Crypto currencies are attempting to revolutionise many different facets of business and, with the launch of LoyalCoin, loyalty programs look set to undergo the blockchain treatment.
LoyalCoin (LYL) is hoping to replace traditional, usually disparate, customer loyalty programs with a flexible, fully transferable token that can be used to redeem rewards from any participating brand.
The company behind the new platform, Appsolutely, hopes that its system will create a more open ecosystem for customer loyalty that strengthens relationships between brands and their customers. But in particular this is about improving the experience for the customer.
Loyalty programs have been in place for decades. Everything from the coffee stamp cards to frequent flyer programs have been used to attempt to generate return customers. The latter has indeed become a cash cow for airlines with some airlines revealing that they actually make more money selling reward points to banks than they do selling seats.
But with the exception of some airlines, many customer loyalty and reward systems are cumbersome and often don’t result in a benefit for either the customer or the business.
Looking into LoyalCoin in more detail
Appsolutely, formed in 2013 in the Philippines, has launched digital platforms and mobile apps that have enabled companies of all sizes, including some with top global brands, to rapidly expand market share and accelerate growth by providing richer, more satisfying customer experiences through loyalty and rewards programs.
Building on its expertise in loyalty and rewards programs, the company has turned to blockchain technology as the backbone and the LoyalCoin digital asset as the medium of exchange.
With these innovations, the company hopes to eliminate existing limitations that are abundant with existing loyalty programs, such as public confusion about the different mechanics of each loyalty program, difficulties in points exchange, lack of user engagement, and more.
The launch of the LoyalCoin
LoyalCoin is currently undergoing it’s ICO (similar to an IPO but for cypto coins), which is due to end in mid February. At the time of writing this, the company has sold an impressive 3bn of its coins with a further 1.7bn remaining.
The company has released a whitepaper about the ICO, which details the company’s track record and plans for the platform. With existing clients such as TGI Fridays and Starbucks, the company is hopeful it can revolutionise the loyalty market.
As summarised the whitepaper: ‘The current loyalty economy has coordination problems with unrealized rewards, and customers are desiring more flexibility and monetary benefits. In The Loyalty Economy of the future, customers need to get what they want, and pain points must be removed.’