IOU Ltd is looking to disrupt the world of e-commerce with the launch of its IOU Platform, the first true P2P e-commerce loyalty platform on the blockchain.
The continuing growth of global e-commerce, predicted to rise from $2.3 trillion in 2017 to $4.5 trillion by 2020, is one of the most competitive environments to enter. Finding and retaining new customers can be a huge challenge for merchants, especially when over 50% of customers are willing to switch brands for the sake of using a discount coupon. Therefore, to succeed in this market, customer loyalty is key to the sustained growth of profits.
IOU, by empowering both merchants and consumers with a decentralised and ultra-secure peer-to-peer blockchain-based platform, will drive customer satisfaction and loyalty, through its tradeable deals, known as “IOUs”. The company is also launching the IOUX utility token and an Initial Coin Offering (ICO) campaign, to create a ready-to-go marketplace.
By using blockchain technology, IOU can address common issues such as security, the speed of processing and transparency for the buyer, whilst providing a level of cost-effectiveness to the merchant, due to higher levels of loyalty, customer retention, global reach of consumers and return on advertising spend. Community members are able to generate new sustainable revenue with tradeable IOUs, helping to reinvigorate existing and create new innovative loyalty programs.
IOU’s “loyalty system” will allow business owners to create a new level of interaction with customers, which will lead to new selling opportunities and ultimately, revenue growth.
A “rating mechanism” is planned as a next stage which should lead to an even deeper level of trust between merchant and consumer.
The IOUX tokens can be utilised in a number of ways to enhance their customer offering, for example:
– Merchant can offer tokens as part of the deal (IOU) discount, should they believe the product on offer is already at its lowest price.
– Customers who buy multiple IOUs (if they believe the offer is exceptional) can then trade those they don’t use to other consumers, or sell on the exchange, thereby becoming the merchant for this particular deal.
– Merchants must use crypto to offer the deal, but by using IOUX tokens, they will receive a 50% discount on the deal listing.
Finally, the company will initiate a quarterly “buy-back” programme, in effect a reverse mining operation, to “burn” tokens up to 30% of that period’s revenue, thereby increasing the value of the remaining IOUX tokens in circulation. The more successful IOU’s business becomes, the faster the IOUX tokens will be removed from the market.
Vitaly Garshtya, Chief Visionary Officer of IOU, commented: “IOU’s loyalty platform has been 18 months in development based on the knowledge that both merchants and consumers need something more to satisfy their online shopping demands. We are confident that its purpose and disruptive services will revolutionize the traditional world of e-commerce, creating an environment of security and loyalty which will benefit all parties. We have taken the traditional coupon-based e-commerce model, made so popular by the likes of Groupon, and moved it into the 21st century.”