Loyalty programs are an essential attribute of modern marketing. According to the Loyalty Report 2017, produced by customer engagement agency Bond in collaboration with VISA, loyalty program enrolment has grown by 31% over the last four years.
This marketing tool has proved its efficiency, but the research in this sphere has identified a number of challenges. Customers are typically involved in dozens of loyalty programs and the variety of point systems; redemption options and bonuses make it difficult for them to make full use of their participation.
The estimated amount of unredeemed reward points in the USA alone is about $100 billion. Research shows that the evolution in the way loyalty programs are managed is likely to come from the blockchain sphere. The Lakeba Group is looking to develop a promising solution in partnership with Mobecom.
The Lakeba Group specializes in commercializing innovation. This multinational company headquartered in Australia is successfully working to bridge the gap between the blockchain technology and business.
Giuseppe Porcelli, CEO and Founder of the Lakeba Group, explained the current impact of the innovative technology on the work of the company:
“Blockchain developments guide much of our daily journey, particularly for our growing team of solution architects and blockchain developers. This allows us to regularly navigate new territory in the emerging technology sphere.”
The recent announced partnership of the Lakeba Group with Mobecom may open a whole new era for the loyalty programs. Mobecom is a company specialising in global loyalty programs to drive better customer engagement outcomes for businesses. The company is listed by the Australian Securities Exchange.
The joint venture will kick in once the development of the blockchain and cryptocurrency exchange platform for Mobecom’s digital rewards currency AirBux in completed by Lakeba’s development team. The new project is called AirCrypto Platform and will be completed in the next four months with a go live date closer to the end of October this year.
This platform offers a significant step forward for current loyalty programs: users of AirCrypto will be able to convert their cryptocurrency with the AirBux currency which can be spent on goods and services in-store and in-app across all participating AirBux merchants. Priority markets for the new project are Australia, Singapore and South Africa.
The agreement between Lakeba Group and Mobecom will give consumers a network of 150,000 payment terminals and 50,000 merchant providing them with ample opportunity to make use of their loyalty program.
The role of blockchain in the financial sphere is often widely discussed and with good reason, as many of the advantages that blockchain offers are clearly applicable. The main issue is the ability to execute and apply blockchain innovation in a way that delivers the desired impact. In that regard, the joint venture of the Lakeba Group and Mobecom is seen as one of the more promising projects of its kind.
The two companies are experts in their respective industries, with a wide range of examples of successful projects and a strong customer base. The development of AirCrypto Platform is also strengthened by the participation of blockchain and cryptocurrency legal expert Piper Alderman which will help to oversee the legal compliance of the project.
The development of AirCrypto Platform may become a turning point for the future of customer engagement and the ability for consumers to be better rewarded when transacting with their loyalty points. The benefits of blockchain technology offers the strongest potential to create an engagement platform that can rewrite the efficacy and impact of loyalty programs.