The modern loyalty and discount market is looking like a global mobile communications ecosystem having no automatic roaming.
All brands and retailers offer closed-in programs that are absolutely incompatible with each other. Consumer is no longer able to master such extensive offer even at the regional level. Coalition programs, aimed to minimize this friction by unifying of user interface and widening loyalty borders, cope with this role only in part. Despite the coalition programs boom in recent years and popularity of such business model, coalitions have not been able to carry out the task of loyalty decentralization and simplifying access to a variety of offers from different brands and retail networks. Modern loyalty and reward programs fail to answer consumer needs due to numerous difficulties of claiming rewards in time, complex collecting rules, high density of program offers and many other frictions. Thus many consumers are abandoning their subscriptions without redeeming their bonus savings. This has been clearly shown by the following recent study: Bond Brand Loyalty Report ‘2017 called «THE BATTLE FOR LOVE & LOYALTY» (in collaboration with VISA) stating “MEMBERSHIPS ARE UP, WHILE MEMBER ENGAGEMENT IS AT CAPACITY”.
In fact, the situation is even worse, since their figures show slight decline instead of stagnation. The number of active memberships have declined from the average 7.8 active memberships per user out of 10,9 (72%) in 2014 down to 6.7 active memberships out of 14.3 (just 47%) in 2017.
“Since our 2014 study, the average number of Program memberships per American consumer has increased steadily from under 11 Programs to over 14. Meanwhile, the number of Programs in which Members are active, meaning they have earned or burned Program benefits or rewards, is virtually unchanged at just under 6.7 (47%). This suggests that Americans are willing to enroll in additional Programs, yet their capacity to engage has reached a threshold.” — concludes the report.
The customer complication is aggravated by the fact that earned points, miles or "cash" are not liquid inside the existing ecosystem consisting of numerous centralized loyalty and reward programs. The friction is also significant for businesses issuing points, miles and other rewarding tokens. While businesses are striving to retain their customers, they are simultaneously destroying customer loyalty by compulsory withdrawing of bonus savings in order to respect financial requirements relating to issuance of deferred liabilities.
LIQUID BONUS IS THE NEW ADDED-VALUE ROAMING SERVICE FOR CENTRALIZED LOYALTY AND DISCOUNT PROGRAMS
In just a few years the world of rewards will be radically changed, and those who will catch an opportunity to become own the main tokenized instrument in this new global world will not remain disappointed!
Now you have a unique opportunity to be involved in the foundation of a new global loyalty ecosystem, driven by buyers, rather than by retail networks and loyalty alliances. Only the modern customer-oriented approach can lead the market to a new horizon in terms of attractiveness, usability and gross turnover.
LIQUID BONUS MEDIUM ACTS AS A HUB CONNECTING CONSUMERS WITH RETAILERS AND BRANDS BY ANSWERING THEIR URGENT NEEDS FOR IMPROVED COMMUNICATION, OPTIMIZATION OF OFFERING AND ADVANCED GEO TARGETING DRIVEN BY LBS .
Using Blockchain technology, the Liquid Bonus Medium eliminates most frictions preventing instant use of rewards and other customer benefits by introducing the interoperable Liquid Bonus (LiBO) reward tokens in combination with online marketplace having location-based (LBS) capability.
Being used as a single unified rewarding mean inside the decentralized borderless international environment, Liquid Bonus tokens shall play a role of the high-grade fuel for the next generation global loyalty and rewards ecosystem.
«3Data sourcing» TECHNIQUE
The Liquid Bonus ecosystem will accept, consolidate and present in an optimized form the following geo targeted data:
- OFFERS FROM BRANDS AND SUPPLIERS - scheduled promotions and daily offers from manufacturers and suppliers. Recently, brands are increasingly active in the establishing direct contacts with consumers, so this communication channel is seen as no less important than retail;
- OFFERS FROM SHOPS AND RETAIL NETWORKS - promotion campaigns and daily offers of single shops and retail networks are facing constant communication need for efficient delivery of their actual proposals to the target audience. We consider the notion of "target audience" not just as a usual classification of buyers, but rather as their current location. Indeed, targeting location to a country or city can’t answer the actual consumer needs due to the complex logistics in urban areas. Most potential buyers will likely reject to cross a city for catching some discounts. The only exception is seasonal sales with significant discounts but the majority of daily purchases made in the "here and now" mode. That is, in order to achieve higher effectiveness of sales promotions, retailer should be capable of establishing communication channel not just with visitors, but also with all potential buyers located close enough to be hooked by the offer. The era of developed information technologies and mobile communications makes it possible to replace all barkers screaming about local sale with an automated means of Liquid Bonus aggregating loyalty and discount offers and distributing related information to consumers located in the immediate vicinity of the point of sale.
