Loyalty and cashback programs have long been the go-to choice for businesses to reward customers.
This is partly due to the fact that it’s well-known among today’s consumers but more importantly, it helps to boost customer loyalty and trust which are two major factors in generating revenue.
The problem, however, lies in how loyalty programs are implemented. Loyalty programs are not easy to setup and they can become very expensive especially for small businesses. Besides, having a loyalty program does not guarantee a business good results as customers may not accept it as well as retailers expect. For instance, many loyalty programs are criticized for their difficulty in earning points which leads to lesser customer loyalty and trust—things you definitely do not want in a business.
Recently, more and more innovative businesses are starting to use cryptocurrencies and the blockchain in loyalty programs as an alternative. This presents a solution to the inherent problems in loyalty programs but in order for it to work properly, an efficient system must be in place to facilitate every process from start to finish.
BitRewards is a blockchain-based loyalty and rewards program for businesses worldwide. What makes BitRewards unique is that participating businesses use the platform to reward customers with cryptocurrencies instead of other alternatives. As mentioned earlier, all kinds of businesses are welcome and since everything is digital, business owners can easily scale their BitRewards loyalty program along with the growth of their business.
BitRewards is based on GIFTD, a motivational marketing SaaS for SMEs that has been (and still is) on the market for over 5 years. GIFTD was extremely successful and effective in the market, with participating small and medium-sized businesses enjoying a 17% increase in revenue on average thanks to the platform’s value proposition.
The same team that built GIFTD is also the team behind BitRewards; led by Alex Egorov, the CEO of BitRewards, and Alexander Nevidimov, the CTO of the platform, BitRewards aims to provide retailers the ability to setup an easy blockchain-based loyalty program to help increase revenue and customer loyalty.
To add to the credibility of the platform, BitRewards is highly rated across the board with a 9.0 rating from ICOrating and a similarly excellent 4.5 (out of 5) rating from ICOBench. The platform has also successfully reached its soft cap of $3,000,000 before the main token sale even started, showing the confidence and trust of investors in the platform.
BitRewards also recently announced partnerships with fellow blockchain startups Mark.Space, a 3D/VR blockchain ecosystem, and AdHive, an AI-powered influencer marketing platform, to further benefit users of the platform.
The idea behind how BitRewards work is simple. Customers of online stores participating in the BitRewards network are rewarded with BIT, the platform’s official cryptocurrency, as a cashback for meaningful actions decided by the stores themselves.
For example, customers may receive BIT based on a percentage of the total amount spent in an online store transaction. Customers can also receive BIT for referral purchases or even for social media metrics such as shares or likes.
To ensure that customers receive their BIT properly, each customer will have their own cryptocurrency wallet to store the received BIT along with a mobile app and other perks to benefit the customer as much as possible. Customers that shop at other participating stores do not need to have separate wallets for each store as BIT received from all partnered stores are stored in the same wallet automatically.
Like any other cryptocurrency, BIT can be exchanged for other cryptocurrencies or exchanged to fiat (cash) if a customer does not plan to hold it.
BIT can also be redeemed at the same online store or used at other online stores participating in the BitRewards network. At the same time, a customer’s BIT balance can be connected to a bank debit card which allows the customer to spend BIT like fiat, a feature not available in traditional point-based loyalty programs.
For retailers, the task of setting up BitRewards may sound difficult especially for business owners who are not tech-savvy. Thankfully, partnering with BitRewards is as simple as installing an extension to connect to the network. Everything else after that is automatically done by the platform for businesses to enjoy the benefits of BitRewards.
Because of how the loyalty program works, the incentives for customers to spend and stay loyal to a store increases over time especially if the value of BIT rises. Since customers are rewarded in BIT which can be exchanged to real money or other cryptocurrencies, customer loyalty and trust will also increase. This leads to greater revenue for participating stores and greater rewards for customers—a win-win solution.
Another fact to consider is that other loyalty programs in the market charge at least $200 per month with the higher end ones costing up to 4 or 5 digits per month. For SMEs, these numbers add up over the year and make it very expensive to maintain. In BitRewards, however, retailers don’t have to pay a single cent to set up the blockchain loyalty program. Retailers only need to buy BIT to fund the capital of the loyalty program but that cost is easily recovered by the increased customer loyalty and increased revenue from using the network.
BitRewards also uses AI in its system to automatically configure the program’s functions to meet the unique needs of each business. This will help businesses to adapt its loyalty programs to their own unique target audience without requiring timely and expensive changes, contributing to a greater ROI compared to other loyalty programs.
Businesses also do not need to worry about overhauling their existing websites or systems as BitRewards integrates flawlessly with popular platforms such as Shopify, Magento, and WordPress in addition to other lesser-known platforms. The API provided by BitRewards can also be easily integrated into other platforms by developers if needed.
At this point in time, BitRewards already has more than 80 merchants registered on the platform. These merchants are currently being verified and guided through a pilot program to launch BitReward’s first batch of partner stores.
As mentioned earlier, earning and spending BIT in partner stores is incredibly simple. All customers have to do is to register on the platform, they will then receive their own cryptocurrency wallets which can store BIT to be redeemed at participating online stores or used like regular debit cards.
A common complaint of traditional loyalty programs is the sheer number of accounts or cards needed to serve each program. For instance, you would need a card to receive loyalty rewards from company A, another card for company B, and so on. With BitRewards, you only need one digital wallet to store and receive BIT from all participating stores and as mentioned earlier, BIT can also be used in all BitRewards-connected stores without any problems.
As the value of BIT rises, the value of the customers’ wallets also rises which means that customers earn more the more they spend or as time goes on. This is stark in contrast to traditional loyalty programs which often have little to no value, nor do they appreciate over time.
The details for BitRewards’ ICO is listed below:
Token name: BIT
Token base: Ethereum (ERC-20)
Token supply: 1,280,000,000 (2,000,000,000 total volume)
Token sale duration: 25th December, 2017 – 30th April, 2018
Token sale target: $3,000,000 (soft cap) | $15,000,000 (hard cap)
Token exchange rate: 1 BIT = 0.00003472 ETH