The future of any company depends directly on its ability to attract new customers or keep existing. Loyalty programs are one of the most effective and effective tools to achieve this goal. Second Development of access, reward programs can increase a brand's market share up to 20%. However, loyalty campaigns are still far from perfect.
The acquisition of new customers costs five times more than the existing maintenance, according to a study conducted by Forbes magazine. At the same time, the loyalty campaign can increase sales of a company. For example, after Starbucks implemented a reward program, it saw a record quarter. The program has helped increase revenue to $ 2.65 billion, with brand managers emphasizing their reward program as the main engine of such an amazing result.
Every year more and more industries adopt reward schemes. In 2015, the average American family belonged to about 13.3 loyalty programs, second Statesman. In the day of today, this number increased to 18 loyalty program memberships, while it is active only in 8.4.
Despite the fact that global reward programs are extremely popular with 3.2 billion members in the United States alone, they are still lacking in efficiency. Of $ 100 billion in reward points and miles not used by consumers. Moreover, 85% loyalty program members have not used their bonuses since the day they signed up.
On the other hand, loyalty programs are not cheap for businesses like any type of discount can reduce the profit margin.
Before starting your own loyalty program, the company should think about how to show its value to its loyal customers. As an example of a failed attempt, it is necessary to mention the Microsoft Xbox Live campaign. Starting in 2012, Xbox began to reward its fans with 20 Microsoft Points on their birthday, which was only $ 0.25. There is no wonder, therefore, sarcastic and snarky comments begin to appear.
In addition, companies should keep in mind that one of the fundamental challenges lies in the ability to determine what customers actually need. In 2016, Starbucks introduced a series of changes to its loyalty program. The main purpose was to motivate customers to spend more to receive more rewards. If before, you could get a free coffee every $ 48 spent, now you should spend something for $ 62.50 to get it. As a result, the new Starbucks loyalty program completely failed.
The question must be raised: is there a way to avoid repeating the same old mistakes? Korean company M2O believes that blockchain technology can solve existing problems. To improve the efficiency and usability of loyalty rewards, they invented a M2O payment system that converts bonus points into M2O coins that can be sold, traded or even traded in cryptocurrency bags. M2O will provide its users with an easy, fast and perfectly secure platform, supported by interlocking APIs for the protection of personal information and the management of registries.
For small brands that often have no knowledge or experience on how loyalty programs work or how to manage them, M2O offers the Payment Toolkits platform that will facilitate the use and distribution of bonus points. Moreover, this system will allow users to organize their loyalty points and activate the membership system when necessary.
It is worth mentioning that the blockchain implementation improves The M2O platform security and immutability, so it excludes the possibility of fraud and hacker attacks. All loyalty rewards will be safely stored at the M2O Mileage Bank.
Thanks to the M2O platform, companies will have access to data that can be useful to analyze how loyalty rewards are used and for what. It will include customer mileage and point expenses, trade analysis and the result of ad reward campaigns.
Any company has an important rule: satisfied customers always return and often share their experience with friends and family, thus creating a natural flow of customers. Unfortunately, in the age of technology people have become accustomed to practically everything, which is what brings a lot of complexity to companies.
The M2O team believes that loyalty programs are still the best tool to attract new customers and keep them already existing, even if some changes need to be made. Buyers are not very happy with the current loyalty system because they can not use them freely. The M2O platform tries to solve this problem by implementing blockchain technology. Simplify the management of bonus points for both companies and buyers, converting them into real assets that can be used anywhere and at any time. Companies, in turn, will have access to these crucial data, such as where or what these loyalty bonuses were spent, if the current loyalty program is efficient and, if not, how to improve them.
M2O is working to stop the market of loyalty programs currently inefficient using blockchain technology and its features. As a result, they are able to transform previously intangible assets into digital currencies that can be freely used. With the M2O Pay system, users will be able to convert miles, points and any other loyalty bonus into M2O coins. M2O token holders will be given complete freedom to exchange their coins as they wish.
M2O is planning to launch the second crowdsale on October 29th at 4:00 pm JST time (UTC +9), which will officially end on November 23rd at 4:00 pm (UTC +9 hour). They set a hard cap of $ 56 million and a soft cap of $ 5.6 million.
For more information on the M2O project, visit the relevant website website, follow the growing communities Facebook, chirping and join the discussion Telegram.