Technology can revolutionize industries when applied thoughtfully.
When it is about As customer engagement strategies evolve, especially in the traditional coupon and promotion landscape, innovation is transforming outdated manual and paper-based workflows.
Xiang Xuglobal COE leader in digital strategy and blockchain at Mondelez InternationalAnd Reference co-founder and CEO Bobby Tinsley told PYMNTS’ Karen Webster that advancements in distributed ledger technology (DLT) and blockchain are game-changing advancements for the retail and payment-based offerings ecosystems.
When it comes to In the traditional coupon and promotion landscape, there is plenty of room for technology and innovation.
“For reference, in today’s traditional paper coupon processes, it takes seven to ten days for the consumer to to possibly redeem a coupon at a retail storeand we have no data or idea about who presented this coupon or what product they purchased,” Xu said, adding that Mondelēz, known for iconic brands like Oreo And Cadburyhas historically relied on traditional couponing methods involving paper checks and mail-in promotions.
This existing system was once effective, but it is increasingly disconnected from modern consumer behavior.
“The future of promotions is in payments,” Tinsley said. “And the future of consumer engagement lies on the mobile device.”
Paper promotions and the transformative role of blockchain
In a joint effort to create a secure and transparent end-to-end customer offering experience, linked to an immutable record of transactionMondelēz and SKUx in partnership this month to innovate beyond the conventional couponing process. The collaboration led to a proof of concept (POC) that took Mondelēz promotions to a digital format, reducing redemption times from days to seconds and achieving a 90% conversion rate – an improvement over to the paper system.
“Just click the link and use the coupon instantly,” Xu said. “This is what the user experience looks like. Gen Z or Gen X consumers will never use anything on paper.
Blockchain technology underpins this new digital promotional system, providing transparency and efficiency. The two leaders explained that by using DLT through partnerships, including those with Hedera Council and the Association of hash graphsMondelez And SKUx can track and trace every promotional transaction in real time.
“Blockchain has always been very crypto-focused, instead of actually using the ledger for what the ledger is, which is tracking and tracing transactions,” Tinsley said. “The ability to provide unparalleled transparency into the data we feed on behalf of our partners, that This is where it becomes revolutionary for retail.
By eliminating paper processes, businesses can save on costs associated with printing and distributing physical coupons, reduce processing times and improve the consumer experience. The immutability of blockchain ensures that once an offer is used, it cannot be fraudulently reused, providing brands with greater confidence in their promotional strategy. spend. This level of security and transparency not only supports the business case for brands, but also appeals to retailers who can benefit from streamlined processes and increased consumer engagement.
See also: From transaction to transformation: the fidelity of blockchain Proposal
A holistic approach to consumer loyalty and engagement
While there is a strong desire for digital transformation, businesses need to be convinced of the long-term value and return on investment (ROI) associated with adopting new technologies, Xu said. Incremental improvements to traditional systems are not enough to achieve significant growth targets. Instead, transformational change – supported by advanced technologies like blockchain – is needed to drive long-term efficiency and profitability.
A key aspect of the approach taken by Mondelēz and SKUx is the development of a new promotional rail, independent of suppliers and payment networks. By offering digital promotions compatible with various payment methods and integrating them into existing loyalty programs, SKUx aims to create a seamless experience for merchants and consumers, Tinsley said. This infrastructure allows brands like Mondelēz to deliver tailored promotions that can be instantly redeemed, more accurately track consumer engagement, and drive incremental sales.
Xu and Tinsley are also exploring ways to further expand this ecosystem. Beyond digital coupons, they said they see potential in integrating retail loyalty programs and developing new types of wallets that connect brand and retail loyalty. In doing so, they aim to create a more integrated financial relationship within the promotional ecosystem, which not only incentivizes consumers but also benefits stores and brands.
Yet scalability and interoperability remain challenges that the The partnership between Mondelēz and SKUx aims to meet the needs of companies that move beyond proof of concept and enter full production. While the initial rollout focused on the US and Canadian markets, efforts are now expanding to Latin America, Europe And Asia, Xu said. This international expansion involves navigating different currencies, retail environments And regulatory requirements, testing the flexibility and robustness of their blockchain-based system.
In doing so, Mondelēz and SKUx aim to redefine the way brands interact with consumers, going beyond the limitations of traditional promotional models.
“Having this layer of DLT infrastructure gives us confidence that as we grow and scale these use cases, that you We can trust the data,” Tinsley said.
