i3 - July/August 2019 - 25

blockchain's role in the retail process. He points to
new "Blockchain-as-a-Service" cloud products
from Microsoft and Amazon.
"This is an important development and a signal to
those in the industry who are ready to begin deploying and using blockchain at enterprise scale," Cutts
says. "There are parallels to the mass deployment of
machine learning and artificial intelligence, which
have just now begun in earnest. Cloud deployment,
such as the Amazon/Microsoft project, is a critical
first step in taking blockchain out of the proverbial
laboratory and cementing it in the enterprise."

ENHANCING CUSTOMER LOYALTY

"Blockchain has interesting applications for securing
cargo, providing an audit trail for all the hands that touch
the goods on their way to store shelves," explains Jack
Cutts, senior director, business intelligence and research
at CTA. He cites use cases in which merchants have "the
ability to dictate how their goods will be handled and what
underlying tracking and inventory systems will be used."
As a result, Cutts says, "A retailer who is determined
to use blockchain to drive efficiency or track performance of different vendors has the ability to push
blockchain into the equation where it would not otherwise happen organically."
Cutts cites ventures from significant industry organizations that may jump-start the perceived value of
C TA . t e c h / i 3

Customer loyalty programs are especially adaptable to blockchain features. For example,
Techrock, the Chinese e-commerce store, offers its
customers a blockchain loyalty token called "Tael."
Shoppers can earn Tael by using the Techrock
label to verify authenticity, a driving factor in
Techrock's use of blockchain.
Tokens are also awarded for purchasing products
and referring friends. Rakuten, Japan's largest
e-commerce company, is collaborating with
Techrock, enabling Chinese customers to shop
from both companies. Other merchants can purchase tokens to distribute as promotional premiums. The blockchain technology keeps track of the
entire process, with an emphasis on assuring customers that they are not only earning rewards but
also are avoiding counterfeit products.
In France, the startup Universal Reward Protocol
has developed a "WeWard" mobile application
based on blockchain technology that allows shoppers to collect digital money (called "Wards") whenever they interact with partner merchants. The
blockchain technology keeps track of use and lets
customers exchange the Wards for cash, products,
gift cards or coupons inside the dedicated marketplace. Rewards are actually cryptocurrency.
Yves Benchimol, CEO and co-founder of Universal
Reward Protocol insists the system is not a traditional
loyalty program, which typically focuses on purchases
to retain existing customers. "URP has a broader
reach," he explains. "It provides retailers with the
opportunity to reward any behavior they deem relevant to better target existing customers or to attract
new ones. Earned tokens can be redeemed through
tailor-made offers designed to meet the shopper's
needs based on collected data" - a process made possible by blockchain connections.
JULY/AUGUST 2019

https://cta.tech/News/i3.aspx

i3 - July/August 2019

Table of Contents for the Digital Edition of i3 - July/August 2019