Tokens For The Unbanked: Sponsored By The Brands.
“Why a token is needed?” for coupons and rebates? The answer starts and end with the unbanked shopper.
But first, you need to understand that the grocery business is a dinosaur when it comes to technology. Typically, the CEOs of billion dollar chains sell “beans and chicken” to make money and are incredibly tepid about tech expansion. Recently, one of the biggest tech companies (Amazon) has just purchased a serious player in the space (Whole Foods) and the game has changed. Brands and chains that were “dipping” their toes into mobile and digital are now chasing digital unicorns to save them from peril.
It’s like a bad movie — some of the CEO’s literally just got smartphones over the past 24 months because they were forced by their leadership
“we have to get into mobile and digital or we’re going to die”.
But they have a limited strategy and budget.
Some are too late. Some are getting it.
We’ve been pitching the token and blockchain model to some big names in the brand and chain side of the business and a few have jumped. But the VC world and outsiders still don’t understand…
Recently, a VC asked me “why tokens?” and this was my answer, right or wrong.
“The grocery chain is like the mob, they control the brands that go in and out of their stores and either charge them to “pay and play” (get an endcap or placement in their circulars) or look to them to create something SO compelling that shoppers will focus on shopping at their stores.
Since the dawn of the grocery store, promotions have been executed by the brands and have utilized multiple tactics with different sign ups, downloads, information aggregation, etc.
For example, if you want to enter a Nestle sweepstakes or rebate at Kroger you have to fill out a shelf talker, enter a Nestle short code or download a Nestle app. Then, in the same store, if Unilever wants to launch a promotional program the same steps need to be taken by the consumer, all over again.
The Brands keep the data and the Chain loses its marketing position and data insights. Third parties like iBotta, Catalina Marketing, Facebook and many others have capitalized on this for decades. (We call these companies “Remoras”)”
THE TOKEN
In a tokenized model, the grocery chains will use the Tokens to control the customer experience, data, and, more importantly, will FORCE the brands to participate this way.
The tokens also allow the unbanked to participate in rebates — for the first time! They can earn cash back without having a bank account and can transfer value across local (friends/family) and international (family abroad) boundaries (2 billion unbanked worldwide, 35MM in the US)
The brands covet these customers and will spend whatever it takes to market and earn their trust.
Putting rebates and coupons on the Blockchain is the only solution that can manage a globalized and scaled model for the unbanked customer. The Token will change everything when it comes to three key KPIs:
- Stop rebate and coupon fraud
- Control shopper marketing budgets
and….
- Allow the unbanked to engage, earn and spend
Tokens on the Ethereum blockchain are loyalty platforms on steroids with global reach for brands and chains.
The Unbanked, the chains and the brands all participate:
- The brands want the unbanked shopper’s loyalty
- The chains want the unbanked shopper’s business
- The unbanked shoppers engage in safe and inexpensive way to save, use and exchange value in the token form.
