DEAL WHAT?
Every year millions of retailers spend in excess of $20 billion on software that improves the loyalty of their customers. They need to do that in order to stay competitive in the current crowded marketplace.
Loyalty programs are not only costly, but also time consuming and cumbersome to set up. Often times, customers get only more frustrated from participation in them, complaining about difficulty to earn points or bonuses and to redeem them to get reward. This results in a fact that most loyalty programs just don’t pay themselves off, and shut down in less than a year.
We are building DealIn as a spin off from our successful business, because blockchain allows introducing a new approach towards loyalty and rewards market, which will create new value for the customers, merchants and community.
DealIn is a blockchain loyalty platform and ecosystem that enables retailers to reward their
customers' purchases, friends' invited and other configurable actions with crypto-currency. It has an absolute value for the customers, as they get for their purchases the liquid Ethereum-based tokens which can be redeemed for purchases or transferred to another crypto-wallet. The price of the tokens is also set for growth due to our unique business model, so these rewards may go up in value in the course of time, rather than expire.
DealIn also brings a lot of benefits to the retailers, because they get customers that are more
satisfied with the rewards in crypto and become more loyal. A comprehensive loyalty program
increases the retailers’ revenue by dozens of percent. The stores are also tapping into the crypto-enthusiasts audience, which is very active and appreciates the attention from the regular businesses.
The unique value proposition for the retailers is that DealIn will offer this valuable and expensive
loyalty technology free of charge. The retailers will only have to buy in the open market the DLN to reward their users. The value of such software starts from $300/month, therefore thousands of retailers will be keen to connect to our platform.
DealIn also uses AI-based predictive analytics, which allows to configure the rewards and actions for each particular business to address its unique target audience and achieve the highest return on investment from every dollar spent on the rewards.
TOKENS — DLN:
Internal DealIn tokens are called DLN and comply with the ERC20 standard. DLN is an internal
currency and is used to conduct all operations within the DealIn ecosystem.
Customers of the stores participating in DealIn Network will receive DLN as a cash-back —
a certain configurable amount or percent on their purchases, purchases of the friends that they
referred to the store, shares and likes in social networks, completing their miles and other actions. The cash-back will be credited to the customer’s automatically created crypto-wallet connected to the merchant store via DealIn plugin.
DLN can be redeemed at the same merchant store or with the other DealIn participating merchants via crypto-wallet connected to the participating merchants. customers will appreciate the opportunity, because they get a liquid crypto-currency instead of loyalty points.
The customers can also buy DLN at an exchange.
The private key to a token holder’s DLN can be stored on the wallet provided by DealIn network
platform, on the standard Ethereum wallet, or on any wallet supporting the ERC20.
The value of the DealIn token is determined at the open crypto-currency exchanges. The tokens
can be exchanged to ETH, Bitcoin or fiat currencies. The token is accepted by all merchants that use the loyalty platform and other partners of DealIn Network.
The DLN token’s exchange rate may grow because of the limited initial issuance of 3 billion tokens and the demand for tokens from the growing number of retailers joining the platform exceeding the supply from the customers who redeem the tokens for purchases or sell them at the exchange, which will create an ascending path of least resistance.
MARKET OVERVIEW
DealIn is designed for all types of retailers, but our sweet spot is e-commerce and offline retailers because they willingly adopt such services and are easy to scale. The e-commerce and retail market has grown consistently every year, and, according to Statista data, the market will increase more than 70% in the US over the next five years (from $360 billion in 2016 to $638 billion in 2022).
The rapid growth of e-commerce, the automation of purchase processes and delivery have made this
market extremely competitive. Today customers are more price sensitive, expect more from brands, and compare prices on a regular basis. Customer loyalty, measured in repeat purchases and referrals, is the key driver of profitability for online businesses, even more so than for offline companies. User acquisition today is one of the most costly activities of any retailer. Statistics say that the average conversion of traffic into purchases in e-commerce comes to 3%, however the real figures are 1% and less.
Businesses spend an increasing amount of resources wrestling for customers’ attention, and
this is only half the task: they also have to retain their attention. Studies show that acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one. And customers are also easily switching brands, particularly when the competition is a click away. So retailers must invest in their customers’ loyalty. Lots of data show that loyal customers stay longer, buy more and more often, cost less to process, help in price competition, tell their friends about their experiences, and provide valuable feedback.
LOYALTY MANAGEMENT SYSTEMS
Loyalty systems in retail are designed to reward customers for their past purchases or other useful actions and to provide them with incentives for making future purchases. A rewards program enables activation, retention, up-selling and referrals, along with providing strong value offer to the customer.
A typical loyalty management system is comprised of operational parameters, such as transaction types, program design and funding options. It further includes value parameters such as redemption options, redemption thresholds, and earnings rates.
And businesses are actively adopting loyalty programs:
63.7% of small businesses plan on using a customer loyalty program in 2016 (Belly)
38% of executives have a dedicated budget for customer experience (Leapfrog Marketing Institute)
The market for loyalty programs is growing and will reach $4 billion by 2020 ("Loyalty Management Market” report by MarketsAndMarkets). There’s approximately another $1 billion in digital gift cards, and at least $11 billion in referral solutions. On top of that, more than $50 billion loyalty points are issued globally each year. According to a Deloitte report, enrollment in loyalty programs across various industries reached 3.3 billion memberships in 2015 and has more than tripled since 2000. Despite this rapid growth, customer loyalty rewards programs are not realizing their full potential.
