Accounting firm KPMG recently published a report suggesting that blockchain tokenization helps boost consumer loyalty for businesses. The whitepaper is based on a survey conducted by KPMG, focusing on the use of blockchain loyalty programs to enhance customer experience.
The survey revealed that 83 percent of Americans aged 18-24 were interested in the future of blockchain-based tokens.
According to KPMG, the best way to introduce digital tokens to consumers is to implement them as part of loyalty programs. 82 percent of consumer respondents said they were willing to use tokens that have been integrated with existing loyalty programs, with 81 percent saying they would trust tokens more if they were already active in a company’s loyalty program.
“By using tokenization, companies can develop new forms of value exchange within an existing network, such as allowing consumers to use loyalty points for purchases with different merchants,” said Arun Ghosh, leader of KPMG US blockchain.
Meanwhile, 45 percent of consumers who are familiar with tokens expressed their concerned about fraud. Companies which market their tokens, highlighting security and privacy aspects, are more likely to attract consumers.
Enthusiasm for blockchain tokens outside of loyalty programs has been described as disappointing, with only 42 percent of surveyed Americans believing tokens are useful in gaming and just 38 percent seeing them benefiting in e-commerce.
Given these results, KPMG has posited that loyalty programs offer businesses an entry point to introduce tokens to their consumer bases. Ghosh stated:
“[Tokenization] provides inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency of blockchain. Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams and customer engagement opportunities.”
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