The future in tokenization of the loyalty programs: using Waves Blockchain in tokenloyalty.io project
The main problem of customers lies in this, that loyalty points are not money and are governed through centralized organisms like merchants. The main problem of merchants is that loyalty programs generate costs and there is no tool combining marketing gamification schemes with such loyalty scheme.
There are three main solutions to that state:
Decentralization of the ecosystem.
Merchants will have to attract the users of the ecosystem to join campaigns, while ecosystem users have free will to join in. Also any customer may be in the position of a merchant, building own campaigns.
Decentralization gives opportunity to be in a position of both sides. Anyone can use tokens to build an Overlay on the basis of tokenloyalty.io token or use our project to make own campaigns in the Overlay. The advantage of our Overlay is that It will aggregate merchants into one ecosystem. This is very important because of the behavior of customers as loyalty program users and merchants, who want to operate freely either in ecosystem (SMEs) or individually, which is very often used in corporations.
As our study shows in group of loyalty program users, main problem is that any effort they make to collect points (and that effort is even to use 2 or 3 clicks in the application) must be granted with a prize. We have made a simulation of effort and people divide into several groups, however there are common things in attitude, like money, prizes.
We have made a PAPI on selected respondents: group under 25 years old and a group above 30 years old. This study was made in June and July. Group <25 N=8/ Group>30 N=17.
Points are token, token is money.
Our study showed that for one of the groups (major one) basic functionality will be to collect money and have ability to realize them in partner network of shops, services etc. HOWEVER, if the effort is granted with good prize, they are changing into aggressive lead generating officers based on social mechanism. This is based on activation of users that is based on gamification mechanisms.
Pay per lead.
For merchants it is very important to have return from the investment. In traditional loyalty programs it is all about costs. For example, points are calculated such way to generate demand on products with highest margin to get something from their price and lower the basic costs of the program. But customers are not foolish, as well as they would like to have freedom in collection of points on things they really want to buy. This is why we have thought about an ecosystem where merchants pay per leads (any user active in the campaign is a lead), which is closer to marketing based systems than loyalty programs.
Waves is the Gate
Waves blockchain technology and the whole ecosystem is devoted to B2C and C2C solutions. The team declares that solutions brought in the Waves (like Waves NG protocol) are advanced technologies but packed into a bunch of packets that are “eatable” for the common, non-technological users. That is true. That is why we have selected Waves and basic blockchain solution for our product, mostly due to advanced API and other incoming solutions that will help in integration of loyalty-based services.
What will show the future?
The future show that use of blockchain in the common branches of economy will be progressive. There is quite a need for innovative solutions and, as our study shows, DLT and more advance, blockchain based technologies came into regular (non-technological) customers, which should push the market for new solutions.