Tagged “LiqBons™ and points”

How do loyalty programs [un]work?

Loyalty Games

Discount and loyalty programs were invented more than one century ago. Once upon a time, customers were given metal tokens and stamps issued by a different shop. In those distant times, people lived settled and traveled, at best, on horseback. They were going, by modern standards, not on a trip, but rather on a walk.

Since then, a lot has happened. But the want to stimulate sales, and ideally, to tie the buyer to the retailer, has remained. And, oddly enough, the methods in their essence have not changed significantly. Every store or retail chain strives to achieve pure customer loyalty. So they spend extraordinary amounts of money on developing CRM and loyalty programs, making changes to IT systems and cash desks, issuing plastic cards, mobile applications, and distributing them among customers, forgetting that such systems work great just in case no one else is doing it and become a real disaster for customers as soon as every retailer starts doing roughly the same... or almost every retailer because not everyone has enough resources to implement complex and expensive IT systems.

The sophisticated reader will probably notice that the era of plastic cards is already in the past. And today, everyone has a mobile to store numerous loyalty card numbers, and many retailers have already abandoned cards altogether and switched to mobile numbers and applications.

Yes, this is true. The point «issuing plastic cards and distributing them among buyers» is rapidly disappearing from the long list of necessary, and the user experience is becoming much more successful.
But in the era of mobile applications, illiquid points remain illiquid, no one canceled the arbitrariness of retail, and the accumulated bonus points continue to be revoked or depreciated at the command of «the boss of the whole loyalty» of the retail chain or airline.

The «loyalty» turned out to be bizarre. It seemed that retail built the system in the buyer's interests, who would stay with the store, chain, or airline in gratitude for the special treatment. But the result is we wanted the best, yet it turned out as always. Once feeling a donkey carrot, the buyer turned away from the offered gingerbread of points and miles while gravitating towards promotions with the money-up rule.

The idea behind the Liquid Bonus™

The idea of the “Liquid Bonus” as the unified token into which you can transfer your points, miles, and other rewards provided by retail chains, stores, and airlines, has appeared instantly. But it took a long time to find a solution that would not become another partnership or coalition of several sellers. You can come up with a new elegant solution that will bring success and money but will not change the essence. This time, my goal was not common for a business innovator.

For the Liquid Bonus™ to become attractive to buyers and retail chains, it must be truly global, i.e., it shall work not only with the majority of sellers but also be widely accepted in different countries. This tool should not interfere with the process already established by retailers or loyalty coalitions for their loyal customers. And it should not share any customer data accumulated in the loyalty program of an individual retail chain or loyalty program. At the same time, I thought, LiqBon™ must ensure trustful relationships between the participants in the system, even if initially they have no trust in each other at all and even some are direct competitors. By joining such a system, retailers and manufacturers would be able to expand the capabilities of their CRM systems while eliminating the worst drawback of existing loyalty programs - the periodic expropriation of accumulated loyalty points and miles.

But it turned to be that the major retail market players are not ready for "loyalty reward roaming" service today. Well, this is old news for me. Many years ago, when the author worked for the emerging mobile telecommunications industry, telecom operators did not want "to share their subscribers and profits with competitors" either. But later on, the network and international roaming appeared, which in some places began to generate even better revenues than intranet telco services. So I am strongly sure there is more to come!

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Do you believe in the idea of a “loyalty reward roaming” service?

If yes, please join our community or follow our discussion group to provide your input in improving the Liquid Bonus™ ecosystem or connecting new consumers, manufacturers and service providers, shops, and merchants to it, so that everyone can enjoy shopping and selling with less intermediary frictions!

The Main Properties of the Liquid Bonus™ Rewards.
Free To Earn

There are no limits on the transfer of Liquid Bonuses™ inside our community-driven bonus ecosystem. Every person, store, trader, manufacturer, or supplier can earn LiqBons from anyone and grant them to anyone else. The only limitation for granting LiqBons is their amount in your pouch. Every LiqBon™ Pouch owner is totally free to choose what and how much to share from the available Liquid Bonuses™.

Free To Accumulate

Did your illiquid miles or points disappear because the airline or supermarket just didn't want to store them in their CRM system? This is a common event for an existing corporate customer reward system because when issuing reward points, the seller never grants the exclusive rights to store and to redeem them for rewards. That is why we call them "illiquid".

Your accumulated LiqBon™ rewards cannot be nullified since they are stored in a global registry where absolutely all operations are recorded so they can not be just erased. Indeed, all pouches and transactions are interdependent, and to fake an operation or contents of a pouch, all the registry, starting from the first minute of its existence, would have to be corrected.

Is it really impossible to lose my LiqBon™ savings? Certainly, it is possible. This does not refer to technology, but rather to user behavior. For example, having your phone stolen, a thief will be able to transfer all your LiqBons™ from your pouch to himself. Or, for example, if the mobile device breaks down, then all data including the pouch application will be lost. Nevertheless, every user can restore access to the LiqBon savings by installing a LiqBon™ Pouch application on a new phone, using the unique data, consisting of the name and the set of codewords ("code sequence" or "seed phrase"). But if the unique user data is lost or forgotten, the LiqBon savings will be irretrievably lost.

Note that if you forget the exact spelling of the name and the seed phrase used during the initial registration, then all your LiqBon™ savings will be inaccessible even with the help of the developer. So the pouch with your savings will remain unattended in the registry until a new user will manage to accurately reproduce your name with the seed phrase. Although the probability of such an event is so small that it is almost impossible.

Free To Redeem

Unlike the existing proprietary corporate loyalty programs with their illiquid points and miles, the open Liquid Bonus™ ecosystem allows free cross-business and cross-border use of LiqBon™ rewards. Every Liquid Bonus ecosystem community member can get and grant LiqBons anywhere and for anything - not just in the country of residence, but also on trips around the world.

Club LiqBon™ guarantees the true freedom to own and dispose of incentives. The rusty corporate loyalty points and miles are going back in time.

Who Needs These LiqBon™ Rewards!?

Every single user decides how to use the LiqBon™ Rewards. They can be given to another person as a token of gratitude or maybe spent at any participating store that already has its own seller's pouch. The important thing is that now absolutely any user or store can freely receive, save, give away and exchange their Liquid Bonuses without any risk of losing their savings due to a whim of a loyalty program owner.

The Liquid Bonus LiqBon™ breaks stereotypes

The retail world is filled with numerous points and miles. Faced with overwhelming market saturation with loyalty programs, once cunning marketers have implemented direct cashback (paybacks for purchases), which has become a veritable parody of modern customer acquisition and retention programs and pulled retail players into the abyss of price wars.

Drawn into the "loyalty games", sellers and buyers have completely forgotten that value is always on the side of the consumer. After all, the buyer's activity and the ability to make things paid is the main market value. But it was retailers and their coalitions that usurped the means of rewarding, although they produce nothing than service.

Indeed, the loyalty program owner always reserves the right to change the rules of use and value of incentives, and in many cases does not hesitate, at its discretion, to reset the buyer's bonus account. Also, retail chains having the most comfortable position to communicate with consumers often screen out manufacturers and suppliers, preventing them from developing direct relationships with consumers and capitalizing on such opportunities.

We have invented the Liquid Bonus LiqBon™ and released it for free circulation as the world's first universal and independent incentive tool that works equally well for the benefit of all users, from buyers and small traders to large manufacturers and international retail chains.

While this new reward ecosystem called «Club LiqBon™» is in its infancy, we hope that through the user community it will become a reliable and mature service capable of eliminating much of the existing injustice regarding the accrual and write-offs of bonus points and miles.

Join us and we will do it all together!