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Why would I want to collect points at dozens of retailers instead of collect points at one that I can use across the board? Even with secondary markets all you

Why would I want to collect points at dozens of retailers instead of collect points at one that I can use across the board? Even with secondary markets all your doing is multiplying the effort and lowering the likelihood of ever collecting enough for a payoff.

DenisM 12y ago
Each merchant has a better idea of what the loyalty is worth to them, so they can offer bigger loyalty discount than a centralized payment card could. Biggest kick-back is the best kick-back! As to the management overhead, it doesn't have to be - it's all just bits. There is no reason software couldn't just sell/trade your points for you automatically.
- sanswork 12y ago
  That would require each merchant to do the research to determine optimal loyalty rewards. Fine for very large merchants but unreachable by most small ones. End result is less loyalty systems as it is too difficult to calculate ROI for small retailers. Who is going to run the marketplace? What is their overhead going to be? It would require quite a few chain type trades because situations like you point out with getting some points on vacation would be difficult to trade otherwise. (Why would someone in LA have points for the small shop I frequent in NYC with which to purchase my points for XYZ in LA?). That's ignoring the fact that most stores would be opposed to such easily traded points as unspent points are a major boon to them.
  - DenisM 12y ago
    >Who is going to run the marketplace? Same as the bitcoin itself - nobody, it's just software (that needs to be written yet). You don't need a chain trade, just list you points for sale for bitcoins directly. There might be no one to buy it right now, but there will be someone tomorrow or a week later, who is going into that restaurant, and loads up on the points before they get there. >unspent points are a major boon to them Of course! The points must decay or expire. It would be foolish to carry debt without expiration. There is nothing complicated about deciding how big your loyalty program is going to be. Start off at your current credit card processing rates about 1.5%, and go up from there if you feel generous (like the stake house I talked about earlier), or based on repeat volume for a given customer (e.g. spend $100 get $10 back). Most places will be fine with a default for a given industry (e.g. large for restaurants, small for sandwich shops).
    - sanswork 12y ago
      Almost all bitcoin trades are done through 3rd party exchanges at the moment. In your example selling them direct for bitcoin you'd need someone to facilitate and escrow the trades. They'd obviously want some payment for it on top of expenses. >Start off at your current credit card processing rates about 1.5%, and go up from there if you feel generous But what if 1% is a better ROI? Or 3%? It's not difficult to pick any number. It's difficult to pick an effective one.

DenisM 12y ago

Each merchant has a better idea of what the loyalty is worth to them, so they can offer bigger loyalty discount than a centralized payment card could. Biggest kick-back is the best kick-back! As to the management overhead, it doesn't have to be - it's all just bits. There is no reason software couldn't just sell/trade your points for you automatically.

sanswork 12y ago
That would require each merchant to do the research to determine optimal loyalty rewards. Fine for very large merchants but unreachable by most small ones. End result is less loyalty systems as it is too difficult to calculate ROI for small retailers. Who is going to run the marketplace? What is their overhead going to be? It would require quite a few chain type trades because situations like you point out with getting some points on vacation would be difficult to trade otherwise. (Why would someone in LA have points for the small shop I frequent in NYC with which to purchase my points for XYZ in LA?). That's ignoring the fact that most stores would be opposed to such easily traded points as unspent points are a major boon to them.
- DenisM 12y ago
  >Who is going to run the marketplace? Same as the bitcoin itself - nobody, it's just software (that needs to be written yet). You don't need a chain trade, just list you points for sale for bitcoins directly. There might be no one to buy it right now, but there will be someone tomorrow or a week later, who is going into that restaurant, and loads up on the points before they get there. >unspent points are a major boon to them Of course! The points must decay or expire. It would be foolish to carry debt without expiration. There is nothing complicated about deciding how big your loyalty program is going to be. Start off at your current credit card processing rates about 1.5%, and go up from there if you feel generous (like the stake house I talked about earlier), or based on repeat volume for a given customer (e.g. spend $100 get $10 back). Most places will be fine with a default for a given industry (e.g. large for restaurants, small for sandwich shops).
  - sanswork 12y ago
    Almost all bitcoin trades are done through 3rd party exchanges at the moment. In your example selling them direct for bitcoin you'd need someone to facilitate and escrow the trades. They'd obviously want some payment for it on top of expenses. >Start off at your current credit card processing rates about 1.5%, and go up from there if you feel generous But what if 1% is a better ROI? Or 3%? It's not difficult to pick any number. It's difficult to pick an effective one.