I couldn't agree more. I don't know anyone would switch over...

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IsuruNeel

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17/06/18

18:24

Post #: 33766483
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Originally posted by canemcalcitro ↑

This is a perplexing line of argument with very few concrete explanations of what these new systems _do_.

Loyalty programs are "broken as designed" i.e. the points are gamified tokens that aren't worth very much but seem compelling to encourage people to spend their money more with one provider. Trying to make them more fungible across different companies is solving a non-problem: if I can move Qantas Points around 100 different companies and spend them on random stuff how does that help Qantas?

As for whether it costs companies "millions and millions of dollars" to solve the *technical* issues of moving points around between Woolies and Qantas and a few different credit card companies... I don't think so. Currently their databases presumably call each other and send some data. Blockchain might be good for this (or not) but a distributed ledger isn't going to revolutionize this. I would imagine most of the complexity of these kind of alliances is in marketing, legals, etc. The distributed ledger is more compelling is there is a massive heterogeneous market involved, but that's exactly what a loyalty program isn't.

No-one has *ever* been able to coherently describe the problem that Loyyal or similar blockchain plays are solving here, explain how it was solved before and why distributed ledger technology will be much cheaper, or explain how the new offerings have anything to do with the incentives for companies running loyalty programs to start with (i.e. get you back to THEIR product not provide you with easily spendable magic points that you can spend in 100 different places).

As I've said before, if companies want to provide an easily tradeable, low-overhead form of 'reward' and don't care about whether it's tightly coupled to their own goods and services (or a small, carefully chosen network of companies' good and services), they can use this earth-shattering concept called a 'cash discount'.

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I couldn't agree more. I don't know anyone would switch over from a system that works to a system that can't be explained without using impenetrable jargon, complex diagrams and somewhat fatuous statements of value addition.

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I couldn't agree more. I don't know anyone would switch over...

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