Getting for your purchases the loyalty points that can be exchanged for free goods or services amazes and encourages to spend more. Yes, in theory, that sounds cool. But in fact, collecting a significant amount of points could be a difficult game, and spending bonuses could be even a bigger challenge. 57% of customers abandon loyalty programs because it took too long to earn points or miles, the Colloquy Loyalty Census revealed.
Really, it’s true. Imagine that you participate in the loyalty program of Costa Coffee. Mirror calculated that you’d need to buy 27 cups of coffee to get a free beverage under their reward terms. It will take you quite a long time to amass a required number of points, especially when you’re not an everyday visitor. It’s annoying, isn’t it?
Or, for example, a participant of the Miles & More program, which is run by the airlines’ alliance, will earn 2,000 miles for the flight from London to Venice. The passenger will get a free air ticket when he earns 20,000 miles. What should the traveler do if he is not going to fly anymore? Let these miles burn!
The second challenge is expiration dates. Thus, if you make a purchase at Sephora, you’ll receive bonus points that have an 18-month term of validity. If you do not plan to return to this store, you will lose your points. As for miles, they are usually valid from 20 to 36 months or even zero out once a year, on December 31, which makes them useless if you’re not a frequent flyer.
One more problem is too complicated and confused conditions the loyalty programs sometimes lay. Obviously, clients hardly want to deal with the schemes like “10 points are $1 and $30 is a 50% discount for the next purchase in November.” Instead, customers will choose to give up.
Also, companies often offer a limited set of goods, on which people can spend their bonuses. This definitely makes such points waste of time if buyers don’t need the provided products. Besides, people have a lot of loyalty cards and simply forget to employ their rewards.
As a result, customers cannot make use of their benefits and purchase really needful things while companies throw millions of dollars on ineffective and vain loyalty programs. People’s interest in such programs could be increased if they had an opportunity to gather all these points and miles in one place and spend them at their discretion at any time. Is it indeed possible?
“Yes,” answers a Korean startup M2O. It has developed a solution that can cope with all these issues. For this purpose, the company utilizes the unlimited capabilities of the most discussed and most promising discovery of recent years – blockchain technologies and cryptocurrencies.
The idea of the M2O project is to pick all the clients’ loyalty points and miles and put them into one repository, the so-called “Mileage Bank.” Powered by blockchain, this place will allow customers to securely store their bonuses here and freely spend them without worrying about any expiration dates.
Bringing their plans into life, the project team has launched an internal cryptocurrency – M2O token, which opens a wider scope of actions for customers. They can convert their rewards into digital money and trade, exchange, as well as make payments or contributions using it. To make this process more convenient and smoother, the M2O project has created M2O wallet.
Put this another way, customers’ bonuses turn into global integration points with currency value. People will be able to spend them as cash anywhere at any time. The M2O project is going to issue prepaid Mastercard crypto cards. Users should at first exchange their points and miles into M2O tokens and then use them as cash at M2O affiliated stores.
Putting its developments into practice, the M2O project removes borders between the countries. People can earn their points everywhere, keep them in one place, and then unlimitedly use them as fiat. The team is sure that their solution will benefit both companies and customers. Being able to turn their earlier useless points into material assets and dispose of them at their own, users will be eager to get a loyalty program membership. This will inevitably encourage vendors to develop new interesting proposals and make a profit.
About the Project
The M2O project is targeted at building a platform that integrates miles and points based on blockchain. It aims to aggregate all the user’s rewards in the reliable “Mileage Bank.” The customers will be able to convert their bonuses into M2O tokens and spend them as fiat at a range of stores affiliated with the project.
This solution developed by the M2O team will allow people to enjoy their bonuses at any time and any place not thinking about their expiration dates. The project team has created a secure and easy-to-use M2O wallet to make transactions quicker, more effective, and more secure thanks to blockchain technology.
M2O will start the global ICO campaign soon. It will begin on October 29 and last until November 23. People can buy 30,000 M2O tokens at the price of 1 ETH, which is the minimum contribution during the token sale.