Introducing a new approach for turning reward points
into a highly liquid, fungible and valuable currency
REWARD
POINTS
by Malini Raman, Product Head, Quartz,
and Ganesh Jayapalan, Head of Quartz Enablement Center
Airlines cultivate loyalty with frequent-flier miles. Hotels attract business
travelers with free nights. Large online merchants and retail chains offer
reward points. Even small businesses such as cafés, restaurants and other
service businesses offer digital punch-cards that can reward frequent visitors
with customizable offers.
Bank issuers bring all these together with credit and debit card offerings
that allow customers to earn reward points that can be exchanged for airline
miles, hotel nights, gift cards, or cash back.
Reward points are everywhere. Yet despite their ubiquity, reward programs
have yet to reach their full potential.
Why are reward points issued monthly in a real-time economy?
Even within a real-time digital economy, most consumers still earn reward
points only once per month at statement closing, and then may have to wait
weeks for delivery of the underlying product or service.
The unwieldy and cumbersome process of reward redemption requires