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Author Topic: Maybe the future of Bitcoin is in Loyalty points.  (Read 804 times)
dannyman
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September 12, 2016, 08:57:24 PM
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Maybe Bitcoin instead of going full mainstream currency needs to enter the masses through loyalty bonus point type programs. Loyalty points were really the original virtual currency....it's a lot less intimidating to the average user to collect 'points' or tokens and redeem them alongside normal fiat pathways.


Say Starbucks gave out digital crypto points with a purchase made through your cellphone or credit card. Starbucks can firstly have tailor made loyalty program that normally is wasteful and inefficient and customers have then used cryto in a way that means they almost don't need to know its Bitcoin.

There are alt coin projects like Coval moving into this area but maybe Bitcoin needs to enter the masses counciousness through the backdoor of loyalty programs? The loyalty industry is btw worth 70 billion annually so it's not a small thing.
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September 12, 2016, 09:30:21 PM
 #2

interesting idea but not likely.
why would companies give out bitcoin as a reward system instead just accepting bitcoin in the first place? also by redeeming the reward bitcoins they would be accepting bitcoin, since they can not check where i got my coin from (technical possible but why would they want to do that?).
the rewards the would give out were just some satoshi almost faucetlike. and bitcoin is already seen as money, which is what you want to avoid in these reward programs. do they not invent these reward points to disguise the real money value?
   

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September 12, 2016, 09:33:21 PM
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Do you mean that merchants should give you some extra coins based on this loyalty points or just colecting coins and then people could get extra discounts? Or maybe there should be some centralized loyalty points service that would give points with every Bitcoin purchase? Would loyalty program attract even more people to Bitcoin?

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September 12, 2016, 09:37:59 PM
 #4

Bitcoin doesn't need to do anything. Mass adoption will happen in a natural way when people realize the benefits Bitcoin offers compared to political fiat scam money. We do not need to launch a specific campaign. Central banks are currently doing Bitcoin advertising for free. Besides that I don't think that Bitcoin is ready for mass adoption yet.

Of course Bitcoin can be used for all the things traditional money can do with a lot of additional applications not directly available with fiat. Loyalty programs can be implemented a lot cheaper by using Bitcoin. However I don't think it makes sense to convert Bitcoin to fiat afterwards. Another detrimental aspect may be that loyalty points are typically preferred by companies as opposed to real money, because points occlude the real (insignificant) amount of the loyalty bonus.

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September 12, 2016, 09:48:07 PM
 #5

the use of points accumulated by consumers bitcoin,would restrict consumers spend your loyalty points, and these points can be equated as money,which payment options can be further enhanced portability,This became the first of the banks that engage consumers in technology,banks will face the risk of loss of potential profit.
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September 12, 2016, 10:33:07 PM
 #6

Maybe Bitcoin instead of going full mainstream currency needs to enter the masses through loyalty bonus point type programs. Loyalty points were really the original virtual currency....it's a lot less intimidating to the average user to collect 'points' or tokens and redeem them alongside normal fiat pathways.


Say Starbucks gave out digital crypto points with a purchase made through your cellphone or credit card. Starbucks can firstly have tailor made loyalty program that normally is wasteful and inefficient and customers have then used cryto in a way that means they almost don't need to know its Bitcoin.

There are alt coin projects like Coval moving into this area but maybe Bitcoin needs to enter the masses counciousness through the backdoor of loyalty programs? The loyalty industry is btw worth 70 billion annually so it's not a small thing.
This is an ok idea in some ways, but personally speaking I think that having Bitcoin be based heavily around loyalty points just adds another layer of numbers on top of an otherwise relatively sound currency and asset. Just look at Ethereum and their Geth or whatever it's called; it's another number on top of everything else and it just isn't necessary.
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September 12, 2016, 10:43:42 PM
 #7

Maybe Bitcoin instead of going full mainstream currency needs to enter the masses through loyalty bonus point type programs. Loyalty points were really the original virtual currency....it's a lot less intimidating to the average user to collect 'points' or tokens and redeem them alongside normal fiat pathways.


Say Starbucks gave out digital crypto points with a purchase made through your cellphone or credit card. Starbucks can firstly have tailor made loyalty program that normally is wasteful and inefficient and customers have then used cryto in a way that means they almost don't need to know its Bitcoin.

