these programs are. The advent of DLT is set to turn reward programs inside out.
Even though Phil has signed up for a reward program with his carmaker, he doesn’t know his loyalty points balance. He is aware he can avail discounts at local and international merchants but redeeming these loyalty points is an irritating affair, as they’re not universally accepted.
Keeping his vehicle in shape, switching to ECO mode and sticking to decent driving speeds are all things Phil takes seriously, but he’s not rewarded for them. After all, keeping track of all of this is easier said than done — even in today’s highly connected world.
All this will soon change, however, as the auto industry begins to embrace DLT. Manufacturers will be able to verifiably track how drivers use their cars and reward them for a range of practices, such as:
- Sticking to Speed Limits
- Making use of the ECO mode option
- Keeping tyre pressure in check
- Car Pooling
All this information being tracked and recorded, blockchain may even have the potential to end the good driver, bad driver debate.
Distributed ledgers are helping companies break the mould of one-size-fits-all plans, offering a whole new breed of tailor made programs. They’ll be able to create simpler systems that offer easier ways to redeem more accurate rewards. A simplified structure that can deliver real value to both customers and companies.
The issue of not having enough partners that accept specific loyalty points may also be a problem of the past, as digital tokens could allow users to convert their reward points and use them at any retailer.