The importance of cryptocurrency in unified reward system
One of the most important and often used metrics for measuring today’s retail e-commerce success is the customer loyalty and reward program. Nowadays, virtually all the retail and e-commerce stores use some sort of loyalty reward programs; either to reward the existing customers or woo the potential ones. As a result, the loyalty and reward programs have spread across different industries including but not limited to financial services, travel, and retail. In reality, everyone most likely has been involved in any of the loyalty programs on different occasions. You must have used digital notes, plastic cards or coupons, which carried some values within the ecosystem of a company that issued the points. The 2015 Colloquy loyalty census reported about 29 different loyalty programs for different U.S households. The study also highlighted different redemption options and point systems, typified by long and complicated methods of exchanging points and redeeming codes among the several program partners.
From the foregoing, therefore, it is obvious that the traditional loyalty reward program is suffering from a whole host of maladies. While most loyalty programs can be redeemed online or even now traceable, they still do not have the properties of a digital asset. Of course, there is often the need to adopt different approaches like banks or other intermediaries; which has additional security threats and increases the costs. To aptly put it, a lack of a unified reward system is evident, and which has led to a low liquidity of the reward points. These points are only redeemable at a E-commerce store and not always easy to do. To make this easier, ARAW token is here to disrupt the traditional loyalty reward industry and introduces tokenization to the world of E-commerce reward system.
“The ARAW Token,” owned by ARAW UK Ltd, a new cryptocurrency, seeks to change the conventional method of rewarding consumers by offering greater value to customers in the form of a universal loyalty currency usable by the different E-commerce stores and/or retailers.
CRYPTOCURRENCY AND UNIFIED REWARD PROGRAMS
Cryptocurrency, through blockchain, permits a transaction ledger to be easily shared among a network of members or participants. When a loyalty point is redeemed or exchanged, while creating a verifiable, secure, and strong record of the transactions, new blocks are developed and linked to the older blocks without any need for centralized databases or intermediaries. The above illustration explains how blockchain, adopted with cryptocurrency, is applicable to the loyalty reward industry. By now, cryptocurrency has been adopted in several industries and the recent paradigm in crypto space and reward programs won’t be an exception. The impacts are real and clear. Cryptocurrency gives E-commerce stores, retailer or merchants the needed efficient and simple tools to reward their consumers, which further enhance the unmediated interactions and transactions between individual merchants, retailers, and consumers.
For customers missing a variety of reward programs, cryptocurrency offers instantaneous exchange and redemption for several E-commerce stores on a single platform. For Instance, using ARAW wallet, all ARAW token holders do not need to look for each program’s redemption rules, limitations, and options. The tokenization of loyalty points is worth mentioning here and has, to some considerable extent, reshaped and incentivized the loyalty reward industry. Based on cryptocurrency, it is easy and simple to transfer rewards between merchants and even exchange for cryptocurrencies or fiat on any of the crypto exchanges.
Built on the technology of Blockchain and smart contracts, ARAW token is Blockchain based unified rewards platform specifically for the retail and E-commerce industry. The ARAW token aims to revamp the present fragmented industry and introduce unified reward system for the Ecommerce stores on the platform.
With the various offerings of the ARAW Platform, we are set to unseal the current limitations found in traditional customer loyalty programmes and hasten the development of a more cooperative, unified, and competitive customer reward industry. We aim to replace the traditional restrictive reward points system used by typical commerce companies with a blockchain-backed dynamic currency that increases participation and interaction between customers and services. We have the unprecedented opportunity to unlock the full potential of rewards programmes by combining all sales entities — pooling together a limitless customer base and rewards on offer.