According to the 2016 Bond Loyalty Report, North American consumers belong to 13.4 loyalty
programs on average, but are only active in about half of those. Moreover, only 44 percent of
consumers said they are “very satisfied” with the loyalty program experiences.
MAJOR PROBLEMS OF LOYALTY REWARD SYSTEMS
Encouraging loyalty is not that easy. A lot of customer issues can result in problems for loyalty
rewards providers, including:
Account inactivity
With many loyalty programs, the need to take additional actions and non-transparent reward schemes are perceived negatively by customers and lead to adoption decrease and customer inactivity. According to 3Cinteractive, 70% of consumers do not sign up for a loyalty program due to the inconvenience and time required to complete registration.Low redemption rates
According to The 2016 Bond Loyalty Report, the percentage of customers who were active members was only at 50 percent. Out of these members, 20% never redeemed their received bonuses and rewards. Also, according to this report, loyalty and rewards program members who do not make redemptions are 2.7 times more likely to defect from one program and join another.Low client retention
Existing loyalty programs give insufficient motivation to encourage repeat purchases. According to COLLOQUY “Customer loyalty 2015 & beyond report”, the top two reasons why consumers stop participating in a loyalty program are: the program did not provide offers that were of interest (56%), and it was too hard to earn points for rewards (54%).Increased costs for customer service
Retailers who want to set up their own in-house loyalty program need to not only invest time, money and effort, but to also arrange a solid customer support service specifically aimed at the loyalty program, which incurs training and sometimes hiring employees, the implementation of internal practices and procedures, reporting, and analysis. The more sophisticated the loyalty program rules are, the higher the cost of customer service.Low motivation by offered rewards
According to CardLinx’s 2016 Card-Linking Industry Survey, 64% of consumers prefer cash-back
payments as a part of rewards, and only 12% prefer programs connected with the accumulation of
bonuses, points or miles.
At the same time, loyalty programs are still one of the most effective solutions to generate more
revenue from existing customers.
The outlined problems could be solved by an integrated loyalty system, which would provide
customers with convenient tools to earn rewards and redeem them for valuable purchases.
With the emergence of blockchain technology, creating such a system has become possible. Our
hypothesis that the new approach to rewards and loyalty with the use of blockchain and smart
contracts can deliver synergy, is confirmed by the recent blockchain experiments of Deloitte, IBM,
China Union Pay, MasterCard, VISA and many others.
VALUE PROPOSITION
DealIn is a B2B2C rewards and loyalty solution built using blockchain and smart contract
technology. The platform enables merchants to reward shoppers with DealIn tokens (DLN, an
ERC20 token) for their and their friends’ purchases and other valuable actions with configurable
rewards. AI-based analytics allows to set up and adjust the rewards in order to achieve the best
conversion and loyalty, which results in increased sales. The decentralized rewards management on blockchain makes the platform unique and delivers great value to all platform members and their
customers:
- for the retailers – a premium blockchain loyalty management system with value of $300-$3000 per month for free.
- for the customers – crypto-currency rewards, which they can turn into real money or redeem for purchases and which do not expire and tend to go up in price.
Since DealIn is a decentralized system, its solutions are easily scalable and have no
geographical or platform limitations or restrictions. In fact, the plug-in can be downloaded from the app stores of e-commerce platforms and web-site builders and any retailer can be connected to DealIn in a matter of a few minutes.
HOW DOES DEALIN SOLVE THE MAJOR PROBLEMS OF LOYALTY SYSTEMS?
- Account inactivity
DealIn consolidates retailers in the integrated open-loop loyalty system and provides a simple
and convenient user interface with a customer-centric approach. Every individual user will have a single wallet, accessible from the website of any participating merchant, or from a web or mobile app. There is no need to register in a standalone loyalty program of each retailer, and the acquired tokens can be redeemed with any other network member.
Low redemption rates
Unlike the existing loyalty systems that give points, DealIn transfers value into tokens and credits them directly to the customer’s wallet. The value of the rewards denominated in crypto-currency is poised to go up along with the growth of the crypto-economy and the market share of the blockchain based services and infrastructure, which will make customers want to spend their tokens for additional purchases. The users will also be receiving regular reports and offers from the stores where they made their purchases, which will also serve to incentive their further actions.Increased costs for customer service
Merchants can use the DealIn platform for free. It can be easily installed and set up and do
not require any special technical knowledge or skills.
The work flow around receiving and spending DealIn tokens will be standard for participating customers, and questions will be handled by the DealIn service operator, who provides technical guidance, support and quality assurance.Low motivation by offered rewards
Customers will perceive the received crypto-currency as being “for free”. It will spur their additional interest in cryptocurrencies and initiate demand for valuable rewards from the places they will shop at.
