What is it?
LoyalShopper is LYRA application that provides merchants with ability to create their own loyalty reward programs, gift cards, promotional coupons, and store credits based on crypto tokens.
How does it work?
As a merchant you establish the rate of loyalty reward points that get awarded for every unit of fiat currency spent by your customer (for example, 10 points for every dollar). You also establish the conversion rate of the reward tokens when they are redeemed to actual dollar discount (for example, $1 discount for every 100 reward points). So in this example a buyer who purchased a $100 item, would receive 1000 reward points. The buyer accumulates these points in the Loyal Shopper wallet app. When the buyers shop your store again and want to use their rewards on the new purchases, they open up the wallet and redeem the points – these points convert into a discount code that can be applied at Shopify checkout. In our example, 1000 rewards are converted into $10 discount (those rates are flexible and configurable by the merchant).
How is Lyra solution better than similar ones in the Shopify marketplace already?
Other loyalty rewards, promotional coupons, gift cards, and store credit solutions in Shopify application marketplace are based on a centralized database tied to shopper’s Shopify account. This works up to a point though – if you were to diversify your selling to other ecommerce platforms, you would need a different loyalty provider for each platform. Also you run the risk of the application provider discontinuing support for their application or raising prices unexpectedly. This can have a devastating effect on your business as you will have shoppers with points they earned who can no longer use them. The benefit of the blockchain based solution is that it persists regardless of what happens with the software provider and it is portable across other platforms.
Advantages of crypto based reward loyalty program over traditional solutions:
Ownership: the users are the owners of their reward points and gift cards so they can freely transfer them, sell, or trade.
Omni channel: the merchants are the owners of their reward, discount, and gift tokens, so they can use them on any platform outside Shopify, including other ecommerce platforms, proprietary implementations, and brick and mortar points of sale.
Extensibility: the network is open to third-party developers (including merchants and buyers themselves) so they can offer additional apps and services using the same merchant tokens to both merchants and buyers. For example, alternative wallet apps, or reporting apps, or promotions campaign apps, token marketplace, exchange, etc.
Flexibility: a merchant can decide to accept other merchants’ reward points, promotional coupons, or gift cards, or create a group (even temporary) of merchants for this purpose, and this is very easy to implement on crypto token-based solution.
Reliability: The owner of centralized loyalty of gift card solution can decide to shut down, go bankrupt, or raise prices. Decentralized permissionless network does not go anywhere and cannot change the rules without supermajority support.
Access: some merchants may have a problem with an access to a traditional solution due to their geographical location, political status, financial situation, credit history, etc. Decentralized solutions are open to everyone.
Privacy: the users (buyers) of crypto loyalty, rewards, and gift card programs don’t have to disclose their identity or any other information in order to participate (unless merchant explicitly requires it). No credentials are stored in centralized provider’s database like in traditional solutions.
Trending: psychological factor – it’s fun to deal with crypto tokens rather then boring abstract points, and no one has offered such a solution yet.