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Library/Papers/From ambivalence to trust: Using blockchain in customer loyalty programs

Research paper

From ambivalence to trust: Using blockchain in customer loyalty programs

To reduce customer ambivalence toward green electricity tariffs, the paper develops a blockchain-based loyalty program refined over four iterations, structured around six design objectives (accountability, customizability, simplicity, efficiency, maintainability and affordability) with fourteen underlying design requirements, and derives four generalized design principles (customer agency, verifiable information, appropriate usability, and data access).

Paper
OverviewDSR gridPaper design mapDesign knowledgePublication metadata

01

Overview

Publication metadata and narrative from the current library record.

Authors
Manuel Utz, Simon Johanning, Tamara Roth, Thomas Bruckner, Jens Strueker
Year
2023
Venue
International Journal of Information Management 68 (2023) 102496
Methodology
Design science research; four iterations; workshop and 18 ex-ante expert interviews.
DOI
10.1016/j.ijinfomgt.2022.102496
Design knowledge
View design knowledge on GitHub
ambivalence-trust-loyaltyblockchaincustomer-loyaltydesign-science-researchenergygreen-electricitytrust

Summary

To reduce customer ambivalence toward green electricity tariffs, the paper develops a blockchain-based loyalty program refined over four iterations, structured around six design objectives (accountability, customizability, simplicity, efficiency, maintainability and affordability) with fourteen underlying design requirements, and derives four generalized design principles (customer agency, verifiable information, appropriate usability, and data access).

Artifact

A blockchain-based customer loyalty program for green electricity tariffs.

Methodology

Design science research; four iterations; workshop and 18 ex-ante expert interviews.

02

DSR grid

Six dimensions represented in the current paper record.

01

Problem description

Customers of green electricity tariffs feel ambivalence - lost trust plus distrust from information asymmetries and unmet 'green' promises - which may lead them to switch suppliers.

02

Input knowledge

Theories of trust, distrust and ambivalence; customer-loyalty literature; kernel-theory-to-artifact relations (Walls et al.); blockchain and IoT.

03

Research process

Design science research refined over four iterations, with a workshop and eighteen ex-ante expert interviews.

04

Key concepts

Ambivalence, blockchain, customer loyalty, design science research, distrust, trust.

05

Solution description

A blockchain-based customer loyalty program for green electricity tariffs using loyalty tokens and local IoT controllers. Solution-space representation: Instantiation (program/prototype) plus design objectives and requirements (nascent design theory) plus four generalized design principles.

06

Output knowledge

Six design objectives (accountability, customizability, simplicity, efficiency, maintainability, affordability) with fourteen underlying design requirements, and four generalized design principles (give customers agency, provide sufficient and verifiable information, consider appropriate levels of usability, give data access to customers).

03

Paper design map

The default semantic design map canonicalizes stored design relationships; Raw links retains the complete technical Markdown-link view.

Design-knowledge map

24 stored concepts / 14 canonical semantic relationships

Concept types
Design Objectives
Design Requirements
Design Principles
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04

Design knowledge

Directly linked concepts, grouped by their represented design-knowledge category.

6 Design Objectives

design-knowledge/ambivalence-trust-loyalty-do1

DO1 - Accountability

Provide tamper-proof and easily accessible storage of data in the blockchain network, displayed in a readily accessible and verifiable way, together with tamper-proof and automated data processing, so customers have control over their data and the electricity supplier cannot manipulate it.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2
design-knowledge/ambivalence-trust-loyalty-do2

DO2 - Customizability

Let customers set rules for their smart appliances based on generation and consumption data so that electricity consumption aligns with their sustainability preferences.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2
design-knowledge/ambivalence-trust-loyalty-do3

DO3 - Simplicity

Provide an intuitive user interface so customers, who vary in their degree of digital literacy, do not have to deal with the technical details of blockchain technology; deliver all information needed for setup and enable automatic smart device detection.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2
design-knowledge/ambivalence-trust-loyalty-do4

DO4 - Efficiency

Enable seamless, reliable and scalable information exchange between electricity supplier and customer, minimizing blockchain data processing to retain high uptime and availability.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2
design-knowledge/ambivalence-trust-loyalty-do5

DO5 - Maintainability

Enable the architecture to connect to different legacy systems, with connection uptime easy to monitor by IT administrator staff, and give customers responsibility for the design of their service agreement by making Nexo Energy easy to order.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2
design-knowledge/ambivalence-trust-loyalty-do6

DO6 - Affordability

Keep participation in the blockchain-based loyalty program affordable for customers, keeping additional-service and hardware costs (e.g., low-cost local controllers) reasonable.

ambivalence-trust-loyaltycustomer-loyaltydesign-objectiveenergy+2

4 Design Principles

design-knowledge/ambivalence-trust-loyalty-dp1

DP1 - Give customers agency

Customer loyalty programs should not anticipate all services but instead leave room for customers to shape their own portfolio of desired services and functions, giving customers a real sense of choice and agency.

