Loyalty programs are designed to reward customers for their past purchases or other actions and to incentivize them to make more purchases.
One could say that this is an ideal scheme for increasing the profit of retailers. However, in real life it doesn’t work this way. A recent study by Colloquy shows that approximately 56% of programs do not give users real benefits from purchases, while 54% are organized so poorly that it’s incredibly difficult to earn points with them.
BitRewards solves these problems for loyalty management plans, as it more closely aligns the interests of merchants and shoppers. It’s a B2B2C platform that enables merchants to reward shoppers with BIT tokens (ERC-20 compliant) for their, and their friends’, purchases and other actions they may take that align with rewards. The decentralized rewards management on blockchain technology makes the platform unique and delivers terrific value to all platform members and their customers.
The platform represents a clear and perceptible value for retailers, their customers and loyalty software developers and vendors. The merchants receive a premium blockchain loyalty management system for free, thus saving thousands of dollars every month, whereas the shoppers are rewarded with liquid cryptocurrency that can be exchanged for fiat money or redeemed for purchases. As for developers, they can easily deploy a blockchain loyalty solution on BitRewards platform using open API and documentation.
Tesla among loyalty management vehicles
What is the secret of the success of Tesla cars?
It’s about user experience. The Model S reaches a speed of 100 km / h in 2.5 seconds – it’s so fast that the first trip causes an incredible rush of happy neurochemicals. This is the kind of experience, as compared with other loyalty programs, BitRewards offers.
The rewards for customers, in the form of BIT tokens from different merchants, are accumulated in a customer’s account, which is connected to the entire BitRewards Network. The tokens can be redeemed with any merchant within the BitRewards Network and the network’s partners that can promote their business with additional bonuses and discounts for the BIT token holders.
A customer crypto wallet’s BIT balance will also be connected to the bank debit plastic or virtual card, which users can spend just as if they used their regular credit or debit cards. BIT tokens, unlike points, don’t expire; they cannot be lost, or cease to exist if the merchant goes out of business. The token’s demand and value is expected to appreciate, due to an increasing interest from retailers that receive world-class software for free.
AI-based recommendations system
The recommendation system is an essential part of the loyalty program, because its tailored product/service recommendations encourage people to purchase more. It is impossible to build a solid advisory system without a vast amount of data, and this is a problem for SMBs, as they do not have enough traffic and sales to accumulate such an amount. That’s why BitRewards develops and embeds into the ecosystem the first decentralized recommendation system – BitRecommendations.
The system gives product recommendations – look-alike items, as well as recommendations for rewards. Training of BitRecommendations is carried out using the data of thousands of stores, which will ensure the high quality of recommendations. All data received from the stores is stored on a decentralized IPFS file system. Metadata, including the rating of data quality, is stored on the Ethereum blockchain. This makes the system immutable and trustless – if BitRecommendations ceases to work, with the support of BitRewards DAO a new development team will be hired and a new system will be created using the accumulated data.
Action plan for the future
The full-functioning scalable rewards, and loyalty platform with the retailers’ and the users’ crypto wallet tied to the loyalty program of BitRewards, will be launched in Q2 of 2018. Much of the work will be dedicated to integrations with partners and the deployment of secure smart contracts.
BitRewards intends to show that the community will support the project – and the best way to prove it is to run a crowdsale. The public pre-sale started on January 12, 2018 and the main token sale will start on April 1st and end on May 1st. The total volume of BIT tokens will be up to 2,000,000,000 BITs.
Additional details on the BitRewards token sale are provided on the official website of the project: https://bitrewards.network