Building Reefic Protocol — A Connected Loyalty Ecosystem

An integrated exchange habitat that links customers, merchants and solution providers together.

Loyalty programs have gradually been gaining recognition in the market. While brands were once purely focused on acquisition, marketers are slowly realizing that loyalty programs are just as important.

In fact, according to Nielsen’s Global Loyalty-Sentiment Survey in 2016, 74% of loyalty program participants agree that loyalty programs make them more likely to continue doing business with a company, and 67% agree that they shop more frequently and spend more at retailers with loyalty programs.

However, not all loyalty programs are sailing at their full potential. Previously, we outlined Troubles with Loyalty Reward Programs and how building a connected loyalty ecosystem can eliminate the potential problem sources.

In this article we will share more about Reefic Protocol — A Connected Loyalty Ecosystem and analyzing its key points.

Reefic Protocol is an integrated exchange ecosystem that links customers, merchants and solution providers together. It is a decentralized platform where customers have the fluidity and security of exchanging reward points and vouchers across multiple loyalty programs and selected cryptocurrencies.

Furthermore, businesses and loyalty reward program providers, no matter their size, can continue to have full control over how their customers interact within their loyalty programs, allowing each to fulfil their own strategic agenda.

Reefic Protocol is a…

1. Facilitator, not a substitute of existing loyalty programs.
   - Reefic Protocol promotes symbiotic and not antibiotic relationships.
   - Reefic Protocol accommodates and preserves the independent customization of reward distribution for different businesses and program providers.
2. Portal that ensures near-real-time exchange of loyalty rewards.
   - Reefic Protocol streamlines the convertibility and trading of reward points by using a single digital wallet without multiple layers of administration.
   - Readily available rewards increase redemption transactions.
3. Inclusive reward network which allows even the smallest micro business to benefit.
   - Service providers can collaborate to provide interchangeability of value-added goods and services to customers in the same pool.
   - The accessibility of Reefic Protocol encourages customers to experiment on offers from fringe businesses.
4. Secure and immutable trade house that prohibits the corruption of information.
   - Exchanges within Reefic do not rely on the private information of its users.
   - Reefic Protocol records all transactions in an irreversible manner to prevent unfair liability through fraud, double spending and manipulation.

a) Digitisation of Loyalty Programs

The hospitality and service industry is still mainly made up by traditional brick and mortar businesses, many of which lack robust online capabilities. To create a sustainable ecosystem for a modern economy, it is necessary that Reefic Protocol helps to digitise the industry.

To this end, Reefic Protocol will partner with POS and loyalty program providers to offer a comprehensive service to merchants, be it a white-label or private-label solution. Through these partnerships, Reefic Protocol will be capable of providing an early spread of businesses for customers to exchange their points with.

This is especially the case for the Asia Pacific region where Reefic Protocol will start to grow. For merchants who decide to adopt a white-label solution integrated with Reefic Protocol, they will not only be empowered to design their own loyalty programs but will benefit from the added access to a wider ecosystem of customers through Reefic Protocol.

b) Sustainable Ecosystem

Based on a survey by Forrester of 3,322 US online adults who belong to a customer reward program, the top 10 most popular loyalty programs are shown as above.

Although percentage values may vary based on geographical location of the customers, the same survey also reported that 24% of the customers felt that they belong to too many loyalty programs.

In order to build a healthy ecosystem, Reefic Protocol will encompass a good spread of business types. This spread will help encourage customers to accumulate the rewards and potentially exchange them for rewards that they need.

c) Bridging Virtual Games to Real World Customers

According to a study by a 2017 by Prophet, gaming has become part of the mainstream culture for many years. Over 960 million people across the world now plays regularly on smartphones and other devices.

Business owners in the service industry understand this, and seek to provide the same rich and multidimensional experience each time a customer meet up with their brands. However, similar problems from the hospitality and service space are plaguing the mobile game industry.

A 2016 study from GameAnalytics showed that:

Less than 40% of players return to a free-to-play game just after one session. A game’s financial success largely depends on the size and fidelity of your audience.

Furthermore, according to a 2017 study by eMarketer:

Study shows that there is a 29% increase spent on App Marketing from USD 5.87 Billion in 2016 to USD 7.58 Billion in 2017.

This matrix demonstrates just how crowded the digital space is to capture customers attention. The high cost of customer acquisition is one reason why similar standalone loyalty rewards applications do not work.

But what if there is a way to give “tangible” usage to in-game rewards for real-world products or services?

Consider a collaborative and sharing ecosystem where:

1. A casual gamer who enjoys a mobile game can give his in-game rewards with a soccer mom who needed additional in-game currency to clear a level, in exchange for reward points for a free dessert at a local restaurant, or
2. A regular at a local hotel gets to exchange the points accumulated from his stay with an avid gamer visiting the city for a video games exhibition, for a limited edition in-game costume for a mobile role playing game that he enjoys.
3. A gaming enthusiast gives his in-game rewards for a game he is no longer playing to help a new player within the same game, in exchange for credits to ride on a local ride-sharing service.

It is not far-fetched to consider in-game currency as loyalty reward points since both are incentivizing participation and activity within their services.

A combination of the two can spark new and interesting offers that give unique value to customers, developers and merchants alike.

By encouraging partnerships between merchants and developers, Reefic Protocol provides a platform where:

Reefic Protocol is able to provide a tangible usage to in-game rewards for real world products or services. :)

Next post will explain further on the details of Reefic Protocol and realize its potential as a valuable and viable business asset— one that is profitable to your business.

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Website: https://www.reefic.io/
Medium: https://medium.com/reefic
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LinkedIn: https://www.linkedin.com/company/reefic/
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Telegram: https://t.me/Reefic