STORY OF THE LOST REWARD POINTS
Have you ever signed up to those customer loyalty programs with reward points? You must have.
Have you ever gotten SMS and e-mail reminders about your pending points. Something like this:
A lot of times you are at a loss as time passes with these expiring points that you no longer need or don't have any good avenues to spend on.
This seemingly small but widespread problem is what an Indian Tech company Codemojo has set out to solve. They are calling it the Alloy Rewards Network. There Whitepaper puts up a compelling case for the need of such a service and viability of its business model. I am going to lay down a comparatively shorter explanation.
These point systems are used by nearly every company as a marketing and sales tool. Our banks do it through Credit Card paybacks and discounts. All the major retailers like Amazon, Flipkart, Shoppers Stop, Pantaloons and Reliance do it. This is widespread and available data says that globally, 48 trillion Reward points worth nearly $360 Billion go unredeemed each year. A lot of that commerce never happens because the systems for reward points right now are mostly in isolation or in cartels amongst certain big players. This is where the use case for the ICO we are talking about comes in.
COMMON PLATFORM FOR REDEMPTION: ALLOY TOKEN
What the ALLOY Network aims to do is to unify three stakeholders in this ecosystem. Consumers, Brands and the Publishers. They propose a web and mobile-based product where a user can simply punch-in all the Reward points from different brands in one place (Much like you input all your alt-coins in Blockfolio). The app will generate the equivalent value for these reward points in terms of a native currency called the Alloy Token. The Alloy token will have a fiat value tied to it. This can then be used to buy, say, a coffee.
The idea sounds straight-forward enough and it offers value to everyone.
THE BRANDS
For brands, the main purpose of on-boarding to such a system is an opportunity to expand their loyalty program to a global set of consumers coming from other reward programs. Additionally, un-redeemed points are a financial liability for a company and appears as such in their books. These will have a better chance for settlement in a unified reward system.
THE PUBLISHERS
Publishers of websites, apps, games etc. use their own reward systems and have to build them into applications. They even have to pick catalogued selection of offerings and see what they can afford. Using the Alloy Rewards Network, they can do this much more easily and have much better rate of success. Interestingly, the parent company behind this project, CodeMojo has already delivered such services to several companies like OYO Rooms, Reliance Retail etc.
Facts on these are publicly available and can be checked.
THE USERS
The users get to be the happiest minion as they have a plethora of choices available and an opportunity to redeem those dormant points that we all collect by the hundreds from all sort of outlets in our consumerist ways.
JUDGEMENT ON THE ICO
This is a compelling use-case from a team that is already established in the field of customer engagement solutions. The ICO ticks important criteria of a great team and a proven product history. In terms of transparency, all the information on the team is available publicly and the devs are available to respond on the Slack and Telegram channels.
With a sound business-model, this is an ICO which has significant potential.
Here's some links to help you decide:
Link to the Team's existing product website (https://codemojo.io/)
Link to the Bitcointalk ANN THread (https://bitcointalk.org/index.php?topic=2176546.0)
If you decide positively, then you can click my referral link to help me out..:) Referral link, Thanks
Here's a source. I found for theJune 2013 study regarding possibility of blockhain usage for loyalty/reward points.
Thats all for now. Go through these links and make your own decision. I have decided to take the Silver membership for the Pre-Sale myself. Good Luck.