To almost every single retail business, the most significant problem is developing loyalty among customers. Entrepreneurs use several techniques with coupons, discounts and loyalty cards as the most prominent methods. For something this important to businesses, it is a pity seeing most of them getting it wrong mainly because of the many frictions and fractures that leak millions in invested value. Such losses end up undermining both the participation and expected outcome.
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Businesses investing in marketing campaigns that build a profitable brand following shouldn’t despair. The disrupting qualities of blockchain hold the solutions to all the problems plaguing brand loyalty at the moment. And, the Ovato is the platform behind all these promised largesse. The premise behind Ovato is simple; it promises to revolutionize how the traditional loyalty programs work primarily by eliminating the problem of forwarded recordable liability and extended redemption periods.
The loyalty industry is projected to hit the US$ 100 billion mark in 2020 with loyalty management taking almost 10% of this to stand at US$ 6.5 billion. These numbers are enormous by any standard. Besides, there is an increased demand from consumers to have more explicit authenticity and value from the transactions they make. And, it is befitting that the blockchain technology provides an answer to these issues since authenticity is one of the few reasons why Bitcoin, the first blockchain cryptocurrency rose to its current prominence.
The Ovato solution keenly considers the overlay of the retail market as it stands currently. The environment is characterized by millennials who form an ever-increasing portion of the consumer demographic. Unfortunately, only a small segment of this portion of the population is subscribed to the loyalty programs. This revelation may point to the millennials’ disinterest in the regular loyalty programs. For businesses to survive and grow to be competitive, millennials should be roped into the fold.
Ovato seeks to solve problems on both sides of the retail transaction divide by replacing the traditional loyalty programs with a tokenized solution that is convenient and meaningful. Importantly, the answer also seeks to reimagine and add value to the marketing programs that retailers by making them better.
Justification of the Applicable Use Cases
The population of the world stands at slightly over 7.5 billion people. More than half of this population (3.8 billion) have reliable internet access while almost 5 billion have access to some form of a messaging application. Besides, between 5 and 10 million people use cryptocurrencies for the various purposes currently.
These numbers highlighted here above point to a fantastic market opportunity especially considering that traditional loyalty programs are nothing but costly, tax-imposing and liabilities to operators that only afford the consumer only modest value. This sad situation probably is the reason only one-third of the subscribers of these programs are active. However, if the internet has such broad penetration, why not make the most of it?
The current loyalty programs have thrown away US$ 50 billion in debt. Primarily, this amount reflects the value that has never been redeemed. Moreover, the redemption rate now stands at only 50% and declining. Furthermore, customers have grown selective and now just subscribe to loyalty programs that they consider to offer the best value and are flexible and easy to redeem.
Ovato seeks to address these problems by enabling consumers and providers to conduct their transactions in a secure environment. Besides, these solutions hope to reduce the cost of these transactions and in the process, strengthening the residual value of the rewards for everyone involved.
Details of the ICO
The Pre-Sale of the Ovato tokens (OVT) is currently ongoing. With about a week to go, this exercise gives backers a chance to get their hands on this revolutionary Ovato token (OVT) that will enable them to get rewards for everyday purchases as well as access daily deals from both local and national merchants.
During the entire token generation exercise, a total of 33.96 million tokens shall be released. A million of these have been made available in the Pre-Sale with the intention of raising US$ 6 million. Another 16 million tokens shall be sold during the ICO with the hardcap of this sale set at US$ 21.7 million. The remainder of the tokens shall go to the team (14%), bounty program (5%), distribution partners and affiliate marketers, 15%, and 16%, respectively.
The Value Proposition for Ovato Investors
The unique solution that Ovato provides will help merchants reduce the cost of running loyalty programs by almost 90%. Also, it will offer a secure system where anyone can conduct business efficiently from everywhere on earth and create a bigger audience for smaller merchants. These benefits, and the beauty of smart contracts, which shall make it possible to provide promotions and special deals to consumers in real time, make a compelling argument why you need to get the tokens now.
Read more about the Ovato platform on their website and the whitepaper, and subscribe to participate in the ICO here.
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