Loyalty programs are a great way to get people to keep coming back to your company. The more you encourage this behaviour, the stronger their link with your organization will become. However, these programs face a few potential challenges. For example, they tend to have a low redemption rate. This can be an indication that people don’t enjoy engaging with your program or a sign that you don’t have any rewards that interest them or know when to approach them with the right message at the right time. 

Thankfully, a new generation of loyalty and reward solution providers are starting to use  AI and blockchain technology to help disrupt the loyalty market, creating programs that customers love. Let’s look at how these approaches like Momentum Protocol are creating the future of this industry. 

Making Transactions In Real-Time

One of the biggest benefits that Blockchain can provide is its superior speed. This means that merchants will be able to award customers their credits in real-time. By ensuring that users don’t have to wait for days or weeks to see their points get updated, merchants will be able to increase engagement. 

Link With Other Businesses

In addition, merchants might be able to use this technology to create a new way of delivering points. For example, the blockchain will allow points to go into a customer’s centralized alliance wallet. This makes it easier than ever for anyone to link businesses onto the same rewards program. By doing this, merchants will be able to increase the likelihood of having other businesses refer customers to them. In addition, customers will appreciate new ways of earning points. 


Online users are increasingly focused on how secure services are. If a merchant gets hacked, and customer information gets stolen, produces a lot of bad publicity, and makes people re-consider joining a merchants program. Thankfully, blockchain is one of the most secure technologies available, allowing people to trust loyalty programs. 

Know Which Rewards To Offer

One of the keys to having a loyalty program is offering rewards that people will want to redeem. If they don’t care about redemption options, they won’t engage with the program. Merchants will be able to solve this problem by using AI. AI is able to work with large amounts of data, to find what your customers want. Once known, merchants will be able to tailor the system to suit their customers individually. Merchants will also be able to use this to increase sales. For example, Merchants can predict which products to recommend when they visit their website or what message to send them via email. 


Loyalty programs are a great way of convincing people to shop with brands. A lot of people are saying they would recommend a business with a good loyalty program. To help merchants to get the maximum benefits, they might want to consider utilizing new technologies, like AI and Blockchain. As mentioned, this can produce multiple benefits, such as increasing the engagement with the program and creating a more secure environment.