Loyalty Exchange
- Sreehari S S, [email protected], @sreehari-ibs
- Renjith K N, [email protected], @renjithpta
- Sandeep Chandran, [email protected], @github
- Kishore Raj, [email protected], @kishore_clouds
https://github.com/renjithpta/ibs_loyality_token_exchange.git
it is an idea to create an Loyalty Ecosystem with offline loyalty programs with an option to exchage or redeem loyalty with Lif.
Current Loyalty programms are more brand oriented. Customers dont have much freedom of choice how to spend these loyalty. They dont have flexibility to use one brands loyalty points on other brands. As per a poll conducted by Collinson found that 40% of those signed up to airline loyalty schemes never redeem miles. Given the many seeming limitations associated with them.
Acqusitions and merging of brands is very common these days. Currently there is no effective solutions for the brands to manage the loyalty points after acquisition.
It is not fully viable to implement loyalty inside blockchain because of the possible overhead transaction cost involved.
Out Idea is to implemet a loyalty system which is not entirely on blockchain, but to keep or create loyalty programs which are offline and provice an option to Exchange/Redeem the loyalty with Lif.
For customer this will crete a flexible environment to provide the freedom of choice and flexibility.
We have to consider business side as well, It will bring customer satisfaction as well as will attract more custoomers to the brand or business. All Brands minght not like the idea of exchanging all the loyalty to Lif. They can always come up with some business strategy, to restrict the out flow of the loyalty program with some exchange rate and with some threshold.
Say, If Customer has 20000 loyalty poins, the brand only give a exchange rate of 50%, the customer can redeem it for 10000 Lif or something similar. A threshold can be set to avoid overhead transaction cost. Using threshtold Brands can always cahrge customer if the customer goes below the threshold and possibly free redeem for customers above the threshold. Loyalty mergers are always a headach, both brands have to come to an agrement about the exchage rates. With Lif Loyalty exchage, Brands or customers will have an ooption to redeem the loyalty to Lif.
There are brands which allow customers to buy ancillary using currency. So brands can always provide an option for the customers to buy ancillary using Lif as well.
If everything goes well, there is a posibility thet we can create a Loyalty ecosystem around Lif, which will bring business and customer satisfaction as well as flexibility.
we wanted to try loyalty on Lif, But after the conversations with the winding tree organisers, we learned there are some issues need to be addressed to implemet this beacuse of the overhead transaction cost and confutions around the implementation. We have dome some brainstorming and gone through some of the senarios and trying to come up with an idea.
- https://docs.google.com/presentation/d/1eIAwZRGcY1VwmVYvA3WUzwVt0_tqJqrwORyETURzReo/edit?usp=sharing
High Level Application Flow