What is clients’ loyalty about? At first sight this is just bonuses and cash back along with miles and discounts. In fact behind it there is a very big story which is becoming more and more complicated year after year.
It’s quite expensive to make a good-quality loyalty program from scratch. Especially if we are talking about a large omni-channel retailer, they should take into consideration huge number of interactions and integrations. There is an option to use ready platform solutions, however in this case business becomes dependant on them. Even if we take the most flexible among them. Very often small businesses can accept such conditions, but this becomes crucial and unacceptable for the larger companies.
But the main reason, surely, is the continuous decrease in efficiency of traditional loyalty programs. Currently customers are surfeited with monotonous bonus offers, they are surrounded by plenty different discounts and points. Meantime plenty of bonuses have lots of restrictions regarding the way of spending and expiry period. Every program has its own identificator: plastic card or mobile application. As a result clients are getting lost in such chaos and eventually they cannot identify if the have any bonuses or they have been burnt.
Blockchain will solve this issue and lead the loyalty industry to absolutely new level. BITLLE platform will let using convenient service on a turnkey basis both by a small store and a hypermarket of Amazon level. This platform allows to launch quickly a loyalty program and to save millions of dollars per year in comparison with any traditional program.
The most important point here is that users of such programs will be able to interact not only with sellers, but with all other customers of the specific or any other store. People will easily exchange their bonuses with clients of other companies worldwide. No additional integrations requited! We are talking now about a brand new milestone in the world of clients loyalty, presenting absolutely new business models.
In 2016 Loyalty Management market was estimated 1.68 billion USD (Markets&Markets), while its growth by 2021 is forecasted up to 4.59 billion USD, with the average annual growth (CAGR) 22%. It is one of the most fast-growing and perspective markets. Though, it has quite a lot issues.
The traditional interpretation of loyalty converts a client into a brand’s “slave”. It is generally thought the smaller percentage of clients did not return for repeated purchases, the better the program. The above statement is fair and quite logical. However, the more bonus offers appear, the more difficult becomes implementation of the above. The Millennial generation easily change their preferences regardless of the accrued bonuses. Especially, if bonuses have certain limitations, for instance, expiry time. Even bank cards bonuses (the most all-purpose reward) are burnt on cards of 30% Millennials just because they have forgotten about them (New York Post).
There’s such opinion that the more bonuses are burnt the more profitable it becomes for an emitter, as the cost of loyalty program per client becomes cheaper. Moreover, there is such term as Breakage meaning the percentage of burnt bonuses. However, based on practices and research, they state - the higher is breakage (hence, the redemption rate - share of used bonuses - is lower), the lower, on the long-term, is a customer retention rate (David Feldman), therefore spending of bonuses by customers generates loyalty
But what if clients do not want to spend bonuses right here, right now, while any attempts “to force” them spending bonuses result in loss of the clients ? Bonuses should be spent, that’s the important part. But is it a must to have been spent by those clients who received them initially?
Here appears a brand new paradigm of clients loyalty. Striving of many companies to transform a client into a “slave” will disappear in past, and clients instead will become “missionaries” involving new audiences into loyalty system. Since now unused bonuses will start flowing to people who really need them at the moment. Hence, at some point the barriers between clients’ retention and attracting of new clients are being erased.
There are several promising blockchain projects worldwide at the moment, which may be used for building up loyalty programs. We are creating our project the way it allows us not to stick to the certain blockchain. We believe that crosschain transactions will be common in future. However, at the start of our project we choose Ethereum, hence, all our current and future developments will be built preliminary upon it.
The main modern issue of blockchain technologies connected with scalability and, caused by it, low speed of transaction processing. Neither Ethereum, nor any other suitable for us blockchain can satisfy totally right now the needs of loyalty market in terms of speed and transactional costs. Moreover, the lack of possibility to pay transactional commissions by anyone except sender, as well adds rather large restrictions for possibility of blockchain to be applied in this field.
There are two solutions: 1. to wait for improvement of current blockchain projects (for Ethereum it is Metropolis-release, Raiden Network, Plasma); 2. on the top of blockchain to develop own technological layer solving the above issues. We are moving on both ways. We watch closely all developments that can improve Ethereum, we test, try, create our own ones. At the moment we do not have an answer how to get necessary features and capabilities, but we are sure that in the coming year we will have a blockchain technology meeting all requirements of loyalty industry clients.
How will be Bitlle Network represented itself? It is a technology of payment channels similar to Lightning Network in Bitcoin Network, but first and foremost it is meant to be used in Ethereum blockchain and oriented for operation of loyalty tokens. Instead of processing all transactions in blockchain directly, users will be exchanging messages to sign a process of tokens transfer
Bitlle Network will consist of p2p payment channels and a smart - contract, while deposit of funds will be happening in Ethereum channel. Nodes of Bitlle Network will be connected with each other for processing of transactions, and they will be connected with Ethereum network - for managing of deposits. All the above will create possibility to make hundreds thousands of transactions per second, which are approved in a split second. Commission in such network will be few times less than in the main blockchain. Commission can be paid not only by a sender but either by a receiver, as well as by any third party.
