Redefining Loyalty Programs With The Help of Blockchain

Loyalty programs are a dime a dozen and they're probably worth less than a dime to many consumers. Be it a retailer, a gym, an airline, banks or even an insurance company, it seems like everyone is deseprate to hold on to you as a client with this really restrictive loyalty programs. Loyalty programs very often have zero added benefit to the consumer and is solely a marketing access that allows for additional legal marketing being spammed on clients to encourage them to use a service or buy goods more often in order to receive discounts or cash backs that are hardly worth it.

Consumers are becoming more and more frugal with the way the allocate their disposable income and programs that aren't used often like a loyalty program to a certain retailer you hardly shop at will be the first to be cut and the churn rate of customer loyalty programs are normally very high as you constantly have to get new consumers in to keep it viable as the drop out rates are so high.

So if many of these loyalty programs don't make sense for consumers and don't make sense for all businesses, then why are they still around? Simple they increase average shopping carts for clients who remain in the system and is predicated on the fact that they're always going to be new suckers to lure into the system. When that dries up, these loyalty programs usually go belly up very quickly.

Lack lack liquidity

The lack of liquidity in loyalty progams also reduce the liklyhood of spending due to limited competition. For example I have 5000 points with $500 retailer A who is part of my loyalty program sells a laptop for $399 but retailer B sells it for $349. Now im forced to choose, should i save my loyalty points for another purchase and get the cheaper option at retailer B or buy with retailer A simply because i have the points.

This sort of restrictions limits your purchase power and reduces the amount of loyalty point value spent.

What is the problem Qiibee looks to solve?

The problem with loyalty programs does not lie in the concept but often in the execution with limited benefits offered within the ecosystem, many loyalty programs are launched prematurely or simply cannot sustain themselves. Industries who have suceeded in having thriving loyalty programs has been the banking sector. Since its in the banks interest for you to spend the credit they provide you with they normally rope in partners across different retail verticles like fill up stations, grocery stories, fashion, electronics, travel agencies etc.

Encouraging you to spend with these preffered suppliers in order to qualify for your benefits. This has had some relative success but isn't practical as you may not have these retailers in your phyiscal location at all times and would either miss out on benefits or have to go out of your way to get them. This sort of fragmentation has held back the loyalty program from becoming a sustainable economy.

There are literally billions of dollars sitting unused in loyalty points each year which could be put to good use if there was more freedom to purchase or trade these financial assets.

What is Qiibee?

One blockchain start up by the name of qiibee has looked at this problem and intends to liberate the loyalty program and the cash stuck in these programs. Qiibee intends to unify the market by using the power of the blockchain! Allowing users to interchange the value they've collected in various loyalty programs and being able to exchange it on an open market. Just as cryptocurrency users can use exchanges to trade between currencies, qiibee wants to build a free marketplace where customers can exchange their loyalty points.

How does Qiibee work?

Businesses with loyalty programs will need to subscribe to Qibbe via a simple Integration

• Step 1: Decide a budget. (The fiat value of your loyalty program)

• Step 2: Convert budget into loyalty tokens.

• Step 3: That's it! Businesses can still continue to use their own apps and interfaces in interacting with the tokens.

Loyalty programs with improved customer experience

The value within your loyalty program will then be run via Qiibee token and the blockchain allowing users of your loyalty program to trade their loyalty points as a commidity and purchase with a variety of outlets. This will not only increase the number of purchases across all retailers but improve the earnings of various loyalty programs.

Getting brands on board

Qiibee also has some very exciting brands it will look to intergrate with and tap into an exisiting customer base of millions of users without a very high acquistion cost.

Brands that will be supported by Qiibee

From clunky to classy

I've personally cancelled all of my loyalty programs apart from the one I have with my bank since I receive benefits for my everday use of my account. Qiibee will have the ablilty to drive this on an exponential rate, free up grey currency, increase cross retailer and loyalty program purchases and create a viable loyalty program economy that could be used cross border as well.

This sort of scalablity makes it a very exciting project and I look forward to seeing its implimentation and application within the sector.

For more information about Qiibee

• Website
• Whitepaper

This post was created as a submission for the @originalworks writing contest found here

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