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American Express has deployed Hyperlinkger's blockchain technology to make its Membership Rewards program more versatile, marking the first application of blockchain technology to a major US loyalty program.
As part of the revised program, merchants will be able to create Membership Rewards offers on their own platforms to attract customers while offering card members more opportunities to earn points.
Awards on selected products
American Express associates with Boxed, a wholesale online products retailer, as part of a pilot promotion for members enrolled in Membership Rewards. Members can earn 5 Membership Rewards points for certain products and brands.
American Express will initially provide reward points to Boxed customers for Cheerios cereals, Planter nuts, Dove soap and a few other items, according to the Associated Press. American Express plans to make the program available to almost all trading partners in the coming months.
Technology has helped to target individual items, which has proven difficult in the past, as merchant inventory systems differ from each other. Hyperlinkger blockchain technology has helped American Express solve the problem so merchants and American Express can create product-focused offers.
Promotions more versatile
Chris Cracchiolo, who oversees Membership Rewards at American Express, said merchants can develop programs based on the time of day and the day of the week by encouraging the customer to download the merchant application. ]
While customers could be targeted for an offer based on the spending behavior of a particular merchant as part of the Amex Offers program in the past, these offers could not target specific products.
Since American Express owns and manages blockchain technology, merchants must spend a minimum of time participating in the program. American Express can run traders' offers in a matter of weeks rather than in a few months.
Read also: American Express wants to "take full advantage of blockchain", joins the project Hyperledger open-source
How does it work
A private chain on the block chain of the company will allow merchants to send and receive information safely. The merchant will have control over the offers he / she wants to market, and he / she can create personalized Membership Rewards offers and designate SKU level bonuses.
American Express will have full visibility of blockchain bids and will ensure that promotions comply with brand values and trade agreements.
Once the offers are available to customers, the smart contract will automatically send the anonymized transaction to American Express on the private blockchain. American Express will identify the card member and award them reward points.
American Express will work with merchants to create smart contracts for deals.
The credit card giant is a premier Hyperledger member, with Deutsche Bank, JPMorgan, IBM, Intel, Baidu and Accenture.
Marc Gordon, chief information officer and vice president of American Express, said the company wanted to take full advantage of blockchain to provide innovative products to customers and partners when it has joined Hyperledger.
Image of the house by American Express
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