Blockchain-Based Loyalty Rewards Foster Brand-Customer Connection, Accelerate Web3 Adoption — Gennady Volchek

Common loyalty applications can function potent instruments, not solely forging a direct hyperlink between a model and its customers but in addition influencing the latter’s procuring behaviour, Gennady Volchek, the CEO of the loyalty rewards app Shping, has stated. Nevertheless, by harnessing the facility of blockchain and cryptocurrency, these loyalty applications empower manufacturers to attach with clients, no matter their location.

Common Loyalty Rewards to Drive Web3 Adoption

Volchek argues {that a} loyalty program, when not depending on restricted financial programs, allows manufacturers to have interaction with unbanked audiences or clients who’re excluded from the formal financial system. Moreover, the borderless nature of digital belongings permits them to function an alternative choice to fiat cash or present playing cards, eliminating the necessity to adhere to various redemption mechanisms throughout completely different jurisdictions.

When discussing the potential position of common loyalty rewards in accelerating the adoption of Web3, Volchek stated the purpose shouldn’t be to compel customers to understand the underlying know-how. As an alternative, the target ought to be to assist customers acknowledge the tangible advantages of Web3. Volchek argued that common loyalty rewards might be the software to realize this.

In the meantime, in his written solutions despatched by way of Telegram, the CEO additionally touched on the influence of a common loyalty program on a model’s finances. Beneath are Volchek’s solutions to all of the questions.

Bitcoin.com Information (BCN): What are common loyalty applications and which ache factors do they deal with for customers?

Gennady Volchek (GV): Our common rewards program represents a major shift from the standard retail reward programs we’re accustomed to. Sometimes, rewards come from the shops themselves, they usually’re fairly generic – you purchase one thing, you get a reward no matter what you purchase so long as you store in that particular retailer. However right here’s the factor: this leaves the precise model, the one which made the product, kinda out of the loop. Regardless of being a vital a part of the method, manufacturers usually don’t get that direct reference to customers.

Shping’s common rewards program cuts out the middlemen, making a direct hyperlink between buyers and the manufacturers that make the merchandise. Even for those who’re shopping for by a 3rd occasion, the expertise shifts to a direct interplay with the model. It’s a game-changer, ensuring manufacturers are extra related with customers, and influencing procuring behaviour in an entire new means.

Furthermore, the singular nature of a common rewards program offers a definite benefit. Whereas buyers respect the advantages of rewards applications, managing a number of applications with various phrases, redemption strategies, and guidelines will be overwhelming. A single rewards program that comes with purchases throughout all manufacturers mitigates this problem, enabling buyers to take part in a number of rewards applications seamlessly by a single app. This not solely simplifies the consumer’s expertise but in addition enhances their potential to have interaction with numerous manufacturers effortlessly inside a unified platform.

BCN: Are you able to speak concerning the position of blockchain know-how in common reward applications? Additionally, is there a motive why platforms like yours selected to leverage cryptocurrency as a token of rewards as an alternative of conventional cash?

GV: There are compelling causes behind our option to utilise a blockchain utility token, generally often known as a cryptocurrency, because the cornerstone of our rewards system. Firstly, envisioning our platform as actually common, we intention to cater to buyers worldwide. Recognising that almost 2 billion individuals stay unbanked, relying solely on fiat foreign money presents a major limitation.

In at this time’s globalised market, the place even smaller manufacturers boast world distribution, its important for us to have the ability to let a model in Australia seamlessly reward somebody in Africa for buying their product or contributing a evaluation. This transaction could be exceptionally difficult, if not not possible if we have been tethered to native financial programs or reliant on completely different redemption mechanisms equivalent to present playing cards throughout every of the jurisdictions.

We’ve realised from the very begin that we have to develop our personal sensible contract and incorporate particular applied sciences and capabilities to satisfy the varied wants of our future world consumer base. This strategic strategy has led us to create our personal actually common token of reward – the shping coin.

BCN: Do you consider that making a bridge between manufacturers and customers will speed up Web3 adoption and why would this be a useful gizmo for non-crypto customers to find out about Web3?

GV: There are quite a few buzzwords and acronyms like defi, Web3, and Dapps, which could not maintain a lot that means for the final particular person. The mainstream adoption of such applied sciences usually occurs seamlessly when customers aren’t even conscious of the underlying know-how, however reasonably, they acknowledge the tangible advantages it brings. Reflecting on previous experiences, such because the adoption of Skype, we didn’t embrace it due to its VOIP know-how, however as a result of it allowed us to make free calls. I consider that the identical precept applies to the adoption of Web3 know-how.

As extra customers notice the facility of taking management over their first-party knowledge, being able to share it in a managed setting, and being rewarded for it, whereas concurrently enabling manufacturers to personalize each interplay with their buyers, the intrinsic worth created turns into a driving drive for the widespread adoption of this underlying know-how.

BCN: Loyalty applications are stated to be extra than simply reward factors or cash. For manufacturers, it’s additionally a software for accumulating first-party knowledge, nurturing buyer relationships, and influencing procuring habits. Why would manufacturers select to work with Shping to grow to be a part of your common reward applications?

GV: Manufacturers, significantly these with third-party distribution, depend on retailers to acquire a few of the first-party knowledge that retailers acquire by operating their very own loyalty applications. Because the manufacturers themselves lack a direct reference to buyers and are unable to supply any loyalty applications, Shping, for the primary time, permits manufacturers to attach instantly with their customers and run their very own loyalty and rewards applications, bringing the good thing about getting access to first-party knowledge.

BCN: The place does the cash to reward clients for his or her engagement and loyalty come from? Additionally, how do common rewards applications like yours have an effect on a model’s advertising finances?

GV: The quick reply is that rewards are funded by manufacturers. For instance, historically, if a model desires buyers to see their new video explaining the worth of their product, they might arrange a marketing campaign on a social media platform, aiming to insert that video into customers’ timelines. If the video is watched, the model will probably be invoiced for the supply of that content material.

Within the Shping world, buyers would see that video on the product web page inside Shping App and would earn rewards in the event that they select to look at it. As you’ll be able to see, the model would pay the patron instantly for his or her engagement with that video, as an alternative of paying the social media platform. Reducing out the intermediary for manufacturers might imply decreasing their advertising prices by greater than 70%, as rewards paid to buyers are considerably lower than the price of video views on social media platforms.

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