As part of our series to educate users about the application of Blockchain within distinct industries, our team reached out to Netkoin to understand Blockchain-Based Loyalty Programs. For the uninitiated, Netkoin is a player within this space, offering cryptocurrency-based loyalty programs. Their ecosystem includes offerings for both retailers and shoppers. They created the NetKoin token (NTK) which is tradeable on multiple exchanges including Mercatox, IDEX, Crex24.
We interviewed Matthew, co-founder of Netkoin, and gained deeper insights into how blockchain is revolutionizing loyalty programs.
What is NetKoin? How did this come into being?
Netkoin is building a universal loyalty rewards platform where businesses and customers are mutually rewarded by participating. Businesses want to create meaningful relationships with potential customers resulting in sales and customers require value when engaging with businesses. For brick and mortar businesses foot-traffic is key. Netkoin enables business owners to drive nearby customers into their stores by incentivising them through cryptocurrency rewards.
Customers can earn NTK tokens by stepping-into these stores, scanning product barcodes and purchasing items. For online businesses, Netkoin incentivises customers to buy their goods and services, complete their micro-tasks such as completing surveys, downloading their app etc.
Customers can redeem rewards with the NTK they have collected from participating businesses on the app, trade NTK on cryptocurrency exchanges and send/receive between each other. Over the last few years, we have developed an ecosystem of applications for both businesses and customers. To participate businesses will use our business management platform to distribute NTK rewards to participating customers and manage their stores advertising on Netkoin’s mobile application.
Customers can participate by using Netkoin’s mobile app to earn NTK, receive location-based ads and redeem rewards from participating businesses. Customers can also manage their cryptocurrency through the multi-token wallet within the app.
How is it different from traditional loyalty programs? What are the NTK and LIQUID token?
Traditional loyalty programs have a number of issues including There are a limited amount of places where you can spend your points, points cannot be transferred between people, you need to spend an unnecessary amount of money to earn a disproportionate amount of points and there are an unlimited supply of points which typically have no real value
NTK and LIQUID are both ERC20 tokens on the Ethereum blockchain. The NTK token has several use cases including:
Peer to peer transactions
NTK tokens can be exchanged between peers via the Ethereum blockchain.
Step-in
Shoppers can earn NTK by stepping-into stores listed on Netkoin’s mobile app.
Business Management Platform
Specific features in the business management platform will cost an NTK fee.
Scanning barcodes
Shoppers can earn NTK by scanning specific in-store product barcodes.
Brick and mortar retail purchases
Shoppers can earn NTK by purchasing specific products or services listed on Netkoin’s mobile app.
Online purchases
Customers can earn NTK by purchasing goods or services online.
Microtasks
Customers can earn NTK by competing microtasks such as surveys, downloading apps etc.
Exchanges
NTK tokens can be withdrawn from Netkoin’s mobile app and traded on multiple cryptocurrency exchanges.
Netkoin LIQUID is the secondary token which will further extend the NTK’s token utility. There will be an update soon regarding LIQUID.
How is the shopping experience different for a user with Netkoin?
Netkoin’s mobile application aims to make retail shopping relevant and rewarding for shoppers based on their location. The mobile application contains numerous features and filters to provide the shopper with a personalized retail shopping experience. Users can earn NTK from participating businesses, redeem rewards and manage their cryptocurrency all within one application.
Are retailers willing to adopt blockchain-based loyalty programs? What hurdles or challenges do you face in this regard?
Businesses likely have a perception that blockchain technology is complicated and difficult to adopt for both them and their customers. Most blockchain applications have poor UX (user experience), that those unfamiliar with cryptocurrency and blockchain technology would find it difficult to navigate and use. The platform we developed for businesses eliminates the complex user experience usually seen with cryptocurrency and blockchain-related applications.
The sign-up process for businesses is straightforward, they simply claim their business by logging in with their Facebook account associated with their businesses Facebook page. Once signed up they can begin participating in Netkoin’s universal loyalty rewards system without any prior knowledge of cryptocurrency and blockchain technology. Therefore, we believe Netkoin is in the best position to be the blockchain-based loyalty program adopted by the public.
Where do you see the industry moving? How is Blockchain going to revolutionize loyalty programs?
Over time I believe traditional loyalty programs will eventually become obsolete or migrate towards blockchain-based loyalty programs. Although I believe there should be a focus on loyalty programs which provide a platform which can be universally accepted by retail businesses and customers.
Anything else you would like to add about NetKoin or your future roadmap?
Netkoin has already delivered the beta version of Netkoin’s mobile app and business management platform. You can currently trade Netkoin (NTK) on multiple exchanges including Mercatox, IDEX, Crex24. You can learn more about Netkoin here: https://www.netkoin.com
