Within the machinery of global eCommerce, customer loyalty programs stand out as a squeaky wheel needing a dose of grease. It’s that same noise — a virtual cry for help — that drew our attention towards the industry.
As Southeast Asia’s first blockchain venture builder, we use cutting-edge tech to disrupt legacy business models. Where commercial enterprises fail to keep customers happy and their accounts secure, we see opportunities for growth.
And thanks to the profound social reach of our new business partner — MYMEDIA MYANMAR — the potential for disruptive improvements is enormous.
In other words, our new venture enjoys a massive headstart by tapping into a well-established userbase. For our part, we’re providing the technology — powered by Komodo Platform’s Antara Framework — to assemble a market-leading online rewards portal.
Plus, per our business model, we’re replicating a successful business and putting it on a chain. This time around, our target is Swagbucks, a rewards program earning hundreds of millions of dollars by giving cash and gift cards to its loyal members.
In a recent video, our CEO identified a significant downfall plaguing the rewards industry at large. Here it is, just in case you missed it:
But protection against account intrusion is only one aspect of our overall blueprint. Without further ado, let’s examine how RedFOX Labs is injecting blockchain tech into a business model riddled with fraud and indifference towards customers.
Fighting Back Against Account Takeover (ATO) Attacks
In yet another form of identity theft, an ATO attack is when a fraudster gains access to one of your online accounts. Whether it’s your email, bank, or — you guessed it! — loyalty rewards account, successful attacks mean there’s someone out there pretending to be you.
Now, this style of thievery is somewhat of a puzzle. ATO attacks are difficult to trace, and their damage is severe. Tallied across all sectors of electronic commerce, ATOs are a growing menace to the system.
In 2017, losses from account takeovers reached $5.1B, more than double the $2.3B sustained in 2016.
Ironically, successful attacks often stem from customers themselves. You see, when online shoppers create weak account passwords, it doesn’t take much for a bot to force its way inside.
And, for those who use the same credentials for multiple accounts, a single breach can snowball into an avalanche of fraud. Think altered mailing addresses and a host of unapproved orders. Not to mention some creeper and their cronies knowing where you live.
How does blockchain help? For starters, there’s no centralized database storing customers’ rewards points. Theft from ATOs is rarely singular. While some crooks target individuals, others go after data lying in a server room — a virtual treasure chest of private information.
While a distributed ledger protects the inner components, we can’t forget about the front door. If customers prefer to leave it (almost) wide open, we’ll shut it for them. Rest assured, we’re employing Komodo’s blockchain-security modules to keep bad actors out of your account and away from your points.
Speaking of customers, let’s address yet another of the industry’s pain points.
Bettering the Customer Experience
We have a people-first culture here at RedFOX Labs. And that belief system extends beyond the core team. Every blockchain venture we build takes a consumer-centric approach. After all, people are at the heart of any transaction, whether business or pleasure. It’s best practice to keep them in mind while designing products and services.
From confusing or inadequate rewards structures to slow payouts, the customer loyalty industry leans towards lackluster. However, by applying a fresh coat of blockchain tech, we can upgrade the customer experience in a few different ways:
1) Chaining Your Points
As touched upon above, your points are much more secure on a blockchain network than they are on a corporate server. Less fraud means fewer complaints, which naturally leads to happier customers.
They say time is money — and the last thing you want is for a crook to steal your time spent watching videos, playing games, and completing surveys. Your points are for purchasing goods and services within our marketplace, and we want you to be the one doing the spending!
2) Faster Points Redemption
Redeeming points is even more fun than accumulating. Because Komodo runs our portal’s codebase, every merchant will be part of a blockchain network. Now, there’s a significant benefit here because of what happens in the background.
Rather than submit a redemption request and wait two weeks for external funds to hit your account, points flow throughout a blockchain network. And, all participating merchants connect straight to your account. Simply put, redemption is quick, easy, and internal. When customers get their goods without delay, we incentivize them to return to the portal and earn even more points.
Building a Bridge to Mainstream Finance
Now, we know what you may be thinking. Does this new partnership involve yet another tradeable crypto-asset entering the market? The simple answer: yes, and no. Yes, there’s a coin at play. But no, it won’t earn a trade ticker.
Instead, our points system is fiat-facing. We’ll create an underlying cryptocurrency to handle financial transactions, but its operation runs quietly in the background.
Portal members have no need to use crypto or learn about blockchain. The entire points system anchors itself in fiat, aka government-printed money.
To drive blockchain adoption, we tuck the tech away into familiar products and services. Customers won’t know they’re interacting with a crypto network, and that’s how we prefer the system to run. We’re out to prove that you can run a successful blockchain network without the hype surrounding tradeable cryptocurrencies.
After all, the separation of blockchain and crypto is long overdue.
Although we’re splitting tech from assets, driving value for our native crypto, $RFOX, is nonetheless critical. One current undertaking is our coin-burning, crypto-trading competition — hosted by Liquid exchange and running until September 18, 2019. But that’s only half the fun.
Courtesy of — again! — Komodo’s Antara Framework, we can easily convert any number of $RFOX coins into an all-new crypto asset. Not every blockchain venture requires its own currency, but it’s nice to have the option.
Every new venture presents an opportunity to further diminish our coin’s circulating supply. And if you’re at all familiar with the law of supply and demand, you already know how this scenario plays out.
Unfortunately, fraudsters are everywhere, on and off the blockchain. And in the multibillion-dollar rewards industry, there’s bait at every turn. Hackers gaining access to your account have a pre-loaded balance awaiting a complete draining. But we intend to thwart each and every attempted breach.
Creating a simple, fiat-facing rewards program requires significant infrastructure, but our friends over at Komodo are helping jumpstart our progress.
Per our business model, we’re identifying what works in other markets and creating our own version here in Southeast Asia. The customer rewards industry is a giant, no doubt. Yet we know how blockchain improves the experience across the board.
From here, the next steps are to build the portal and its associated marketplace. No definitive dates just yet, but, as you’ve come to expect from RedFOX Labs, we’re happy to share further details as they develop.
Until then, it’s time for us to get back to building our new blockchain venture. See you again next week!