TALLINN, ESTONIA / ACCESSWIRE / July 13, 2021 / Subscription-based business models are nothing new in the eCommerce industry. Several big companies have been using it successfully, such as Amazon Prime and HelloFresh. Compared to traditional eCommerce platforms that are based on ad-hoc purchase and total revenues, subscription-based eCommerce platforms rely on preplanned purchasing and recurring revenue. When implemented right, eCommerce subscriptions have the potential to drive optimized growth for all sorts of online and offline businesses.
However, not all eCommerce businesses have the knowledge and means to implement well-designed subscription models. For businesses, customer retention is difficult to maintain as customers expect newer and better features. Stronger and cost-efficient incentive models need to be carefully designed and iterated to stay competitive. Easier said than done, these are critical challenges facing eCommerce platforms including food, retail, personal care, digital goods and more.
PARSIQ’s IQ Protocol is designed from the ground up to solve these fundamental challenges for eCommerce businesses. It is a subscription-based service model that lowers cost, increases incentives for customers and creates a strong circular business model for all eCommerce businesses. All using the latest smart contract technologies secured on blockchain technology.
Here’s how IQ Protocol can help eCommerce businesses succeed:
- Offer a Life-Time-Value token for subscriptions. Instead of asking customers to pay for a monthly subscription or annual subscription, eCommerce platforms can offer a Life-Time-Value token that will allow customers to use your services as long as they hold the token. Basically, the more tokens they have, the bigger volume of services they can consume. Offering Life-Time-value tokens can make eCommerce businesses stand out from the competition in terms of better value and flexibility for customers.
- Immutable transaction records. IQ Protocol enables businesses to reliably track subscription payments, payment profiles, and detailed transaction history through a trustless smart contract design, which is immutable and secured using blockchain technology. This means significantly reduced threats of data loss or hacks for the business, ultimately reducing expensive IT and security costs.
- Customizable business models. IQ Protocol offers program-specific business model logics that are highly customizable. All models in the protocol are optimized to efficiently process transactions, whether small or large in volume. Need to implement cancellation or product return logic? What about prorated payments? All of these can be baked straight into the protocol and executed via smart contracts.
For eCommerce customers, here are the benefits of IQ Protocol:
- Wide variety of payment methods. Customers who subscribe to eCommerce platforms using IQ Protocol can choose to pay in flexible methods accepted by the platform, including cash payments and cryptocurrencies. With digital payments on the rise, having this flexibility creates convenience whether customers pay with credit cards, Bitcoin or the eCommerce’s native crypto.
- Earn rewards. If a customer chooses to hold the eCommerce platform’s token, they can receive rewards sourced from platform fees paid by subscribers and other revenue sources shared back to the lenders, with no hidden fees. This works by customers “lending” their funds to IQ Protocol risk-free, which helps to create liquidity within the system. The capital liquidity is used to generate smart ROI, where rewards are paid back to the “stakers’. Customers can withdraw their initial earnings and investments at any time.
IQ Protocol offers many more benefits to eCommerce platforms, their customers, and even crypto holders. This protocol can benefit all parties involved in the business, so it will always be a win-win situation for everyone. As blockchain technology grows, more and more eCommerce businesses will understand its advantages, which means that they will need efficient and sustainable tokenomics. Thankfully, IQ Protocol is designed to answer these challenges.
SOURCE: PARSIQ LTD
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