Introducing BitRewards: What is a smart contract and how will e-commerce retailers benefit?
Trust creates loyalty. Between brands, retailers and consumers, this is a two-way street. Customers who keep coming back get rewards, such as exclusive discounts and early access to new products and services.
Cultivating and improving this relationship between customers is big business.
Every year millions of retailers spend more than $20 billion on software that improves the ROI of loyalty schemes. Online and in-store retail is competitive. Any and every advantage is worth pursuing. Building trust and loyalty takes time and sustained effort.
Loyalty programs are not only costly, but time-consuming and cumbersome to set-up. More often than not, customers either get frustrated with using loyalty schemes, or they stop using them, either deleting an app or taking a card out of a wallet and forgetting about it. Sadly, most loyalty schemes don’t pay for themselves. Smaller retailers, in particular, those who would benefit the most from such a scheme, have to shut them down.
We are all too familiar with this problem
Introducing BitRewards
As a team, we have been working for five years solving these challenges. Our company, GIFTD, solves these problems for over five hundred e-commerce retailers, improving revenue 17%, on average, for clients.
We are building BitRewards as a spinoff from this successful business, because with Blockchain technology, we can take a new, more innovative approach towards solving loyalty and rewards challenges, creating more value for retailers, consumers, the community and investors.
BitRewards is a blockchain loyalty platform and ecosystem that enables retailers to reward their customers’ purchases with crypto-currency. Customers, the end-users, are rewarded for their purchases with liquid Ethereum-based tokens (BitRewards), which can be redeemed against future purchasing or offers, or transferred to another crypto-wallet and spent on other goods/services.
For retailers, we will offer access to the BitRewards platform free of charge. The only cost to retailers is purchasing BIT tokens on the open market to reward customers; the cost of which will start from $200/month. Our comprehensive knowledge of retailers needs gives us confidence that thousands will be keen to sign-up.
BIT — Tokens
BitRewards tokens are known as ‘BIT’, and comply with the ERC20 standard. BIT is an internal currency and is used to conduct all operations within the BitRewards ecosystem.
Customers of the online stores participating in the BitRewards Network will receive BIT as a reward— a certain configurable amount or percent off future purchases, purchases of the friends that they referred to the store, shares and likes in social networks and other actions. Retailers are in control of what and how customers can redeem tokens. The reward (in form of cash-back, for instance) will be credited to the customer’s automatically created crypto-wallet connected to the store via a BitRewards plugin.
BIT tokens can be redeemed at the same store, or with the other BitRewards participating merchants via an online crypto-wallet connected to the participating merchants. Customer crypto-wallet’s BIT balance may also be connected to debit cards, giving them the option to spend the converted funds anywhere that accepts Visa or MasterCard.
Customers can also buy BIT at an exchange or via the Bancor liquidity smart contract.
The private key to a token holder’s BIT can be stored on the wallet provided by BitRewards network platform, through a standard Ethereum wallet, or on any wallet supporting the ERC20.
The value of the BitRewards token is determined at the open crypto-currency exchanges. The tokens can be exchanged into ETH, Bitcoin or fiat currencies. BIT tokens are accepted by all merchants that use the loyalty platform and other partners of BitRewards Network.
Improving loyalty returns, reducing customer acquisition costs
The e-commerce market has grown consistently every year, for at least five years, and, according to Statista data, consumer sales will increase more than 70% in the US over the next five years (from $460 billion in 2018 to $638 billion in 2022).
Retaining customers is harder than ever, but even more difficult than that is winning over completely new customers. Customer loyalty, measured in repeat purchases and referrals, is the key driver of profitability for online businesses, even more so than for offline companies, according to a series of joint studies in online retail by Bain & Company.
Unlike other rewards schemes, BitRewards tokens don’t expire. Customers can gain a lot more from holding BIT than other reward schemes. We’ve also ensured that it’s easy for token holders to withdraw them to their other cryptowallets, or redeem them with another merchant through our platform.
For retailers, this is the first rewards platform providing free software. Merchants can also use the API to connect any other loyalty program to BitRewards and BitRecommendations, a custom-tailored recommendations, rewards & discounts part of the platform to be created within BitRewards. Turning loyalty credits into tokens — redeemable with other retailers and convertible into other currencies — increases security and improves customer benefits, which will dramatically enhance user uptake and customer brand loyalty. Customers have more freedom and ease-of-use, which are key drivers to ensure they will spend more on the brand that provides these benefits.
With a robust, flexible and future-proof loyalty scheme, consumers and retailers benefit. Retailers spend less trying to win new customers and acquire more of them. Customers happily spend more with those retailers, or others within the BitRewards network, and with the growth of demand, the value of BIT tokens also tends to increase, ensuring everyone wins.
Find out more about BitRewards and our Token Launch at our site BitRewards.NetWork
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