A blockchain technology has been combined with the loyalty program, which induces re-purchasing of customers through saving mileage. SMATHIUM, an integrated loyalty program based on the blockchain technology, is a program that has been developed by connecting the unique characteristics of blockchain that are decentralization, dispersibility, and security to the loyalty program so that it can be applied in various fields.
A method for inducing repurchasing of customers by saving mileage for a certain amount of the purchasing price has been an important marketing strategy of many companies. Especially, due to the development of the recent mobile market, many kinds of loyalty programs are introduced that can be applied both online and offline. However, the overflow of loyalty programs caused some side effects, that is, each program has lost its unique features and the users’ fatigue has increased as well. Some chronic problems including the difficulty of saving points, lack of places to use the scattered points, depreciation of the rewarding points still remain.
In such a situation, SMATHIUM pursues a service where the participants can satisfy and share benefits by overcoming the problems and limitations of the existing market by applying blockchain technology. The application of blockchain technology allows integrated management and security of places for using points, and prevention of the points value depreciation.
SMATHIUM has integrated the reward points to the SMATHIUM infra that were separately provided by the existing loyalty program. Thus, the different reward points from each platform that forms a partnership with SMATHIUM can be exchanged into a SMATHIUM token. Such open-type reward structure integrates neglected reward systems from the closed structure as a single token system so that it can protect the rights and values of customers at any time, at any place. By applying the blockchain technology, transparent token transfers and transactions will be possible and this can enhance the brand loyalty of customers by sharing the benefits among the affiliated stores.
With point saving and vitalization of using points, SMATHIUM provides news and the loyalty service app that customers can participate. Along with the self-loyalty program services, by having a partnership with the existing online and offline loyalty programs, it plans to offer high value rewarding points so that the blockchain technology can be easily experienced and used in daily life and customized services.
Joseph Hyun, CEO of SMATHIUM, discussed “The purpose of combining the blockchain technology and loyalty program is to allow value sharing of all participants including the customers and brands.” He also said that “By applying our accumulated business expertise, we will expand our global network to create new opportunities and variety of benefits.” Besides, he further stated “Our high-quality loyalty program aims to create an ecosystem where all of the major companies, small businesses, and customers can be satisfied.”
Meanwhile, SMATHIUM has been drawing lots of attention by receiving the perfect score (5 out of 5) in the List ICO that is a widely known ICO evaluation site and receiving 4.5 out of 5 from the ICObench. Also, it plans to conduct the ICO soon.