Loyalty programmes can pose something of a dilemma for businesses. On the one hand, they can be one of the most powerful tools in a retailer’s arsenal, with the potential to dramatically boost revenue (Cap Gemini states that ‘fully engaged’ customers deliver a >23% premium over the average consumer), on the other they can be excessively costly and, when implemented thoughtlessly or incorrectly, can even damage relationships with customers. In the sphere of e-commerce, where the issue of “trust” is a particularly decisive factor, it becomes even more critical that retailers get their loyalty programmes right.
Enter BitRewards, the latest ICO to really catch my attention: a revolutionary new platform that leverages the power of blockchain technology and its own internal cryptocurrency to allow online retailers and service enterprises to create effective loyalty programs - all without any of the large financial or time costs typically associated with the set up and development of a conventional incentive system.
The very first question I tend to ask myself, when I am considering investing in an ICO, before I even bother reading the whitepaper, is “how much is the associated industry worth”? “If successful, how much room does this project have to grow?” In this instance, the global e-commerce market itself was worth an astronomical $1.85 trillion USD in 2017 (and has been growing at an enormous rate of 17% [1]), whilst retailers are currently spending $20 billion per annum on attracting and retaining customers [2], so the outlook here couldn’t be more promising. Crypto is also well and truly knocking on the door of mainstream awareness, and hype levels have been barely dented by the so-called ‘bloodbaths’ of early 2018: enthusiasm at the prospect of participating in anything even remotely ‘blockchain’-related remains higher than ever. This is a particularly favourable context as BitRewards looks to develop and expand their network amongst both consumers and businesses.
So we have a profitable industry, a solid use-case and positive trends, but – with the ICO market blowing up, and hundreds of projects clamouring for your attention – what other factors help make BitRewards stand out from the competition?
1. The Ecosystem is Win-Win for consumers AND retailers
This isn’t one of those projects where you have a clever concept that will appeal to customers but offer no appreciable benefit to businesses, nor one where you have a profitable system for businesses that no ordinary person would dream of buying into: it’s clear to see that BitRewards offers clear solutions to problems on both sides.
Whilst many rewards programmes have customers accrue points whose value is inextricably linked to the fortunes of the company itself, BitRewards will offer tokens that will hold (and, over time acquire) value regardless of whether the individual retailer continues to be solvent or profitable. Customers have the reassurance that they can safely invest their time and efforts in a rewards scheme, even with relatively small or obscure companies, as there is little chance of their balance disappearing or becoming inaccessible (again, this is a positive on both sides). Moreover, in the same way that crypto will gradually phase out the need to carry cash and cards, BitRewards has the additional appeal that customers won’t need to carry around annoying rewards paraphernalia – I mean, come on people, we’re in 2018 – cars are driving themselves, rockets are landing themselves – are we really going to walk around with cardboard stamp cards in our wallets?
Of course, if customers are engaged and happy, retailers will be too as they will benefit from much better client retention – and, what is more, they will be able to access this revolutionary system free of charge, rather than having to pay exorbitant costs buying or developing a conventional system – which seems like something of a business no-brainer.
2. The BitRewards API is highly flexibly and can be incorporated into almost any retail platform
However, the other beauty of BitRewards, is that it’s not just pitched at larger e-commerce enterprises - in fact, smaller, more independent retailers, who are unlikely to have a substantial marketing budget, will also be able to benefit from this powerful resource thanks to BitRewards’ flexible API that makes it easy to implement on virtually any online shopping platform – from Wordpress to PayPal. In fact, BitRewards has sized the market, and has ascertained that this particular demographic - online stores selling consumer goods or services with traffic between 10 to 500 thousand monthly unique users - could represent 100-200 thousand prospective clients. These ‘little guys’ would certainly add up!
3. Blockchain offers powerful benefits in this instance, rather than being a mere gimmick
Whilst there’s no doubt that many ICOs these days are piggy-backing on the hype surrounding blockchain and using it as a ‘buzzword’, rather than a central component of their business, BitRewards is a project where the blockchain is a fundamental, rather than ornamental, component:
Distributed ledgers and blockchain protocols confer clear additional function and value to both the customer and the retailer. As mentioned before, unlike conventional rewards points, which expire over time – cryptocurrency tokens will actually appreciate in value, incentivising customers to participate over longer periods of time and to hold on to their assets. It represents a profound psychological difference. Tokens are also much easier to redeem and exchangeable into Ether (and therefore into almost any liquid asset), rather than being tied frustratingly to a limited range of outlets or vouchers. On the retail side, there is also the scope for leveraging AI-based BitRecommendations: meaningful, crowd-sourced recommendations that will allow businesses to offer their customers a more enjoyable, personalised shopping experience – along with far greater control over the raw data, which means merchants will actually be compiling their own bespoke market research database.
4. They recognise the critical role of community in expanding their network
BitRewards has some impressive marketing strategies in the pipeline to help them start signing up merchants and building their global network. Alongside comprehensive social network marketing and other outbound activities, where they have a proven track reckord, they have a very high conversion rate when it comes to converting clients with their live demonstration (30-50%). They are also adding value by hosting workshops, webinars and events for their participants, as well. In the same way that their clients want engaged customers, BitRewards has clearly recognised the critical value of having engaged clients!
5. The team has a working product and an existing profitable business
The project team have their origins in GIFTD, a platform that has been operating successfully in the rewards and loyalty software market for more than half a decade, with a loyal customer base of 500+ online stores. Rather than abandoning GIFTD, they will continue to develop it to complement BitRewards, which means the company has robust and diversified foundations. Of course, they have subsequently expanded their core team, and they now boast a number of preeminent experts, marketers and lawyers well-versed in blockchain. They are also highly communicative and responsive online, which bodes well for the future.
Therefore, whilst I must stress that this isn’t investment advice and I’m certainly not telling you to go straight out and put all your money into their ICO without a moment’s pause for thought, I do think BitRewards is a promising project in an excellent position right now, and I would urge you to check them out, *Do Your Own Research* and see if you ultimately come to similar conclusions.
However, it comes as no surprise to me that BitRewards is starting to earn the loyalty of a lot of people right now.
For more information, please visit https://bitrewards.network or see the reviews on:
https://icorating.com/analytics/indepth/bitrewards-rating-review/
https://www.trackico.io/ico/bitrewards/
https://icoholder.com/en/bitrewards-17123
[1] Global Ecommerce Report, 2017
[2] BitRewards, https://bitrewards.network , 2018