HOMEGROWN loyalty solutions firm Appsolutely Inc. is aiming to address gaps in the fast-growing loyalty industry with the introduction of its universal loyalty platform in the Philippine market.
Patrick Palacios, Appsolutely chief executive officer, said that while the loyalty market in the country has grown, the participation of consumers remains low.
“While the loyalty industry continues to grow, participation and redemption rates remain low because of convoluted mechanics, lack of flexibility, and fragmented options for redemption,” he said. “The success of any loyalty and rewards program depends on how easy earned rewards can be redeemed,” he added.
Harvey Perello, chief digital officer at Appsolutely, cited several factors preventing consumers from maximizing loyalty programs.
At a media briefing in Mandaluyong City on Wednesday, Perello said an average person manages at least 10 loyalty programs and it is “very difficult for consumers to manage all these loyalty programs because there’s a lot in the market and we don’t know which one to take advantage of.”
“[Also], perks are limited because when a consumer signs up for a loyalty program, what happens is that they can only use the privileges offered by that same company. But most of the perks remain unused until the program expires. Your card expires as well as your membership, still you got nothing,” Perello said.
Because of such factors, consumers stop seeing the value of using loyalty programs. The outcome is “not good for businesses” since brands strategize loyalty programs in order to engage customers to drive business growth, he said.
Appsolutely’s platform aims to centralize all loyalty programs. The new platform will introduce a new digital token called ‘LoyalCoin’ that replaces traditional reward points.
This is a “universal loyalty ecosystem that uses points to redeem anytime, anywhere, an omni channel with multiple retailers,” he said.
“Definitely, points are a lot more flexible and can be easily used anywhere. It’s going to make people actively use their rewards points, thus making sure they are very satisfied as costumers. In return businesses can increase their revenues,” Perello said.
Palacios said the company’s offering would eliminate the limitations of customer loyalty programs with Appsolutely’s “unified blockchain loyalty ecosystem,” where rewards from different retailers can be easily used to pay for products from other brands.
Appsolutely is using the blockchain technology which allows “multiple parties (program providers, customers, administrators, among others) to interact without intermediaries and without compromising privacy.”
“Blockchain has the right characteristics that will make it possible for brands to provide loyalty programs that allow consumers to choose where they want to use their rewards seamlessly,” the company said.