Switching from Transactional Loyalty to Emotional Loyalty
The constant evolution of retail technology is creating a trove of opportunities for new players while making digital transformation imperative for incumbents. The competitive structure of the industry is undergoing a drastic change, enabling tech-enabled competitors to steal share. Experience-based models are getting an edge over ‘transactional’ loyalty, forcing retailers to drive consumer loyalty through emotional connections.
On average, each shopper is involved in more than six loyalty programs as per Deloitte’s Retail Outlook 2019. And, driving true loyalty is only becoming more difficult. With this in mind, retailers should optimize loyalty programs so that the elements of personalization and exclusivity come into play to get customers hooked.
Gone are the days when personalization in offline retail was considered to be impossible, due to the lack of a viable solution. However, emerging technologies including Artificial Intelligence are empowering physical retail businesses to segment customers based on their value only to provide a differentiated experience and foster loyalty.
Typically, loyalty programs are built around points and discounts, which can only be used with that particular retailer within a particular time frame. Apparently, this is leading to the poor performance of traditional loyalty programs. A study on the US coupon market reveals that customers redeemed only about 2 billion coupons out of 307 billion that were distributed in a year. Beyond the traditional loyalty benefits, modern-day customers are looking for a marketplace where they can use their loyalty points, leaving all those worries about expiration dates.
Nucleus Vision’s proprietary technology is an epitome of this personalization model for physical stores. The company embarked on leveraging a combination of AI, IoT, and Blockchain to reshape customer experience in brick-and-mortar stores. Understanding this aspiration of customers, Nucleus Vision has created a decentralized ecosystem, where retailers and customers are the stakeholders of a token-based loyalty program. Retailers in the nucleus vision ecosystem use nCash, the company’s own utility token, to reward their customers under an interoperable loyalty program. The term ‘interoperable’ refers to the provision for customers to use their nCash tokens with any retailer in the ecosystem in exchange for goods/services.
The concept of Nucleus Vision and its interoperable loyalty program to disrupt the retail industry received the attention of prominent investors from the silicon valley, including Tim Draper. Hackernoon recognized nCash as one of the top ten utility tokens with good potential in the future. Enhancing the utility of its token and ensuring real value to its holders, Nucleus Vision has been working out a well-defined plan. The company has brought in global retail brands from the fashion and apparel industry to touch a massive population. Adding to that, the company also onboarded several key players from a variety of industries including quick-service restaurants and big-box stores.
While its technology specifically aims to revolutionize offline retail, Nucleus Vision cultivates the interoperable loyalty program to reinvigorate customer loyalty in online and offline retail as a whole. To that end, the company has been making considerable progress with e-commerce businesses from several parts of the world entering the ecosystem.
The cost to increase market share in the retail industry is growing significantly and it is indispensable to adopt a genuine approach to drive consumer loyalty. Nucleus Vision and likewise technologies are empowering retailers to look beyond transactional loyalty through their innovative personalization models.
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