- CONSUMER FEEDBACKS - the main focus here is on aggregating information from consumers, primarily in the form of cash-desk receipts, uploaded into the system through the Liquid Bonus wallet application. In addition to the social component («being happy with a good daily deal, don’t hesitate helping others to get it and next time they will help you»), as an incentive for submitting receipt to the Liquid Bonus medium, the LiBO token «thank you drop» shall be automatically transferred from the system to the consumer’s wallet.
What we bring to consumers
Lower complexity of sign-up for reward
Single entry point for numerous Loyalty and Reward programs
Smooth earn & reward around the world
Friendly cross-border rewards for tourists and business travelers
Every buyer is interested in optimizing the value of his (her) shopping cart in the «here and now» mode. In order to achieve the highest level of efficiency, Liquid Bonus Medium will simultaneously utilize the following set of customer incentives:
- Social incentive: personal involvement in the formation of an interactive offering map – share your best daily purchases with community for everyone’s better savings and community will help you saving tomorrow too;
- Financial incentive: spend half a minute to send your daily receipt to the network and get your Liquid Bonus reward for your work. Unlike proprietary points, Liquid Bonus tokens can be instantly collected and redeemed any time in the future;
- Convenient saving incentive: every Liquid Bonus wallet owner is offered to compile a shopping cart inside in the mobile application in order to find out the nearest store with the best purchasing price for selected products based on available information about actual promotions and offerings;
Mobile Liquid Bonus wallet application with the seamless use of the location update function is a unified entry point to the global marketplace for promotion campaigns and loyalty programs. LiBO Wallet is aimed for storage of Liquid Bonus tokens, exchange of proprietary points and miles and support 3Data sourcing technique for data aggregation from suppliers, retail networks / sales outlets and consumer-generated data.
The social component of the Liquid Bonus core has the following constituents:
- «OPTIMIZATION OF PURCHASES» every buyer interested in optimizing of shopping cart, can retrieve the actual data by means of location-based Liquid Bonus service. In order to improve the database, buyers can share information about their actual purchases with the community and get a LiBO bounty for every validated upload so the more purchase receipts uploaded - the greater the bounty. LiBO bounty tokens can be redeemed, exchanged or sold on the free market.
- «OPTIMIZATION OF REWARDS» every buyer is interested in consolidating of loyalty points and other rewards, but often customers deprived of the opportunity to get a real benefit from the accumulation of points. Loyalty programs and retailers allowing transfer customer savings into the Liquid Bonus tokens prior to expiration of native points, will gain competitive advantages through the customer-oriented policy. Being interoperable, the withdrawn Liquid Bonus tokens can be redeemed on trips, during promotions, exchanged or sold on the free market.
What we bring to businesses
Higher customer envolvement, thanks to unified mobile application
Save on rollout & OPS. of your loyalty and reward program
Earn on conversion of points miles and other instruments to/from LiqBo®
Extend your customer base, thanks to a new level of cooperation eliminating a need of complex partnership agreements with other loyalty and reward programs
Every store is interested in attracting new customers and tracking customer purchases to form new loyalty offers. In order to achieve the highest level of efficiency, Liquid Bonus Medium will simultaneously utilize the following set of retailer incentives:
- Expand opportunities for studying demand: Use the opportunity to study the customer preferences outside of home retail network through the information collected and stored in the Liquid Bonus system;
- Study the purchasing geography: track your customers purchasing outside of your retail network through the information collected and stored in the Liquid Bonus system;
- Optimize your advertising: inform your customers about current promotions and discounts when they are located in easy access zone;
- Expand the customer base: get additional customers to the home retail network stores by establishing of a new communication channel with tourists and visitors who are located in easy access zone;
- Having two loyalty systems as a result of merger or acquisition? There’s no problem, the Liquid Bonus Medium will help to quickly build a bridge for the end-to-end merchandising of accumulated points.
