Businesses and Merchants with loyalty programs are 88% more profitablethan those without. And more customers reported that they are extremely likely to increase their visits to a business if they offer a loyalty rewards.
Loyalty Programs or Loyalty Marketing is a structured approach to rewarding customer actions that includes giving customers incentives for specific actions that benefit the company like discounts, rewards or free merchandise.
These kind of rewards can help increase customer retention rates and the revenue of your business.
It encourages consumers to direct more of their purchases toward a business and less at competitors, prompt customers to make additional purchases and in the end attract new customers.
Why use Cryptocurrency for Loyalty Programs?
The main idea is to replace plastic discount cards or paper vouchers with an easy to use mobile application and allow people to be compensated for their custom at local shops. People can easily purchase more goods, swap it for loyalty coins of other brands or even sell it if there is a demand for it.
But the most important reason is Trust. Unlike Bitcoin with no single authority taking responsibility for it and prices being volatile, loyalty coin will have a single organization backing it, the brand behind the coin.
Let’s take a look at Burger King Russia, which giving customers, who buy the Whopper hamburger, rewards in WhopperCoin tokens stored in a digital wallet. Customers can save the tokens to buy burgers once they’ve collected enough, as well as transfer or trade them online, adding a monetary value and aspect of exchange that most rewards programs don’t include. If you are skeptical when you first heard of WhopperCoin then you will turn into True Believers when you realize that Burger King is behind the coin.
Imagine if there are customized types of cryptocurrencies from your favorite burger joint, soft drink company or chain supermarket around the corner. And the coins can be used to purchase more of the business products or trade them for customized coins from other brands!
The coins can also be multi-branded between merchants or inter-industries, such as when a “Restaurant/Airline” co-branded coins as rewards for customers. The possibility is limitless.
Why Bancor Protocol?
There are a few smart contract platforms focus on loyalty programs but Bancor is the only platform with solution to Creation & Liquidity Problem. Bancor ensures Continuous Liquidity and Asynchronous Price Discovery for Tokens through their Smart Contracts, as they call them: Smart Tokens
Here are a few key advantages of Bancor Protocol:
- Easy to use platform, anyone can create a token without technical knowledge. The Bancor Bot allows anyone to create their own Smart token (Project/Protocol Tokens, ETF, Token Changer or Complementary Currency) without any technical knowledge by simply answering a few questions. You can choose any of these platform to start creating your business reward coins/tokens: Facebook Messenger, Telegram, WeChat & Status.IM
- Continuous Liquidity, when you create reward-coins for your customers it will be instantly liquid.
- No Extra Fees, Other platforms might charge fees for your business but Bancor does not. The only mandatory fees applied by a smart token are the blockchain platform fees (gas) which are relatively low.
- Lower Volatility, this is one of important factors when creating a cryptocurrency for business. A key reason for low volatility is that each transaction is processed like an infinite number of infinitely small ones. Equals less spikes and more gentle curves.
How to use Bancor Protocol?
It is as easy as creating a social media account. The first step is to choose which platform you want to use, whether it is Facebook Messenger, Telegram, WeChat & Status.IM
Let’s choose Facebook Messenger for this step.
Sign up at Bancor Platform using your FB Messenger account and there you will be guided by Bancor Bot.
Bancor Bot will ask you a few questions like the name of your business/community, short description about it, what will be the name of your Business Reward tokens, the token symbol, etc.
At the end you will need to create password for your wallet and voila, it’s done!
Now that your token is active you will need to issue the total amount of your tokens, set the CRR and launch it so that your customers can start using the reward tokens. Please find the complete guide here.
It is obvious that Bancor can help build your Business Loyalty Program in the form of cryptocurrency with less volatility, more liquidity and free of charge.