There has been much discussion about the rise of cryptocurrency and the potential of blockchain when it comes to increasing transparency in the digital advertising ecosystem given its open ledger format. But perhaps less talked about is the way these new technologies could impact the future of loyalty and CRM.
Startup Trippki is collaborating with nine hotel groups across South America, Europe, Africa and Asia on a blockchain-powered loyalty system that rewards guests in cryptocurrency.
During their stay, guests will be able to collect Trip Token rewards, which are sent to their personal cryptocurrency wallet app on their phone. Alternatively, users can cash out on a secondary exchange and trade Trip Tokens for cryptocurrencies such as Ethereum or Bitcoin.
Trippki founder and CEO Edward Cunningham believes blockchain technology will transform the smart rewards market. “With this system each hotel would set their own business rules, so for example they could say you get X amount of Trip Tokens on your first night’s stay or if you stay three nights or more, or write a review and share it on social media.”
The smart contract means that guests will be eligible to write a review only if they have stayed at the hotel because the ledger registers your visit, guaranteeing reviews come from a source with experience on the ground.
Blockchain streamlines transactions between parties by facilitating trust, increasing transparency and removing unnecessary intermediaries.
Darius Eghdami, FansUnite
Trippki plans to hold its ICO in June and is already promoting the sale on Telegram messaging app. Whereas in 2016 there were only a few ICOs taking place, by early 2018 that number has rocketed to hundreds a month, says Cunningham. He has seen the cost to advertise on cryptocurrency exchanges like Coin Market Cap rocket from hundreds to thousands of pounds.
“Two years ago, there were virtually no conferences on [cryptocurrency and blockchain], now it seems like there’s one every day. It’s a bit like the Gold Rush days; you have people rushing to…