According to the Bond Loyalty Report, where 280 loyalty programs across all industries are described, in 2017, only 50% of all members were active. Notably, one-fifth of these 50 percent had never redeemed their rewards. The first and foremost reasons for these inefficiencies is the lack of uniform management systems across loyalty and rewards programs, which confuses customers.
One of the popular business approaches to addressing the low points redeem rate is cooperating with other businesses to offer interchangeability of the reward points within the joint scope of services. In particular, they are required to maintain the accounting aspect of the loyalty points, where each party has to audit transactions and secure data from fraudulent attacks. With this regard, joint loyalty programs can quickly become a complex and expensive effort.
Therefore, challenges and pain points for retailers are the costs associated with establishing, operating, and securing loyalty points programs, low redeem rate of earned loyalty points, customers finding the signup process overly complex, and the vital need to secure the data associated with the programs from hacker attacks or altering account balances.
Our approach – tokenization as a way forward
Tokenization is the process of transformation of rights to an asset into a digital token on a blockchain. It provides a way to enable efficient ownership transfer and secondary market in the retail industry.
Tokenized loyalty programs go way beyond classic plastic cards approach and take businesses to the next level of customer interaction without intermediaries, compromising privacy, or competitiveness.
As a blockchain-based ecosystem with its own loyalty platform, STOBox Platform gives brands the chance to build their own applications within their system. Customers, as usual, earn rewards for their purchases, however, these rewards are then tokenized. This allows customers to redeem rewards with any business on the platform that accepts this token. This solution provides for a higher flexibility, compared with traditional loyalty programs, while also giving brands greater access to all customers within the ecosystem.
STOBox Platform – an innovative software solution
STOBox Platform allows creating your own tailored solution for the tokenized loyalty points programs with the necessary set of features and a secondary market for customers to trade. STOBox Inc., utilizing the benefits of blockchain, provides the ability to create a fully integrated solution.
* Tokenization of loyalty points creates a brand-new market for secondary trading between customers;
* Tokenized loyalty points issued on the blockchain can be transferable and tradable, unlike their ancestors;
* The company can issue specific tokens for different types of customers;
* Using tokenized loyalty points makes it easier for the customer to receive a reward compared to regular centralized solutions.