My design based on original qiibee logo design
What are Loyalty Programs?
In order to maximize the benefits of a thing, you have to fully understand it's purpose.
Loyalty programs are initiated by merchants to encourage customers return to their shops by using incentives. It is a form of marketing strategy. The incentives usually revolve around discount on purchases and free products, the features of the loyalty program however vary with the business type.
These loyalty programs issue out what is called a “loyalty card” to their customers as a reward for patronizing the business, this card identifies them as members of the loyalty program of the business. In order to obtain this card, the customer has to relinquish some personal information to the company's database.
Loyalty programs thus performs two basic functions:
- They reward customers for their loyalty to the brand.
- It provides the company with customer data.
The latter function serves as part of the company's marketing research and provides extra information such as; the customer's favorite item, products that are usually purchased together, basically the shopping habits of customers.
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With the advent of the internet and mobile devices, most companies have moved away from the traditional magnetic and punch cards to mobile online programs like a loyalty app that connects a customer to a brand's product/service.
The loyalty app makes brand patronage a whole lot easier, better and faster for the customer and it could build true brand loyalty.
Ladies and gentlemen, I present to you a team of wonderful individuals committed to establishing enabling loyalty programs suitable and beneficial to both brands and customers alike. Meet QUIIBEE!
What is Quiibee?
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Quibee is a decentralized loyalty ecosystem that is based on the etherum blockchain. They are bringing about a revolution to the loyalty market by offering a blockchain-based loyalty ecosystem on which every brand can develop their own loyalty applications. The idea here is to get brands to set up their loyalty apps on a single platform thus making brand-brand, brand-customer and customer-customer engagement possible.
Problems of Loyalty Programs
A problem cannot be solved, unless it is first identified.
For the Business Owners:
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1. It can be cost prohibitive
Loyalty programs when performed efficiently can help to build a strong customer base as well as provide data to the company for marketing research. However it could also cost so much that you may not be able to afford it as well as being really complex to handle on your own.
In light of this, many businesses may find it difficult to justify the cost and thus rely on their product's superiority to enact brand loyalty.
2. Low levels of engagement
It is no secret that customer engagement and loyalty are indeed two sides of the same coin. This means that a customer's level of engagement could well be equivalent to the customer's level of loyalty to the brand. Companies usually do not know how to make their campaigns relevant to their customers and the result is a low engagement level from the customer. A customer may even obtain loyalty points but would fail to redeem them.
3. Deferred Revenue
Deferred revenue is not actual revenue, rather it is an amount that is received by a company in advance of earning it. At the time of making the company's financial statements, amounts that have not been earned are reported as liabilities. The company therefore has to estimate correctly the redemption value of their loyalty points of which variations could have significant influence on their respective year Profit and Loss.
4. Security
Due to the large database of customer information attributed to the company on establishment of a loyalty program, they are charged with the responsibility of user information protection as the threat of a data breach is ever looming. Complex data protection requirements and guidelines make it more difficult to manage the security risk.
For the Customers
1. Highly Fragmented Market
Loyal customers are having a hard time in today's loyalty market due to the large number of loyalty programs that are constantly in competition with themselves. This makes it difficult for customers to select the program that is most suitable to them. Customers also face a personal barrier to sign up and use these programs.
2. Client Lock-in
Most loyalty programs do not provide an option for exchange in such a way that a customer cannot trade his loyalty bonus for any item but must be streamlined to what he is offered. Customers have to rely on the brand to state how much and what exactly they can receive for their collected points.
3. No monetary value
The loyalty points given to the customer for his patronage and loyalty to the brand does not have any value outside of that company or brand. The customer does not have the option of making an exchange of loyalty points for their monetary worth.
Okay...we have stated quite a number of problems here for both brand and customers alike. Now, imagine that these problems no longer existed, loyalty programs would be a lot more fun and rewarding to both parties. Let's take a look at how qiibee proposes to resolve these issues.
The Qiibee solution
The Qiibee ecosystem is built on two pillars; the qiibee app and the developer kit, each having their individual properties. The qiibee app allows customers to manage all of the loyalty programs that they are engaged in, while the developer kit enables the brand to set up loyalty programs on the blockchain whilst retaining control over user interface and program configuration.
The qiibee solution will be viewed with respect to the two major parties involved in loyalty programs; the brand and the customer.
Brand Perspective:
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1. Plug n' Play:
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Picture from qiibee whitepaper
The companies retain full control over their loyalty program and decide what the individual app's interface will look like, they choose how they wish to reward their loyal customers and the redemption process configuration. The brand's marketing department will set the budget for the loyalty program, the qiibee platform then creates the brand tokens and sends them to the brand.
2. Increased engagement level:
Fluctuation of the brand's token value in terms of FIAT will undoubtedly increase customer engagement as the customers will be interested in the value of the token and will monitor prices to sell or exchange at a time that is suitable for them. Also, new loyalty programs can be boosted by tapping into the large loyalty community existing on the qiibee ecosystem.
3. Elimination of Deferred Revenue
With the use of brand tokens, there won't be need for virtual value in the way of promises made from the company to be delivered at a later date. The tokens have a real value and hence there will be no cases of deferred revenue.
4. Cost and Security
The problem of prohibitive cost is eliminated as the costs of setting up a loyalty program on the qiibee ecosystem is very low. Also, customer targeting, a service option offered by the platform will boost campaign efficiency. Security complications are greatly minimized as customers will manage their own wallets.
Customer Perspective
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1. Multiple Loyalty Tokens
Customers have access to various loyalty programs on the Qiibee ecosystem and as such can collect tokens from all of their favorite brands.
2. Loyalty Token Transactions
Customers are allowed to trade their tokens with other clients in the ecosystem and also participate in redemption offers of several brands.
3. Real outside value
The brand tokens will have a real value outside of the brand as all tokens are cryptocurrencies tied to the qiibee token.
4. Cash out option
Customers have the option of selling loyalty tokens for other cryptocurrencies or FIAT via third party integrations.
Here's a list of sites to visit for additional information:
Qiibee Website
Qiibee Whitepaper
Qiibee Telegram
Qiibee Twitter
Qiibee Facebook
Qiibee Instagram
Qiibee LInkedin
Qiibee Google plus
Qiibee's Airdrop:
You can partake in the qiibee airdrop by:
- visiting the website here
- @bountyworks, here
Joining using the second option will guarantee you 50 bonus tokens! who doesn't love a good bonus?
This article is in response to a contest by @originalworks. Feel free to visit the post and make your own entry.
Thanks for stopping by!
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