Marketing 3 min read

New Survey Says Tokenization can Boost Consumer Engagement

Image courtesy of Shutterstock

Image courtesy of Shutterstock

In a recent whitepaper, KPMG explored how the use of a blockchain loyalty program can improve the experience of customers. According to the professional service firm, the best way to introduce tokenization to customers is to integrate blockchain into existing loyalty programs.

In the company’s survey, 82 percent of the participants said they are willing to use tokens as part of the membership of an existing program. Similarly, 81 percent of the consumers said that they would trust the use of tokens more readily if they are already a loyalty program participant.

According to Investopedia, tokens are unique kinds of virtual currency that reside on their blockchains and represent an asset or utility.

While still at an early adoption stage, tokenization is already changing commerce. Now, we have new ways to not only drive consumers’ behavior but build trust and loyalty too.

In a statement KPMG U.S. Blockchain Leader, Arun Ghosh said:

“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.”

So, what the other takeaways from the survey?

How Companies Can Use Tokenization To Boost Customer Engagement

As A Tool For Maintaining Consumer Loyalty

According to the survey, 78 percent of Americans are willing to use tokens from companies that they already buy from.

That means businesses can use this technology as a tool for increasing consumers’ loyalty. However, respondents from the survey had two significant concerns: security and ease of use.

Focus on the Token’s Security and Privacy Aspect

The report revealed that 45 percent of the consumers that are not familiar with tokens were concerned about fraud. This suggests that companies that focus on the token’s security and privacy aspects during their marketing are more likely to attract more consumers.

Also, companies can address their customers’ security and privacy concerns by providing a better understanding of tokenization.

Ease of Use is Essential

The KPMG survey noted that 79 percent of the Americans would gladly accept tokens as rewards if they are easy to use.

With that said, companies don’t have to be limit the use of tokens to rewards. Roughly 42 percent of the consumers believe tokens are useful in gaming. Meanwhile, another 38 percent think it has a place in eCommerce.

Gen Z Are the Most Accepting of Tokenization

According to the survey, the most willing age demographics to use this technology is the generation Z.

The survey revealed that 83 percent of Americans between ages 18 and 24 expressed interest in the future of tokens. Surprisingly, more than half of older Americans – ages 65 and up – expressed a similar interest.

“Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams, and customer engagement opportunities,” says Ghosh.

Read More: Small Businesses Are Not Focused On Keeping Customers Says Survey

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