Traditionally, loyalty programs seek to reward faithful clients using a point system. To earn points, users have to repeatedly purchase products or services from the same provider. Often, this scheme has a central management, and the points cannot be exchanged for cash.
Token Loyalty noticed these shortcomings in the current system, and came up with a number of solutions. First, their alternative loyalty program is decentralized, meaning that power to build an overlay within the system is devolved to every user. Second, points earned in this scheme are in form of tokens, which can be further converted into money.
Moreover, additional points are acquired for every successful lead into the ecosystem.
The Token Loyalty Ecosystem
This is a network that brings together merchants and customers with the aim of creating a symbiotic relationship between the two groups. It is different from conventional loyalty schemes in that customers get actual money, while merchants profit from lead building. Instead of using points, coupons or codes, this blockchain-based platform uses tokens.
Benefits of the Ecosystem to Customers
- Anonymity – current loyalty programs are built on client's identities. This is done in a bid to learn the shopping trends of different individuals. However, blockchain technology allows for the collection of this data without necessarily acquiring the user's identity, hence it guarantees privacy.
- Decentralization – in old loyalty programs, the merchants have absolute control over the entire system, including the points. The points are often left unused, as they can only be exchanged for a limited number of items, which the user might find undesirable. Contrarily, token-based loyalties can be exchanged for money, a tool no one can turn down.
- Perpetual Validity – in addition to being seriously limited, most coupons, codes and points are often valid for a specific period. On the other hand, tokens remain valid for as long as their market exists, which is many, many years to come.
- Socialization – by being a member of the network, users can interact with millions of people from across the globe.
Benefits of the Ecosystem to Merchants
- Control of costs – it is relatively easy to setup a loyalty scheme within this network, so a significant amount of money goes to your savings account.
- Free loyalty system – upon registration, merchants can create a loyalty program at no extra cost.
- Perpetual validity – similar to the case for consumers, merchant tokens remain valid forever.
- Open/close programs independently – merchants can decide to modify, close or open loyalty campaigns at their own volition.
Token Loyalty ICO
Token Loyalty Operational Guideline
As of now, Token Loyalty is concentrating on ensuring that the crowdsale goes on successfully. Afterwards, the development of information technology infrastructure will become the main agenda, as the platform looks to smoothen its operations by improving their systems.
Once the upgrades are completed, the next step will be aggressive marketing and brand promotion, as well as increasing network coverage.