Loyalty on the Blockchain to Accumulate 4.59 Billion USD in One App
Loyalty programs are constantly implemented by the most famous brands in various industries in order to maintain customer loyalty. According to the new market research report “The Loyalty Management Market by Type of Solution”, it is expected that by 2021 the loyalty program market will reach $4.59 billion. The essence of the loyalty programs and their management approaches still leave much to be desired as customers quite often ignore such implementations and here is why:
According to statistics, customers often refuse to use the loyalty program applications due to the lack of transparency in accruing and using bonus points, conditions for their receipt, limited use, as well as their expiration dates. In such cases, this leads to a negative attitude of customers to the brand of the company, which entails further financial costs. This is an occasion to revise the company’s plan for implementing the loyalty program and turn to innovative technologies that radically change the perception of customers about the reliability and variety of bonus systems.
The competitive edge that blockchain can bring to the market for loyalty programs is numerous and is only now being fully appreciated by large retail chains. The Credits platform is precisely the blockchain project that offers a full-fledged solution for loyalty programs.
Bonoox Loyalty Platform is a blockchain-based loyalty system to support brand loyalty programs. The platform allows companies (users) to issue loyalty points in the form of tokens in the Credits blockchain to improve interaction with customers.
The Credits blockchain allows Bonoox loyalty program operators to distribute loyalty points in the form of tokens, which have exchange properties between other network participants allowing customers to benefit from the services of different enterprises. Moreover, improved interaction between customers and the ability to track the spending and accruals allows to generate new traffic and increase the company’s profitability. The platform allows combining several loyalty programs into one system with integrated infrastructure.
Business Model Adoption
The Bonoox integration process is quite simple, as the company creates its own digital asset or token through the use of the Credits smart contracts. The token serves as a loyalty bonus, and the smart contract contains all the information about the conditions of the program. The companies (users) are able to establish any suitable terms for their loyalty programs. Companies are also offered the opportunity to develop an application for their customers, allowing them to make purchases through QR code, NFC or RFID tags.
The loyalty program involves the creation of a mobile or web account, which, using the new technology, binds a unique identifier with public and private keys and a digital signature. When making a purchase, loyalty points are automatically distributed through the Credits platform, and the whole history can be traced in the blockchain monitor.
The main feature in the new loyalty system is the liquidity of the received bonuses. The functions of storing tokens on personal wallets, tracking balances, and exchanging tokens add new value to loyalty programs allowing company customers to take such programs seriously.
“Soom Hizar” Restaurant Chain Loyalty Program
- App: under development
- Amount of company users: 50,000 visitors per month on average
- SH Token
Fitness Loyalty Program
Sevastopol Hotel Loyalty Program
- App: under development
- Amount of company users: 5,000 visitors on average
Further expansion will allow an increasing number of people to change their perception of loyalty programs in a positive direction. On questions of launching the new blockchain-based loyalty program, please contact – [email protected]
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