Loyalty reward programs are nothing new. In fact people belong to so many of them that it's nearly impossible to keep track of these rewards, and many of them even go to waste! Just when you thought that the blockchain couldn't be fused into anything else, here comes Qiibee, a platform that wants to revolutionize the way that you collect loyalty points. At first glance this might seem a little boring in comparison to other avenues that are ripe for blockchain revolution, but consider this.
For a business it can be as high as 25 times more costly to acquire a new customer than to sell to an existing one. This is really the reason that these programs exist in the first place, but now there are so many of them that consumers are burnt out on the whole scheme, and due to the way that they are managed, many consumers don't even utilize the programs that they do belong to! This is troubling to retailers who see sharp profit increases from those who do participate, and all of them are scrambling to increase customer participation. The question is really how do you make it a no brainer for people to actually utilize these programs? Qiibee might just have the answer to that question.
If you're not convinced that a blockchain company could influence major retailers to use a system such as this, that's a valid concern, but this platform isn't just blowing smoke, they've already got partnerships with major brands such as Burger King, Subway, Dunkin Donuts, and other mega corporate partners which they already work with on their current loyalty programs. The blockchain facet of their company is simply an upgrade, one that their partner brands will likely be eager to test out for themselves, but how does it work?
Brands who are interested in joining the platform will set a budget for their promotions. This budget is then converted into their own branded loyalty token, which can be distributed to patrons. The best part about this setup is that it opens the doors for organizations who are not mega corporations. Thanks to the efficiency and low overhead that the blockchain provides, even mom and pop shops will be able to create their own loyalty programs. Since this platform is its own ecosystem, that means that Jim's hardware in small town USA can have his loyalty program and deals appear right next to Home Depot or Ace Hardware's, giving him additional exposure for his business.
Why would consumers care about this though? It's because your loyalty points are also getting upgraded. I have loyalty point cards, somewhere. I don't really know where right now, and I almost never know where they are when I go to the actual store to use them. I had a loyalty card for free cheese bread sitting around for months, because I never remembered to bring the card to the store. We definitely ate pizza, we paid for pizza, but it took us months to get the free item. A totally free item, because we kept forgetting about it.
My partner religiously goes to the same gas station to get points, but I can't be bothered. My mother was much the same. She was the triple coupon, rewards points queen, and it drove me nuts how she'd waste gas driving across town to save 25 cents. It's not that I'm against saving money, it's that I'm against the inconvenience of these programs and having to keep track of it all. However, the blockchain could have me change my tune.
In the Qiibee ecosystem, not only will your points be nearly organized in a nice phone app so you'll never forget them again, but you can even trade them. Have a bunch of points spread around to different stores? Well, what if you could trade your Subway points to someone for their Nike points so you could get a sweet discount on a pair of shoes you wanted? With Qiibee, it's totally possible, and even expected. Their platform turns these loyalty points into an asset, instead of a burden that you have to keep track of all the time. You can even sell these loyalty points for real cash money if you wanted to. Would somebody really buy these? Yes, they would. People do it all the time, especially for airlines where they can receive large perks by bumping themselves up a reward tier.
Let's say that Jan is about to take a big trip on a major airline. She only needs a few hundred points to get bumped up and get some really great perks for doing so. Thanks to some in store promotions, she has a good deal of loyalty points on her Qiibee account, but they aren't really for stores she would use all the time. These might have been large one off purchases such as appliances where she got bonus points for buying them. Instead of letting these points go to waste, she trades them to Bob, who is looking to get a discount on his remodel project at the home improvement store. He trades Jan the equivalent value of airline points that he doesn't intend to use.
If those points don't quite cut it, then either party could purchase the rest of the points they would need if it would provide a big enough discount. If you don't think that there are people who would do this, believe it. Right now, there people all over the internet trying to buy and sell loyalty points, coupons and discounts for various services, there's just not currently an easy way to do it, and some retailers frown upon it. They could change their minds as well though if they start to see it benefit them.
While it may seem questionable that businesses would want to allow this type of trading, the truth is that by doing a little partnering it may actually be more profitable. If Walmart is offering a better deal to consumers on the Qiibee app, it's possible that a good number of people might trade their Target points and shop there instead.
A store or service provider suddenly has the ability to make their loyalty rewards a real world asset, and that's a powerful marketing tool. How much more likely would you be to shop at a grocery store that offers loyalty points that are worth real money? What kind of engagement could a store like this expect from their new loyalty program? I think this is something that Qiibee's many partners are interested to know, and it's not just stores and consumers who can benefit from this platform, but cryptocurrencies in general. This application will allow consumers a free and easy way to start experimenting with ERC20 tokens and to see how their value can connect to real world goods and services.
Learn more about Qiibee at their official website
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This was my entry for the Originalworks contest.
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