Customer loyalty programs are not realizing their full potential due to low client retention and redemption rates, time delays, and high costs. That’s where Libra Incentix comes in, with their new blockchain-based Loyalty Management System, LIX.
It was the Covid-19 pandemic that made companies realize that they needed to join forces to break new grounds with loyalty programs. Libra Incentix has ambitions to facilitate the world’s largest coalition loyalty ecosystem.
A coalition loyalty program is a loyalty system that offers incentives to customers of multiple businesses to allow those businesses to collect user data. Using their blockchain-based loyalty management system, Libra Incentix will package numerous customer benefits into a single platform, securing the most cost-effective way to offer a variety of benefits that the participating merchants would be unable to provide without the support of other businesses.
From the customer’s point of view, this approach offers a broader range of rewards associated with a single scheme. Customers can earn and spend points while shopping at various brands while participating businesses see an uplift in revenue, data collection, and cross-promotion.
How Does LIX Work?
The LIX loyalty management system is designed to reduce system management costs with smart contracts that report secure and transparent transactions to legacy systems, reducing costs associated with errors and fraud.
Through LIX’s trust-less, decentralized technology solution, their customer loyalty programs can be consolidated. Participating merchants still decide how and with whom the customer uses their rewards, but their ability to access and manage them is frictionless from a consumer perspective.
Using blockchain, LIX can enable a transaction to be recorded and accessed by multiple parties in real-time so that points are credited faster. As blockchain creates an immutable and time-stamped distributed database entry of every transaction ever made, each transaction record is easily traceable, preventing double-spending or manipulation. LIX can offer its solution at highly competitive rates with less time needed to reconcile settlements.
In addition to that, the LIX platform is easy to integrate with a company’s Point-of-Sale solution or e-commerce platform, meaning that point distribution and redemption can be fully automated.
Interestingly, Libra Incentix offers the ability to convert points into cash via their integration with digital wallets and conversion into their native utility token, named LIXX. LIXX tokens can be considered loyalty points; however, their redemption life-cycle is endless. Meaning the same token can be used multiple times for different purposes. LIXX token holders can receive significantly greater discounts on goods and services by redeeming the tokens rather than simply selling them on the exchange. This ensures that the tokens will be used for their actual use cases rather than becoming another cryptocurrency that people exchange for fiat.
Do Loyalty Programs Really Work?
The short answer is — yes, provided that they are active. According to the Neilsen study, up to 67% of customers tend to spend more frequently at retailers that feature loyalty programs. However, the problem lies in the fact that only about half (54%) of implemented loyalty programs are actually active.
Having a reliable and active loyalty program as part of your business could significantly increase your user base. In addition to the natural growth of your business, meaning the arrival of new users, loyalty programs can ensure that your old users will not leave your company without returning ever again.
Other studies have confirmed that 69% of customers stated that loyalty programs influence their choice of retailer, which makes sense. You would shop at the store that offers special perks rather than at those that do not. Some loyalty programs offer cashback or discounts, such as Libra Incentix’s, and 57% of customers who join loyalty programs do so to save money. 37.5% of them wish to win rewards, and half of the buyers stated that they are willing to change their entire behavior to attain a higher tier of the customer loyalty program.
Finally, the honest answer to whether loyalty programs work or not, from the mouth of the customers — the grand majority of 76% of customers said that loyalty program strengthens their relationship with the brands that they can offer them. In other words, yes, loyalty programs do work, and businesses should consider implementing them. Not only will they strengthen their relationship with their customers, but they will also keep their customers and see their user base grow as they continue receiving new ones.
Any organization looking to upgrade or implement a new loyalty system should take note of the gained efficiencies, reduced costs, and enhanced brand loyalty that LIX can provide.
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency.