Under this new “open loop” decentralised scheme, merchants could ask Gabro to issue their own branded Merchant Token only to their target segments, thereby creating a much higher possibility of customers using them. Loyalty operation costs would be much lower for the merchant than if they set up their own system. Merchants also benefit from increased sales resulting from greater customer loyalty and stickiness, with added insights from using our O2O analytics platform.
The institutional buyers (e.g. credit card companies) benefit from a reduction of balance sheet “liability” as there are now many more redemption options in addition to just air miles. Furthermore, no single LPO can dictate the price of the reward points. As a result, utilisation of our Gabro token would be much higher and fewer “accruals” need to be made.
Loyalty program operators
The LPOs benefit from lower customer acquisition costs with this larger open loop system. Rather than spending time sourcing offers from merchants who are already overwhelmed with many LPOs lining up to promote them, they can focus on analysing their members to encourage repeat purchases. Joining the Gabro platform provides them with an effective 1:1 digital marketing channel that no longer makes the activity a “me-too” proposition without pertinent strategy.