Imas Kurnisy: IOU: Blockchain-Based eCommerce Loyalty System Platform

IOU APPROACH

IOU reinvents existing loyalty systems so as to produce a lot of flexibility, control, and plenty of a lot ofedges for Merchants so as to ensure the best attainable level of client satisfaction for the incurred sellingexpenditures.

IOU “loyalty system” permits business house owners to form a brand new level of interaction with shoppersand, most significantly, provides the chance for shoppers to freely exchange their purchased IOUs with alternative shoppers for alternative IOUs that square measure required a lot of for those commerceparties.

IOU AIM

IOU reevaluates existing loyalty frameworks in request to permit larger ability, control, and improved blessings for Merchants with a specific end goal to form certain the foremost astounding conceivable level of consumer fulfillment for the caused advertising consumptions. IOU "loyalty system" permits entrepreneurs to make another level of collaboration with customers and, above all, offers the open door for purchasers to uninhibitedly trade their IOU Offers with fully totally different customers for varied IOUs that unit required extra for those exchanging parties. IOU Peer-to-Peer (P2P) stage giving new open doors for every bourgeois (Business Dealer) on the globe with connectedness loyalty system association, collaboration with shoppers, investment fascination, and gain development by the ways for provision its own unreservedly tradable IOUs (IOU Crypto-Obligations /"IOU-CO").

How IOU Work?

IOU offers complete straightforwardness exploitation Blockchain for its cluster Loyalty offers with clear visibility, security, speed of method and traceability of trasactions through the decentralized enter all things thought-about. IOU is giving Merchants and shoppers clear focal points over the customary internet business condition influencing dealings to worth effective and secure whereas building extreme trust amongst Merchants and shoppers. Rating component would facilitate a trust considerably additional. Cost-adequacy of dealings and worldwide reach of purchasers beat the customary digital payment ways as a result of it evacuates the middlemen/payment processors that take a heavy cut. Not merely shoppers would feel secure and notice noteworthy assets yet in addition, they may utilize their obtained IOUs as real businessenterprise resources that they are aiming to have the aptitude to exchange with fully totally differentshoppers or offer on the trade.

This may be a vast advantage of IOU Platform. Loyalty issue is another tremendous advantage enabling the two purchasers and merchants to urge salaried for creating prime of the road, quality offers and exchanges on IOU twenty four This report is entirely personal, secret and individual to its beneficiaries and ought not be replicated, distributed or duplicated in entire or to a restricted extent, nor head to any outsider. Trade merchants and shoppers will have the aptitude to permit variety of IOUs for those in would like and notice salaried for charitable exercises. The organization would likewise place gift asks for on extraordinary causes and would compensate Merchants and shoppers, and in additionmatch such gifts to profit those causes.

GROUPON ISSUE

Groupon, a real success story of pre Blockchain era, has taken advantage of the collective shopping forpower of its users to supply deep discounts for services and merchandise. The business model could be acombination of coupon discounts and cluster shopping for. Coupon discounts and cluster shopping forsquare measure recent ideas that start to the late nineteenth century and early twentieth century, severally. In 1887, Asa Candler, a partner with the Coca-Cola Company, was the primary to utilize coupon discounts as an ad strategy. Candler created use of assorted avenues like magazines, mail, workers and sales representatives to distribute complimentary coupons to potential customers.

With over 100M total subscribers across over five hundred cities in additional than fifty countries, Groupon is that the largest player within the native deals market. the corporate, a pure-play on the native deals section with a tested success. Groupon offers “Deal of the Day” and different promotions on their nativemarkets and thereby guaranteeing revenue and enormous variety of consumers for the native businesses. native businesses don't ought to pay direct fees and want to share revenue with Groupon provided that the deal achieves the minimum subscription. Groupon offers extended savings to shoppers UN agency willdiscover services/merchandise that weren't famed to them earlier.

Groupon backbone of success has been its sturdy partnership that it created with native businesses breaking into new markets by researching the native market and characteristic successful native businesses thatsquare measure approached by the Groupon sales personnel. Groupon is best suited to high value|fixed charge|fixed costs|charge} businesses and business wherever the client acquisition cost is extremely high and businesses ought to advertise a great deal and their deals supply them a channel to succeed in out a target client primarily based within the native market while not paying any direct fees. Groupon is additionally best suited to businesses thriving on repeat customers like spas and restaurants.

With a lot of success, however, Groupon has met several challenges:

• native Businesses ought to fathom the economic science of the Deals. In some cases, native businesses offered deals during which there was no cap on the amount of subscribers and therefore the deal was sold. In such cases, native businesses concluded up being unable to fulfill the delivery expectations and incurred Brobdingnagian losses. Businesses with unprofitable promotions have reportable low rates of paying by Groupon users on the far side the deals face worth and low rates of come to the business once more at full worth.

• Low Barriers to Entry and Low change prices. Groupon’s business model is straightforward to repeat, barriers to entry for the native deal market square measure low and change prices for shoppers and nativebusinesses square measure low.

• Competition from different player is chop-chop increasing to any or all cities during which Groupon is giving deals. Groupon may additionally face competition from players within the native review & search house like Yelp, that has started giving deals.

• client retention is tough. whereas most of Groupon shoppers square measure deal-driven and not long-run shoppers its retention rate is regarding two hundredth which needs the corporate to pay heavily into sales and selling valuable resources. Groupon’s client base consists of deal seekers and cut price shoppers UN agency aren't willing to form purchases on the far side the deal. the bulk of users build once purchases at Groupon.

• Low revenue share isn't property for its merchandiser partners. Groupon takes a 40%–50% of the revenue from its deals. This arrangement isn't property within the end of the day as merchants learn quickly to maneuver into search and different competitive advertising alternatives driving revenue off from Groupon by charging less.