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A loyalty program based on Waves blockchain and mobile phone interactions

Part of: Distributed Ledger Technologies: Papers Arising from Three Australian Symposia

Published online by Cambridge University Press:  30 March 2020

Luis J. Dominguez Perez Open the ORCID record for Luis J. Dominguez Perez [Opens in a new window] ,
Luis Ibarra ,
García-Fernández Alejandro ,
Agustín Rumayor  and
Carlos Lara-Alvarez Open the ORCID record for Carlos Lara-Alvarez [Opens in a new window]
Luis J. Dominguez Perez
Affiliation:
ITESO, Universidad Jesuita de Guadalajara, Periferico Sur Manuel Gomez Morin 8585, C.P. 45604, Tlaquepaque, Jalisco, Mexico; e-mail: luisjdominguezp@iteso.mx
Luis Ibarra
Affiliation:
Mathematics Research Center (CIMAT), Parque Tecnologico Quantum, C.P. 98160, Zacatecas, Mexico; e-mails: antonio.ibarra.g46@gmail.com, agarciafdz@gmail.com, agustin.rumayor@gmail.com
García-Fernández Alejandro
Affiliation:
Mathematics Research Center (CIMAT), Parque Tecnologico Quantum, C.P. 98160, Zacatecas, Mexico; e-mails: antonio.ibarra.g46@gmail.com, agarciafdz@gmail.com, agustin.rumayor@gmail.com
Agustín Rumayor
Affiliation:
Mathematics Research Center (CIMAT), Parque Tecnologico Quantum, C.P. 98160, Zacatecas, Mexico; e-mails: antonio.ibarra.g46@gmail.com, agarciafdz@gmail.com, agustin.rumayor@gmail.com
Carlos Lara-Alvarez
Affiliation:
Center for Research and Advanced Studies, Unidad Tamaulipas, Parque Cientifico y Tecnologico Tecnotam Km, 5.5 carretera Cd. Victoria - Soto La Marina, C.P. 87130, Cd. Victoria, Tamaulipas, Mexico e-mail: calara@cinvestav.mx
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Abstract

Loyalty cards programs have been used by retailers to increase customer retention. Loyality cards provide means to identify a particular customer and to collect customer-specific data, thus enabling individualized marketing; however, operating a loyalty program is complicated for retailers since they require to manage balances, collections, and transfers of customers. This is exactly the same problem the retailers were facing before credit cards were readily available. A new problem is that customers now have too many cards, customers may forget, or even deliberately decide to carry only a selection of their cards. This paper proposes a loyalty program based on a blockchain that does not require a physical card for identifying customers as it associates customers to their phone numbers, since nowadays people always carry their phone. In this perspective, companies can reduce overhead costs associated to managing the loyalty program. This paper reviews the technology required and describes the implementation of a loyalty program based on blockchains. Finally, it also enumerates the reasons for choosing the blockchain technology for this application.

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Type
Research Article
Information
The Knowledge Engineering Review , Volume 35 , 2020 , e12
Copyright
© Cambridge University Press, 2020

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