Blockchain-based Platform Ovato Finds a Way to Reward Loyalty
| Updated by Sofiko Abeslamidze · 5 min read
Disrupting the multi-million dollar industry, Ovato utilizes blockchain technology to reduce the loyalty program costs by 87% and also ensure the transparent and secure manner of processes.
Today with so many options available in physical stores and online, keeping customers devoted to your brand without spending a fortune on marketing is no easy task. Loyalty programs designed to maintain customers’ enthusiasm are beneficial treatments that some exclusive clients receive from merchants, encouraging them to go back and purchase further items and services with frequency.
Some of the proposed deals and incentives may include advanced access to new products, free merchandise on occasion and additional discounts. Customers who are willing to participate in particular programs provide their personal data in return for a unique ID or a membership card implying a different treatment comparing to regular clientele. It can be a win-win situation for all the parties involved.
However, digital consumption is rigidly evolving, and it becomes difficult to find an advertising approach that merits the audience’s attention as well as saves on marketing expenditures. One of these ways is influencers, as it is a strategy with known success, significant potential and returns.
The loyalty rewards industry can experience fractures and frictions that leak value and weaken people’s participation. Fortunately, the blockchain technology appears as a solution to alleviate those issues in such a way that provides trustworthiness and reliability. Ovato takes advantage of the blockchain technology to optimize the multi-million dollar loyalty rewards industry.
Ovato bases on the strategy that aligns industry stakeholders, consumers, and investors. Its core principle makes it possible to conduct transactions and fulfill loyalty programs elements in the fastest and smoothest way, while leaving behind the old bureaucracy of the 20th century. On the verge of blockchain revolution, business enterprises are no longer required to pay fees everywhere including the multi-billion dollar rewards and loyalty industry.
Customers, in their turn, long for a system that promotes equality and choice, using technological and new creative resources and blockchain technology provides such an environment. Considering the fact that about 3.3 billion loyalty program subscribers in the United States have stored points, assets and miles worth nearly $48 billion, there needs to be a platform to make sure those assets can be easily manipulated or used.
How Ovato Works?
Ovato represents the first decentralized ecosystem to discover, create and analyze advertising campaigns with social media influencers owing to the implementation of the blockchain technology.
The overall Ovato project is set to bring the world’s total social media audience, roughly 2.88 billion people, into an environment that uses the blockchain technology and smart contracts to recognize the contribution of influencers in promoting the shopping economy around the globe with rewards and loyalty benefits.
Ovato coin holders are eligible to receive perks from their everyday purchases and merchants are able to save time while addressing their marketing strategies directly to the social media influencers. On the other hand, charity donations that result from shopping are guaranteed to achieve to their destinations bypassing intermediaries.
A major point of deviation from the current loyalty reward system is that Ovato empowers merchants to define the portion of their gross profit margin designated for their loyalty program, which is then delivered instantly to the recipient upon enrollment and purchase. The value is transferred digitally to the participant’s mobile device at the point-of-sale directly through the blockchain.
Marketing researches reveal that merchants reduce costs of their loyalty-rewards program by as much as 87 percent owing to Ovato, while at the same time the project creates a secure platform to conduct daily business anywhere in the world easily.
The Ovato Token Details
The Ovato network’s core functionality will be maintained by a utility token named Ovato token (OVT). It successfully resolves the issues akin to loyalty rewards programs worldwide, since with the OVT token, both businesses and consumers will have significant incentives to perform transactions in a securer and cheaper way but still strengthen the residual value of benefits.
According to the project’s roadmap, only a limited amount of OVT tokens will be issued and then distributed through mainstream merchants to their existing customer base, thus creating a network effect beneficial to anyone holding them. However, unlike Bitcoin the OVC token will not be available for mining. Instead, there will be an initial coin offering.
Seeking to promote OVT use and expand the platforms’ operations while developing the existing environment, the Ovato team calculated that it needed to raise $30.35 million via a public token sale event, which already started on February 28 and will be live until May 31. The price of OVT tokens available is varying from $0.60 cents to $2.00 USD per unite. At the press time, Ovato offers a wide range of juicy bonuses for early contributors.
A crowdfunding campaign is going to raise enough money to secure the development and release of the Ovato platform and system. After ten days of the finalization of the Initial Coin Offering, the system will release the OVT tokens, which are Ethereum-based of the ERC20 value variety.
Sofiko is a freelance fintech copywriter at Coinspeaker.
With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.