At the moment Raiden project stands nearest to the implementation of such network. They have launched recently the limited version (µRaiden) at Kovan Testnet of Ethereum blockchain. Based on information received from the developers of the project, we see that the most part of necessary functionality will be implemented in the final version. However, there are still doubts of implementation regarding some crucial for us characteristics. Moreover, founders of Raiden are planning to include to the project’s economy their own token - RDN, which is not in line with our economy, if we start using their main network Raiden Network. Therefore, we will probably make a fork of the above open-source project and will add necessary changes.
Our clients’ loyalty platform will function based on Bitlle Network. Apart from that, Bitlle Network is an open network, and it can be used for building other projects in loyalty and other fields.
Our aim is to provide businesses with a simple tool enabling to launch quickly loyalty program of any complexity. It is not just one more service offering to issue your own tokens, but here we add all necessary infrastructure, administrative part along with users’ interfaces.
As well шn our case interference from the side of programmers is not necessary. Besides, token emitter will pay only small commission for tokens’ issue and micro-commission for each transaction of a token. No any license and subscription payments (usually charged in traditional loyalty platforms) are included.Platform functionality:
Going forward, external developers will be able to create their own applications for interaction with the platform.
The project will earn BTL on the following будет зарабатывать BTL на следующем:
Node holders of Bitlle Network (any person, who has uploaded a special application):
BTL is an internal token of the project which is going to be used for payments of all commissions on the platform.
|Token Name||Bitlle Token|
|Token ticker symbol||BTL|
|Emission||100 000 000 BTL (fixed)|
|Digits after the decimal point||4|
Most part of tokens (70%) will be allocated during preICO, ICO and bounty program. 30% of tokens remain in ownership of the project’s team. In order to launch a loyalty program clients of the platform should buy BTL on a free market. BTL holders will be able to distribute them both on internal exchange of the platform and on any external ones. It is guaranteed that on the internal exchange the minimum price of 1 BTL will be not less than the last ICO price.
Moreover, BTL tokens are used and will be used in the future at Bitlle Cashback for crediting cash back/ bonuses. Tokens will be bought back on a free market for stores replenishment.
It is a pilot project of our platform and one of the tools used for primary allocation of tokens. As we speak, users can purchase goods and services via this project in thousands of online stores worldwide, receive fiat cashback and Bitlle tokens for loyalty. We test all development works first and foremost on this project.
Later on, Bitlle Cashbak will be buying tokens on a free market and crediting them to clients as cashback.
Apart of that, Bitlle Cashback is a source of fiat inflow to the reserve capital.
For fulfilment of decentralisation idea the most part of tokens will be allocated among independent holders. The allocation will be done as follows:
|Total BTL||100 000 000||100,000%|
|Team||30 000 000||30,000%|
|Partners||5 000 000||5,000%|
|Welcome Bonus||5 000||0,005%|
|Cashback Bonus||2 000 000||2,000%|
|Pre-ICO||12 500 000||12,500%|
|ICO||50 395 000||50,395%|
Since BITLLE platform is competing with traditional services where the value is fixed in fiat utins, we have to ensure businesses to be able to plan their expenses in advance in our project as well. Thus, the value of transaction will be tied to the US dollar. For instance, 1 transaction costs 0,01 USD and the current exchange rate of BTL = 0,50 USD. Hence, for processing one transaction you need 0,02 BTL. If BTL rate grows from the moment it was bought, a business owner can make more transactions for the amount of owned tokens. But the rate can move to the other direction. Therefore, a business owner can buy an additional temporary insurance against rate volatility, which allows to have certain guaranteed quantity of transactions.
Apart from Bitlle Platfrom itself, BTL token can be used either in other projects, as we do it with named above Bitlle Cashback. In the nearest future the ecosystem will be joined by several more loyalty projects. Different cashback projects will be able to use BTL for crediting cashback to their clients and to make additional profits in the form of percentage from token turnover in their project. Store will be able to accept BTL as payments and credit them afterwards as bonuses or to use them for issue of own Loyalty-tokens and for paying their transactions.
Decentralization of the project is not ensured only by wide expansion of it. Token holders should have possibility not only to earn, but also to influence the concept of the project, to participate in decision-making of main strategic topics. Hence, we believe it is necessary to create such structure which makes it possible for all holders to take part in management of the project.
All profits of the project both in BTL and other cryptocurrencies, as well as in fiat currency (partnership commissions of Bitlle Cashback) will be accumulated on special accounts. Part of the above will be used for support and development of the project, while the other part will be kept as reserve.
In fact, introduction of blockchain technology to such field of business as clients loyalty, is just the very first level. We believe that many businesses, starting with the simple issue of loyalty tokens, will continue moving on the real Decentralized Autonomous organisations.
Moreover, despite of the fast growing popularity of cryptocurrencies, most part of the population will look at them rather cautiously for quite a long time. A token used as a bonus for a purchase in this aspect is more understandable. This is actually the essence we can use for popularisation of cryptocurrencies and blockchain as a whole. Those people who have blockchain-client apps on their smartphones for managing their token-bonuses will be able much easier to start using in their everyday lives such cryptocurrencies as Bitcoin.