There are alt coin projects like Coval moving into this area but maybe Bitcoin needs to enter the masses counciousness through the backdoor of loyalty programs? The loyalty industry is btw worth 70 billion annually so it's not a small thing.
I think a similar better system is exist here on this forum in the form of signature campaigns.It gives people like me an opportunity to earn bitcoin.Most bitcoin related business like mixers,exchanges etc have their campaign here and members use them

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September 12, 2016, 10:50:36 PM
 #8

Well, discounting this thing that IS a currency to just a loyalty program is not the answer. We shouldn't limit what Bitcoin is (and who are "we" anyway to dictate what it should and shouldn't be).

But, you bring up a good point, the technology element makes it hard for some people to even want to understand what bitcoin is. And calling it a currency (although correct and easy to understand) is still abstract to people, simply because there's no government behind it. Every currency every person on the planet has used the most has been issued and controlled by some government. It's tough to think that a currency exists that isn't controlled that way, which makes it harder for people to believe that bitcoin is real.

We need to think of better ways for consumers and businesses to want to get involved with bitcoin. It's the only way to increase adoption.


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September 12, 2016, 11:10:58 PM
 #9

the use of points accumulated by consumers bitcoin,would restrict consumers spend your loyalty points, and these points can be equated as money,which payment options can be further enhanced portability,This became the first of the banks that engage consumers in technology,banks will face the risk of loss of potential profit.

I agree with you if bitcoin is going to implement this loyalty points for sure the service of banks will go crap in the long run. But I guess the stores or merchants are the one needs to implement this loyalty points.

Or else this loyalty points is becoming to your own loyalty with bitcoin and you are the one that going to benefit it in the end.

Just like the early users of bitcoin they've been loyal from the start and hold a lot of bitcoins and as of now they are now enjoying their reward for being loyal.


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September 12, 2016, 11:12:21 PM
 #10

what is loyality poin ?
and who can reward point , and what can use point loyality
because bitcoin anonymous still anonymous, diference altcoin, this several altcoin this dev real human
and folllow promote this coin, selling ico coin and more so dev can control and can reward
but bitcoin is very anonymous, so who can give reward point
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September 12, 2016, 11:59:10 PM
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The ideia is indeed interesting, but maybe a bit ill developed. People using Bitcoin not knowing it is actually Bitcoin... Can't see that contributing too much unfortunately. People need to know what they're actually using, what it does, how it works in order to empower and teach these people on Bitcoin and show them why Bitcoin and how it is different from fiat currencies. Loyalty points wouldn't instruct people this way, it wouldn't empower them in using crypto, and they probably wouldn't relay information to their relatives. Don't really see how Bitcoin could take off with loyalty points...
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September 13, 2016, 12:39:42 PM
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Bitcoin have already proved that it is even better than loyality points, it can be exchanged directly to fiat as well as it can be used just like fiat currency. Bitcoin have already got mass adoption so i don't think this is needed as there are other lots of things that will support the growth of bitcoin naturally.
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September 13, 2016, 12:49:39 PM
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Bitcoin is already is in domination position in remittance market and in online transfers of money because low cost and fast transactions. It has huge potential in online gambling industry and some other services as well. I don't agree that Bitcoin will be used as loyalty points and has future just in this domain. Bitcoin is steadily moving ahead towards good and bright future.
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September 13, 2016, 01:41:52 PM
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This is an interesting concept - essentially the loyalty coins would be mined by the company providing them and consumers could use them for purchases. There would be the benefit that the coins could only be spent at participating retailers as opposed to giving out bitcoin that could be used anywhere, however I'm note sure that there would be sufficient benefit of using a bitcoin style protocol as opposed to the current systems they are working on - the individual user of loyalty programs has no vested interest in confirming that all prior loyalty purchase transactions are valid, nor would they be likely to value anonymity given the limited use of the coin (further, it's doubtful that corporations would want them to be anonymous - collecting user data is a major benefit for loyalty programs.

The main benefit I could see would be that users could potentially trade loyalty points amongst themselves - for example, if you pick up my dry cleaning on your way into the office, I'll send you enough Starbucks Points to buy yourself a latte.
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September 13, 2016, 01:58:01 PM
 #15

a few people a couple years back devised how to 'salespitch' bitcoin to merchants,

they came to a similar conclusion as the OP that selling bitcoin as a loyalty point scheme allows merchants to understand bitcoin without having to know the techno jargon of "decentralized crypto blah" and just accept bitcoin as a payment (spending the points) while also making it simple from the tax/integration part of the retailers head office to not get a headache with 'something new'.

the only issue with this is when actually speaking to merchants in regards to using bitcoin, they seemed ok about implementing it and seen it as a simple process, but then started arguing about contracts to 'own' bitcoin brand and make it a loyalty scheme just for their corporation.

so although bitcoin can be used in an analogy of loyalty points to save lengthy techno jargon, try not to go too far into treating bitcoin as a loyalty point system or the merchants will only see it as a loyalty point system

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September 13, 2016, 02:17:12 PM
 #16

It is possible, but after my consideration, those kind of loyalty points info are stored in the card, maybe bitcoin can also replace those card?

