The DragonBite Disruption
The Importance of Brand Loyalty
Certain brands dominate specific industries. For example, Starbucks is a dominant brand in the coffeehouse industry in the same way that Apple is in the electronics space. Brand influence is directly affected by marketability, which in turn impacts sales and revenue. This is why Coca Cola invests around 4 billion dollars each year promoting brand loyalty . According to statistics, 1.6 trillion dollars per year is lost by businesses when customers switch brands. Numbers show that existing customers contribute to 65% of a company’s business while 80% percent of a company’s future profits will come from just 20% of their existing customers. Not to mention that bringing in new customers can cost as much as 16 times more compared to retaining current clients . These data are compelling factors that support the importance of promoting brand loyalty.
The Need for Loyalty Programs
A loyalty program is one of the marketing strategies employed by companies to promote brand loyalty. It is a form of virtual currency that provides incentives as a way to attract and retain customers . Data shows that 87% of shoppers want brands to offer loyalty programs which directly correlates to the steady uptrend of loyalty memberships the past years. In fact, over 90% of companies now have some form of loyalty program in place with over 3.3 billion memberships in the US alone . This shows that loyalty programs are an effective way to influence consumer shopping decisions.
The Limitations of Loyalty Programs
The value of loyalty points, coupons and rewards in circulation globally is estimated to be around 1.6 trillion dollars, including $703 billion in gift cards, $564 billion in cryptocurrency, $316 billion in loyalty points or mileages, and $50 billion in gaming, exceeding that of US dollars in circulation . Unfortunately, these digital assets largely remain idle. Because inasmuch as loyalty programs are beneficial for merchants in increasing revenue, they leave much to be desired for consumers. Loyalty programs engagement among customers is considerably low. In fact, these assets’ utilization rate is only at 7%, meaning 93% is unused and ultimately wasted. This is mainly due to how loyalty programs have been set up. Since these incentives are a liability to businesses, they often have a limited time frame for use. Additionally, these assets have intrinsic boundaries and are scattered across different programs making them nearly impossible to consolidate for consumer-dictated redemptions. So while there is legitimate demand for loyalty programs, there needs to be drastic improvements when it comes to implementation in order to ensure higher asset utilization and greater customer satisfaction.
One project has found the lapses within the loyalty program landscape and offers a revolutionary answer in the form of a unified platform for users to redeem and spend their loyalty points. DragonBite is an open and decentralized universal digital asset management platform powered by blockchain technology . The DragonBite digital wallet aims to be a one-stop-shop for members to store digital assets, including loyalty points, e-vouchers, e-coupons, gift cards, air miles, and in-game assets, into a universal loyalty point system (BITE point). BITE points can be exchanged and redeemed in over 50,000 merchant partners with over a million user base, including supermarkets, restaurants and coffee shops. Moreover, BITE points can be converted to cryptocurrencies, lowering the barrier of entry for small size crypto investors. For the first time, loyalty points from different programs can be earned, redeemed and spent using one single application, eliminating loyalty program inefficiencies while improving customer engagement. Find out more about DragonBite here .
Joining the Disruption
The DragonBite project is no longer an untested concept but an ongoing and operational ecosystem with a clear and impressive roadmap to capitalize on a massive business opportunity. With decades of experience in payment, digital banking and investment banking, the DragonBite team is initiating a revolutionary disruption in the loyalty program industry by tying it up to blockchain technology. With the bridging of cryptocurrency and real world applications, an extensive cryptocurrency adoption is likely going to be the inevitable outcome.