StablecoinissuerCircleannouncedonTuesdaythatithadsignedaMemorandumofUnderstanding(MOU)withHKT,amajorplayerintechnology,media,andtelecommunications.
Themainobjectiveofthiscollaborationistoexploreopportunitiesforcreatingblockchain-basedloyaltysolutionstailoredtoHongKong’smerchantlandscape.
Circle-HKTCollaboration
Accordingtotheblogpost,Circle’sexpertiseinWeb3services,combinedwithHKT’smerchantnetworkandcustomerengagementresources,willallowthetwocompaniestodevelopWeb3-poweredloyaltysolutionstoimproveconsumerinteractionswithmerchants,potentiallycreatingmoreinteractiveengagementexperiences.
Inanofficialstatement,JeremyAllaire,co-founderandCEOofCircle,said:
“WeareexcitedtocollaboratewithHKTtobringourWeb3Servicestotheforefrontofcustomerloyaltyinnovation.Thiscollaborationisatestamenttoourcommitmenttohelpingbusinessesunlockthepotentialofblockchaintechnologytocreatevalue-drivencustomerexperiences,redefiningloyaltyprograms,andprovidingmerchantswiththetoolstheyneedtothriveinthedigitaleconomy.”
Well-knowncompanieslikeAmericanExpressandMarriotthaveseennotableengagementandrevenuepercustomer,partlyduetothestrengthoftheirloyaltyofferings.ThesetypesofprogramshavealsobecomepopularwithGenZsandmillennialsinHongKong.However,consumerexpectationsaroundthemhaveshiftedovertime.
CirclecitedaStatistareportstatingthatthegloballoyaltymarketisvaluedatapproximately$5.57billion,with70%ofconsumersindicatingthatloyaltyprogramsplayasignificantroleintheirpurchasedecisions.
Recognizingtheadvantagesofon-chainloyaltyprogramsovertraditionalmethods,thecryptofirmlaunchedits“SmartContractPlatform”inMarchthisyeartocreateintegratedon-chainloyaltyoptionswithinapplications,makingrewardearningandredemptionasmoothprocessforusers.
BlockchainBenefitsinLoyalty
ArecentDeloittereporthighlightedthattraditionalloyaltyandrewardsprogramsarefailingtoachievetheirfullpotentialduetoseveralkeychallenges.Theseincludeaccountinactivityandlowredemptionrates,whichhinderprogrameffectivenessandcustomerengagement.
Additionally,timedelaysinprocessingrewardsandhightransactioncostscontributetoinefficiencies,furtherexacerbatingissuesrelatedtosystemmanagementandcustomeracquisition.Thereportalsopointstolowclientretentionasacriticalconcern,suggestingthattheseprogramsstruggletomaintainongoingcustomerloyaltyandengagement.
Thecompanybelievesthatblockchaincouldeliminatemanyinefficiencies.
“Soweknowwhatisbehindthislackofexecutionefficiency–fragmentedandclunkysystemsthatdependoncentralizedadministrationrequiringthecoordinationofmultiplepartiesthroughtrustedintermediariestomoveprocessesalongthevaluechain.Ironically,blockchainanswersthisproblembytakingtrustoutoftheprocessanddecentralizingit.”
cryptopotato.com