Every brand is interested in establishing a direct communication channel with consumers and in obtaining information about their preferences. In order to achieve the highest level of efficiency, Liquid Bonus Medium will simultaneously utilize the following set of brand incentives:
- Expand the customer coverage: establish a new communication channel with consumers and start your global loyalty program;
- Optimize your advertising: inform your customers about current promotions and discounts when they are located in easy access zone;
- Study consumer demand: Use the opportunity to study the customer preferences through the information collected and stored in the Liquid Bonus system;
Every loyalty program or coalition is interested in growing customer base and accelerated leaching of internal points to reduce deferred liabilities. In order to achieve the highest level of efficiency, Liquid Bonus Medium will simultaneously utilize the following set of loyalty system incentives:
- Economic feasibility: the possibility of withdrawing expired miles and points from the program’s economic context instead of the unpopular expropriation by expiration;
- Expand the customer base: establish a new communication channel with tourists and visitors to acquire new subscribers for the existing loyalty program;
The business component of the Liquid Bonus core has the following constituents:
- «BIGGER DATA» Business is interested in expanding the scope of the collected customer data, but is usually limited by its retail network. After connecting to the Liquid Bonus system, the business gets the ability to match the anonymous Liquid Bonus wallet address with the known customer having personal data and history integrated to retailer’s loyalty program. Therefore retailer gets access to customer receipts from other stores, which were collected and stored in the Liquid Bonus Medium;
- «COMMUNICATION CHANNEL» Business is interested in optimization of its sales campaigns. Being part of the Liquid Bonus ecosystem, retailer shall get an additional communication channel to consumers advanced with location-based service thus gaining an increased efficiency of communications;
- «EXPANSION OF THE CUSTOMER BASE» Business is always interested in attracting new customers. Being part of the Liquid Bonus ecosystem, retailers will get an opportunity to establish relationships with both - potential buyers from local region and tourists / visitors. This possibility is especially relevant for the regions with a large tourist flow and high business activity.
Being designed as a community of consumers interested in optimizing their shopping basket by means of more efficient use of loyalty programs and daily deal offerings, the decentralized Liquid Bonus ecosystem becomes a true global aggregator of information about purchases by means of receipt data consolidation & processing. Purchases in various retail chains and stores are registered by the involved buyers on a daily basis. It is essential that accumulated receipt information is linked just to the anonymous Liquid Bonus wallet address and becomes available to all participants accepting and issuing Liquid Bonus tokens having no violation of personal confidentiality principle.
At the same time, retailers participating in the Liquid Bonus Medium through the installation of the Loyalty Node (in fact, this node is the Liquid Bonus Blockchain auditor), in addition to the possibility of exchanging their internal loyalty points to Liquid Bonus tokens and back, shall gain a unique opportunity to unambiguously link the buyer's personal data (internal data of the loyalty program) with the anonymous Liquid Bonus wallet address thereby expanding the context of interaction with the consumer from the local retail level limited by loyalty program to the true global level, having no geographical or business limitations.
Over $48 Billion Worth of Consumer Loyalty Reward Points Dispensed Each Year in the US alone, Yet One-Third Are Never Cashed In
Out of roughly $48 billion worth of perceived value in reward points and miles American businesses issue annually, at least one-third, representing $16 billion in value, goes unredeemed by consumers, according to the study, titled 2011 Forecast of U.S. Consumer Loyalty Program Points Value. (The 2011 study from SWIFT EXCHANGE and COLLOQUY)
According to the COLLOQUY’s biennial report on the scope of U.S. customer rewards programs "American households hold memberships in 29 loyalty programs spread among the retail, financial services, travel and various other economic sectors, but are active in just 12 of them. The corresponding household membership figures in the 2013 census were 22 and nine." According to 2011 COLLOQUY Loyalty Census study “Out of roughly $48 billion worth of perceived value in reward points and miles American businesses issue annually, at least one-third, representing $16 billion in value, goes unredeemed by consumers”
The Liquid Bonus® Loyalty Aggregation Medium directly addresses this by sharing of the widely adopted economy model of conventional loyalty programs with additional economic incentive that allows users to collect the LiqBo® Tokens from different loyalty market players and easily ‘monetize’ them by rewarding at their next purchase elsewhere. By implementing of the Liquid Bonus® Medium we strive for a much lower cost than the current business models of centralized loyalty programs can reach and much higher throughput rate and performance than the current open Blockchain networks allow.