Updated: Feb 14
On January 9, 2020, Simon Yu, CEO and Co-Founder of StormX discusses with TF Blockchain Seattle his entrepreneurial journey, going from making Korean Tacos from his apartment to building a bitcoin, crypto, and loyalty rewards startup in 2014. Simon discusses how commerce and merchant adoption can be driven by giving rewards and incentivizing users, and then speaks on overall UX and design in blockchain, how what is happening globally effects locally, and opportunities for brands.
The adoption of blockchain is expanding globally and simultaneously bettering the loyalty of customers. Loyalty programs are now a huge industry, worth over $360 billion, with over 16 trillion loyalty points getting issued per year amongst approximately 7.6 billion consumers. What is being emphasized is the massiveness and substantiality of the industry.
Loyalty programs are structured marketing strategies or incentives merchants use to encourage customers to continue shopping or using their services, hence rewarding the loyalty of such customers. Blockchain plays an essential role in this regard.
According to a few studies, Colloquy's study inclusive, an average American is enrolled in at least 18 loyalty programs. However, about half of these loyalty programs are inactive, while 30% of customers do not redeem a point ever.
Nonetheless, we can confidently say that the personalization of this offer is the future of loyalty programs, especially now that the margins for growth are still appreciably large. This translates to the need to establish a personal relationship, one which is an interface of direct communication with the customer. One of such is through social media platforms such as Facebook.
At the moment, attracting a customer to patronize a business for the first time is more expensive than retaining that customer for future business.
Consequently, this has resulted in competition amongst counterparts, as they all struggle to steal customers by introducing advantageous offers. One perfect example of this is Amazon’s Prime membership. Amazon Prime is a subscription package for the most trusted customers of Amazon. And this is one thing that guarantees the advantages and rewards of their members.
Amazon has introduced and implemented a few improvements since its establishment, all in a bid to satisfy and retain customers. And of course, this has resulted in increased sales. Over time, more and more people are enrolling in Amazon’s loyalty programs so they can enjoy the privileges of Amazon Prime too.
Blockchain has the potential of simplifying the administration of loyalty programs. All thanks to its real-time transparency and cost-saving features, which, of course, can be achieved even in the medium term.
For consumers that are shuffling between a few loyalty programs, blockchain may also help in the provision of instant redemption advantages, including the exchange of loyalty points, irrespective of the trading currency, all via a single platform.
According to Deloitte, blockchain technology will also enable secure and instant creation, exchange, and redemption of loyalty points between vendors, industries, and programs, stretched across a non-trusted environment via the use of evidence other than administrators and third parties.
The use of blockchain technology in this regard also allows for the limitation of associated costs when dealing with the entire behind-the-scene processes of these loyalty programs. And consequent to all of these, CoinShare already has its token listed on LAtoken exchange, and has set forth on the path of implementing the creation of loyalty programs for its customers via the use of blockchain.
According to Simon Yu, the CEO and founder of Storm, a gamified microtask platform that creates opportunities for people around the world to earn cryptocurrency rewards, "blockchain technology will be the evolution of cashback systems and/or old points collections, and will allow companies and shops that enter the platform to share their customers in a decentralized, safe, and transparent way."
Overall, the primary goal is to reduce incurred costs while increasing revenues via the creation of a customers' community that can make use of tokens spent in total safety through blockchain technology. A few may even transform these tokens into other cryptocurrencies, or even in fiat currency. In addition, the primary objective of loyalty programs is to retain existing customers and allows the customer and the business to understand each other better.
#TF5 TF Blockchain Conference - Seattle - March 19, 2020
Join us in Seattle on March 19, 2020 as we host #TF5 TF Blockchain Conference, our 5th blockchain, bitcoin, and cryptocurrency conference. We'll have top speakers, influencers, investors, executives, and entrepreneurs discussing the latest in this innovative technology.
Confirmed top speakers are: Christian Hasker, Rahul Sood, Peter Taylor, Kristy-Leigh Minehan, Kurt Wedgwood, Ashley Harrell, Dr. Setrag Khoshaian, Farbood Nivi, Ric Shreves, Kate Mitselmakher, Steven McKie, Rizwan Patel, Paul Gambill, and Derrick Foote.
Early Bird tickets are available here: Early Bird Tickets