Save the environment if we abandon those cards.
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September 13, 2016, 02:21:09 PM
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The future of bitcoin is being accepted by people as governments get rid of physical cash. Then people will be forced to learn and use bitcoins and those who don't, will be trapped with the official cryptocoin of the new world order, so the sooner you are into bitcoin the better. Just wait and see, people will have to use bitcoin like it or not, if they care about financial freedom.
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September 13, 2016, 08:45:18 PM
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a few people a couple years back devised how to 'salespitch' bitcoin to merchants,

they came to a similar conclusion as the OP that selling bitcoin as a loyalty point scheme allows merchants to understand bitcoin without having to know the techno jargon of "decentralized crypto blah" and just accept bitcoin as a payment (spending the points) while also making it simple from the tax/integration part of the retailers head office to not get a headache with 'something new'.

the only issue with this is when actually speaking to merchants in regards to using bitcoin, they seemed ok about implementing it and seen it as a simple process, but then started arguing about contracts to 'own' bitcoin brand and make it a loyalty scheme just for their corporation.

so although bitcoin can be used in an analogy of loyalty points to save lengthy techno jargon, try not to go too far into treating bitcoin as a loyalty point system or the merchants will only see it as a loyalty point system


Only? Its a billion dollar industry. Coval is about to make this a reality, it's not just an interesting idea at this point, no pun intended. Smiley

https://bitcointalk.org/index.php?topic=1594565.0
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September 13, 2016, 08:47:46 PM
 #19

Dunno about that but I'd bloody love it if cashback sites paid out in BTC. That would be a sweet way of obtaining it for nowt.

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August 15, 2017, 03:19:37 PM
 #20

Maybe Bitcoin instead of going full mainstream currency needs to enter the masses through loyalty bonus point type programs. Loyalty points were really the original virtual currency....it's a lot less intimidating to the average user to collect 'points' or tokens and redeem them alongside normal fiat pathways.


Say Starbucks gave out digital crypto points with a purchase made through your cellphone or credit card. Starbucks can firstly have tailor made loyalty program that normally is wasteful and inefficient and customers have then used cryto in a way that means they almost don't need to know its Bitcoin.

There are alt coin projects like Coval moving into this area but maybe Bitcoin needs to enter the masses counciousness through the backdoor of loyalty programs? The loyalty industry is btw worth 70 billion annually so it's not a small thing.


Thanks Dannyman for pushing this debate. That's indeed a hot topic. Currently, many people are very excited by the crypto hype, and therefore bitcoin in a first place, but very few are actually using it in the real life.

I'm re-opening this debate because we just started LoyaltyCoin, which is a blockchain solution for loyalty programs.

The biggest concern about loyalty programs is that, by essence, it has nothing to do with decentralization, since we are talking about a corporation that distribute points. Decentralization can bring something when we start thinking about exchanging point from one brand to another. In this case, a blockchain can do the work.


interesting idea but not likely.
why would companies give out bitcoin as a reward system instead just accepting bitcoin in the first place? also by redeeming the reward bitcoins they would be accepting bitcoin, since they can not check where i got my coin from (technical possible but why would they want to do that?).
the rewards the would give out were just some satoshi almost faucetlike. and bitcoin is already seen as money, which is what you want to avoid in these reward programs. do they not invent these reward points to disguise the real money value?
   

The point is correct but you are missing an important point about loyalty programs. A retailer is happy to payback a part of his revenue to know its customers. The retailer wants to have an email address, a postal address... or would like to be on the smartphone of its clients. Bitcoin has to be seen as cash, and it would not make sense for a retailer to give some cash back to the customer, unless the merchant has a website, where the customer has an account, on which micro bitcoin transactions would be recorded. In addition to that, using bitcoin as a primary solution would be difficult to sell to retailers.
That could be the case in the future with a bitcoin sidechain, what would be awesome.

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