Rakuten: Introducing Blockchain to a $9B Loyalty Program

Brave Browser: Reimagining Advertising on the Internet

Alluva: Building the World’s Largest Analyst Network

Conclusion

Disclaimer: Content Produced by Alluva

Customer loyalty programs form the bedrock of many companies’ success today, especially in the retail space where encroachment from e-commerce giants such as Amazon is an ever-growing threat. According to a report published by Kobie Marketing in 2018, a whopping 86% of consumers have joined a loyalty-program to earn points and rewards. Brands such as Starbucks and Targets have specifically designed their programs to not only encourage loyalty, but also increase engagement, spending, and foot traffic at their respective outlets.Having said that, coupons and loyalty programs are not new marketing concepts. The principle has been in play for well over a century at this point, considering that Coca-Cola offered customers a free glass of the beverage back in the late 1800s, which was redeemable against a handwritten coupon. However, with the advent of technologies such as email, smartphones, and the Internet, these programs have found even more success and methods of engagement.Yet, the infrastructure and maintenance costs associated with building even a digital-only rewards program can far surpass the budget of many smaller companies. While giants such as Amazon spend a miniscule amount of their revenue on these programs, the scenario could be the exact opposite in the case of an up and coming retailer.Blockchain technology can lower the cost of entry for many such companies due to its ability to be highly secure and decentralized. Given that consumers are already accustomed to mobile wallets for accessing and redeeming their reward points, the switch to blockchain-based tokens for existing businesses will most likely be a frictionless experience as well.Enterprise interest in blockchain is at an all time high in 2019, even in industries as varied as healthcare and real estate. Now, many believe that the technology could prove to be disruptive in the consumer rewards space as well. To understand why, let’s take a look at a few companies that are already utilizing blockchain in the loyalty space.Rakuten, popularly referred to as the Amazon of Japan, has made several public moves in the blockchain space, starting with the acquisition of a Bitcoin exchange. The company is already known to have a vast and rewarding loyalty program, which almost single-handedly allowed it to triumph over newer entrants like Amazon. In February 2018, the Japanese company announced its own blockchain-based cryptocurrency, Rakuten Coin, to go with its $9 billion loyalty program.Rakuten’s CEO said that the token could be used to purchase goods and services internationally on the Rakuten network, circumventing many of the currency issues faced by consumers and sellers.Brave offers a unique application of blockchain technology, doubly so in the loyalty program landscape. The company offers a free web browser that disables all forms of digital advertising and tracking algorithms. Instead, users can opt in to receiving periodical advertisements that do not violate their privacy or browsing history in exchange for 70% of the revenue. Rewarded in the form of Basic Attention Tokens (BAT), this revenue can be automatically passed onto the user’s most viewed content creators or websites. Alternatively, the tokens can be exchanged for any other fiat or cryptocurrency on an exchange.Without blockchain, creating and maintaining such a system at a 70%-30% revenue split would be near-impossible due to the infrastructure requirements. While typical monetary transactions often require expensive third parties such as payment processors and banks, blockchain-based tokens can be effortlessly transferred for a negligible fee.Alluva is a token-reward based web application that aims to make investing in emerging asset classes such as cryptocurrency safer and more accessible to retail and institutional investors. On the Alluva platform, users can earn rewards for accurately predicting the price potential of various digital currencies over time periods ranging from a week to an entire year. Similar to any other cryptocurrency token such as BAT, these tokens can be traded against other currencies or used to purchase products and services from merchants and third parties that accept Alluva tokens (ALV).The platform also gives everyone the opportunity to participate or compete in limited time events and contests. Users that sign up for a new Alluva account between November 1st and 15th, and make 10 predictions by December 15, 2019 will automatically stand a chance to win 7,500 ALV tokens .Given that many emerging cryptocurrencies now have a strong focus on micropayments, it’s likely only a matter of time before more customer loyalty programs migrate to a blockchain. After all, companies like Starbucks and Walmart have already made significant investments in blockchain to enhance the efficiency and traceability of their digital supply chain systems. Their respective digital ledger-based loyalty programs could be only a few years - or even months - away.