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Cut the Coupons: Mondelēz and SKUx See Blockchain Transforming Retail Promotions
- Technology can revolutionize industries when applied thoughtfully.
- Mondelēz International and SKUx co-founder and CEO Bobby Tinsley, believe distributed ledger technology (DLT) and blockchain advances are providing groundbreaking steps forward for the retail and payment-based offer ecosystems, particularly across the traditional couponing and promotional landscape.
- Mondelēz, relying on traditional couponing methods involving paper checks and mailed promotions, partnered with SKUx to innovate beyond the conventional couponing process by transitioning their promotions into a digital format.
- The proof of concept reduced redemption times from several days to seconds and achieved a 90% conversion rate - an improvement over the paper-based system.
- Blockchain technology underpins this new digital promotional system, offering transparency and efficiency. By using DLT, companies can save on costs associated with printing and distributing physical coupons, reduce processing times and improve consumer experience.
- A strong desire for digital transformation is driving businesses to adopt new technology like blockchain. Incremental improvements to traditional systems are insufficient for achieving notable growth goals.
- A key aspect of the approach being taken by Mondelēz and SKUx is the development of a new promotional rail - one that is agnostic to payment providers and networks. By offering digital promotions compatible with various payment methods and integrating them into existing loyalty programs, SKUx aims to create a seamless experience for both merchants and consumers.
- Mondelēz and SKUx are exploring ways to expand this ecosystem further. They see potential in integrating retail loyalty programs and developing new types of wallets that tie brand and retail loyalty together.
- As companies move beyond the proof of concept and into full production, scalability and interoperability are challenges that need to be addressed.
- Mondelēz and SKUx aim to redefine how brands engage with consumers, moving beyond the limitations of traditional promotional models.
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