PEOPLE DON’T USE THE BONUS POINTS THEY HAVE
Research by Colloquy Census found that more than half of loyalty memberships in the United States — about 54% — are inactive and 28% of consumers have abandoned a program without ever having redeemed a point or mile. The abandonment trend - where members decide a loyalty program isn’t worth their time - should worry companies.
As more consumers participate in brand loyalty programs, more of those loyalty points are going unclaimed — to the tune of $100 billion, according to marketing firm, Bond Brand Loyalty. That is bad for both businesses and consumers.
Business are unlikely to sustain customer loyalty by giving them something that has no value. Useless bonus points are not just ineffective, they are considered as spam, worsening brand perception.
CURRENT LOYALTY PROGRAMS ARE INEFFECTIVE
AND NOT TARGETED
Regardless of which type of loyalty program model they use, consumers are more demanding than ever. They expect to be understood as individuals and to receive personalized offers and communications. More than half — 59% — said they usually ignore an irrelevant piece of communication from a loyalty program. Weak connection can result in losing those who join but fail to participate, as well as the possibility of consumers simply leaving a program they perceive has little value. The 2017 Colloquy Loyalty Census reveals the pervasive need for loyalty programs to create meaningful relationships with consumers that go beyond mere transactions. Research by Digital Connections found that consumers are quick to turn their backs on brands that get their marketing wrong: almost half — 49% — of people will disregard a brand if it bombards them with ads or if they perceive the advertising to be irrelevant; while more than one-third - 36% - are more likely to buy from a brand that sends them tailored messages.
ABILITY TO TRADE BONUS POINTS FROM VARIOUS
The SLP’s aim is to allow consumers to trade bonus points they earned from multiple loyalty programs by building an exchange platform and tokenising bonus points. Upon achieving such target, tradable bonus points may get a market price and may, therefore, become valuable for consumers. The consumers won’t need to carry around hundreds of loyalty cards given that all available bonus points and promotional offers will be stored in a single app. SLP perceives a large opportunity to disrupt the customer loyalty industry by establishing a decentralized and fair ecosystem, allowing businesses to build fast and effective loyalty programs and consumers to increase the value of loyalty programs they participate in. We aim that businesses that are partnered with SLP shall be an opportunity to easily convert their bonus points into tokens using the SLP Platform, instantly making them tradable for consumers. Even with no access to technical skills, businesses will be able to create their own “tokens” in a single click. Blockchain creates an immutable, time-stamped distributed database entry of every single transaction ever made, making each transaction and its record easily traceable, but also rendering them irreversible, preventing double spending, fraud, abuse and any other form of transaction manipulation.
PERSONALIZED AND TARGETED LOYALTY PROGRAMS
Exchanging and spending points and performing various transactions creates valuable data. This data can be bundled and sold to merchants and brands, creating the opportunity to target specific groups of users with certain interests, demographics, or location, further eliminating spam and offering value to consumers. SLP is planning to replace current loyalty programs with personalised, direct and efficient marketing, driving marketing costs down and facilitating effective interaction between businesses and consumers