ambivalence-trust-loyaltycustomer-loyaltydesign-principleenergy+2
design-knowledge/ambivalence-trust-loyalty-dp2

DP2 - Provide customers with sufficient and verifiable information

Customer loyalty programs should proactively ensure that customers can access all required information in an easily verifiable manner, since simple consumption management and reliability control are enormously attractive to customers.

ambivalence-trust-loyaltycustomer-loyaltydesign-principleenergy+2
design-knowledge/ambivalence-trust-loyalty-dp3

DP3 - Consider appropriate levels of usability for customers

Customer loyalty programs should not proactively reduce access to more granular information but instead provide different levels of didactical reduction while retaining the basic message, since customers vary in digital literacy.

ambivalence-trust-loyaltycustomer-loyaltydesign-principleenergy+2
design-knowledge/ambivalence-trust-loyalty-dp4

DP4 - Give data access to customers

Customer loyalty programs promise the greatest success if they include an option for customers to be granted access to all relevant and verifiable data, reducing the information asymmetry between supplier and customer.

ambivalence-trust-loyaltycustomer-loyaltydesign-principleenergy+2

14 Design Requirements

design-knowledge/ambivalence-trust-loyalty-dr1

DR1 - Tamper-proof and easily accessible storage of data in the blockchain network

Tamper-proof and easily accessible storage of data in the blockchain network, displayed in a readily accessible and verifiable way.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr2

DR2 - Tamper-proof and automated data processing

Tamper-proof and automated data processing, for instance via smart contracts, to avoid the storage of erroneous data or its manipulation during information transfer.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr3

DR3 - Secure storage of electricity generation data

Secure storage of electricity generation data in the blockchain network.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr4

DR4 - Secure storage of electricity consumption data

Secure storage of electricity consumption data in the blockchain network.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr5

DR5 - Intuitive and comprehensive adjustment of electricity consumption

Intuitive and comprehensive adjustment of electricity consumption, depending on the share of renewable or green electricity in the grid.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr6

DR6 - Deliver all information for setup process

Deliver all information for the setup process, should the electricity supplier deem it necessary or desirable that customers set up the system without the support of a technician.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr7

DR7 - Automatic smart device detection

Automatic smart device detection, to ease the setup process for customers.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr8

DR8 - Intuitive user interface

An intuitive user interface, so users should not have to deal with the technical details of blockchain technology when monitoring generation and consumption data or managing their GET and sustainability bonuses.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr9

DR9 - Fast data synchronization between software components

Fast data synchronization between software components.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr10

DR10 - High software uptime and availability

High software uptime and availability, since blockchain does not scale as easily as other technologies, so data processing via blockchain should be reduced to a minimum.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr11

DR11 - Easy to monitor by IT administrator staff

The uptime of the connection to different legacy systems should be easy to monitor by IT administrator staff, so they can make helpful interventions should any be required.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr12

DR12 - Easy to order for customers

Nexo Energy should integrate existing GETs and make it easy to order for customers who wish to use it in addition to existing or new GETs.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr13

DR13 - Affordable for customers

Participation in a blockchain-based customer loyalty program should remain affordable for customers.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2
design-knowledge/ambivalence-trust-loyalty-dr14

DR14 - Reasonable costs for operation

It is important for electricity suppliers to ensure reasonable costs for operation before they implement a blockchain-based customer loyalty program.

ambivalence-trust-loyaltycustomer-loyaltydesign-requirementenergy+2

05

Publication metadata

Additional metadata represented in the current library record.

Show additional metadata+
{
  "type": "paper",
  "title": "From ambivalence to trust: Using blockchain in customer loyalty programs",
  "description": "To reduce customer ambivalence toward green electricity tariffs, the paper develops a blockchain-based loyalty program refined over four iterations, structured around six design objectives (accountability, customizability, simplicity, efficiency, maintainability and affordability) with fourteen underlying design requirements, and derives four generalized design principles (customer agency, verifiable information, appropriate usability, and data access).",
  "resource": "https://doi.org/10.1016/j.ijinfomgt.2022.102496",
  "authors": "Manuel Utz, Simon Johanning, Tamara Roth, Thomas Bruckner, Jens Strueker",
  "year": 2023,
  "venue": "International Journal of Information Management 68 (2023) 102496",
  "methodology": "Design science research; four iterations; workshop and 18 ex-ante expert interviews.",
  "dsr_grid": true,
  "dsr_solution_space": "Instantiation (program/prototype) plus design objectives and requirements (nascent design theory) plus four generalized design principles.",
  "tags": [
    "ambivalence-trust-loyalty",
    "energy",
    "customer-loyalty",
    "trust",
    "green-electricity",
    "design-science-research",
    "blockchain"
  ]
}