DEALIN BENEFITS YOU CANT RESIST
New customer experience
The DealIn decentralized loyalty system creates a unique, user-friendly customer experience:
- The regular customer’s dashboard with loyalty points turns into a full-fledged crypto-wallet linked to hundreds of merchants. Creation requires only a simple registration with a Facebook account, email or phone number. It can be used as a regular wallet for the storing of DealIn crypto- currency, as well as other currencies (Ethereum, Bitcoin, etc.), growing in value of the received rewards (connected with the growth of token).
-The bonuses in the form of DLN from different merchants are accumulated in one customer’s
account, which is connected to the entire DealIn Network.
The tokens can be redeemed with any merchant within the DealIn Network and the
network’s partners that can promote their business with additional bonuses and discounts for the DLN token holders.Maximum flexibility and security of the rewards: tokens unlike points don’t expire; they can’t get lost, or cease to exist if the merchant goes out of business.
An easy way to make purchases in cryptocurrency: Ethereum and Bitcoin can be credited to the customer’s DealIn account and be used as payment with DealIn participating
merchants.The token’s value is set for appreciation due to the increasing demand from retailers and the
general prevailing bull market nature of crypto-markets right now.
ADVANTAGES TO RETAILERS
The retailers connected to the DealIn Network acquire new marketing tools and increase
customer loyalty:
Free, but powerful and flexible loyalty program for any retailer, brand or service.
Unique opportunity to reward customers and pander to cryptocurrency enthusiasts wants.
Great chance to stand out among competition and promote a brand or a store.
Outstanding value for the customers: DealIn’s business model suggests constant
appreciation of DLN. (When customers hold DLN received as a reward from a store, they may see their value go up over the course of time).Seamless exchange of DLN into Bitcoin, Ether and any other crypto-currency right in the user’s wallet on merchants’ websites, or on any other wallet or exchange.
Amazing incentive for customers when their reward amount grows, enabling the merchants to
communicate good news and attract a lot of repeat business.Cross-redemption of DLN: users can redeem DealIn Tokens with the member merchants, or
any other participating operator. Something, which will make them feel valued much more than
when receiving standard points.
Platform, ecosystem and community
All merchants get access to the AI data analysis system that we call DLNRecommendations that
automatically recommends the actions and rewards, which aims at offering the customers various actions and rewards incentively the most productive behavior of the customers for every particular merchant.
The DealIn Network is an ecosystem, which is beneficial to all participants, including customers
and retailers. Each retailer connecting to the network increases both their value, and the overall value of the network.
The ecosystem participants benefit from significantly cutting down their expenses on loyalty
management. They also get access to a top-notch rewards and loyalty system free of charge,
something which was previously only affordable for large players.
DealIn promotes members of its community in every possible way: by exchanging the best
practices, by using the platform, for starting advertising campaigns, and by developing new
applications. The DealIn community will not only promote the rapid growth of participating
businesses, but also give a voice to its members on the future of the platform.
HOW IT WORKS
- The retailers connect to the DealIn loyalty system by installing the ready-made DealIn
App or by integrating it with their own loyalty system. - This solution rewards customers with DLN for their and their friends’ purchases as well as other actions. The module performs all the required token processing through the DealIn platform.
- The value of DLN may appreciate because of the limited initial issuance of 3 billion tokens and the constant leading demand for tokens from the growing number of retailers joining the platform.
- The probable appreciation of DLN encourages customers to save their tokens instead of
redeeming them for purchases, also reducing the amount of free-floating tokens.
USER EXPERIENCE
The following workflow illustrates the simple steps users will need to take in order to earn
Tokens by completing their purchase at the DealIn Network’s member merchant.
A customer makes a purchase in an online or via the mobile app store, which is connected to the DealIn module and sees the reward they can earn for every item they buy in the store.
They register through a social network, email or phone.
The customer sees confirmation of their DLN reward after the completion of their miles or check-in.
The customer also sees confirmation of their DLN reward after the completion of their instant purchase.
They also have easy access to the their wallet on the mobile app that indicate token reward from different merchant store.
Each customer registered in the loyalty system of the DealIn Network automatically receives a crypto-wallet with the unique Ethereum-address. This can be used for the receiving and sending of Ether and any other ERC20 tokens, and to serve as payment for goods or services of this or any other retailer in the DealIn Network.
If needed, tokens can be sent to any Ethereum compatible wallet.
A confirmation message regarding the successful transfer of DLN is shown on the screen and sent to the user’s email, if provided.
STEPS TO REDEEM
DealIn Tokens are also easy to redeem. A customer will just need to mark how many DLN he or
she wants to spend on the purchase, and the order amount will be reduced depending on the current
market rate of DLN. A special smart contract will be introduced which will serve as a middle ware
between the shop and customer in this scenario. It will hold the customer’s DLN until a full fiat currency payment is received, then it will transfer DLN to the shop. If the full payment is not received in the certain time period, it will transfer DLN back to the customer and notify the shop about this event.
If the customer wants to top up DLN at his DealIn Network, he can transfer Ether or any ERC-20
tokens from his Ethereum wallet to his DealIn Wallet and then use Liquidity smart contract to
exchange Ether or tokens to DLN.
Need more info? let's talk.