BMW, the car manufacturer, is trialing the new blockchain system that offers customers tokenized loyalty points, before its potential rollout worldwide. It claims blockchain tokens as rewards as part of a new membership scheme, called BMW Vantage.
On October 7, it has been reported by The Korea Time that BMW Korea is the first branch in BMW Group to run a trial of the new scheme and aims to fully launch it in the country by the end of 2020. If successful, the company is planning a global rollout.
However, the points-based rewards program uses blockchain technology to securely allocate and track tokens for participating customers. First-time buyers of new BMW models could be eligible for 300,000–500,000 points. Buyers of existing vehicles, like the X1, X2, BMW 1 and 2 series cars, could receive up to 600,000, and those who purchase new BMW 5 or BMW 6 series cars up to 900,000.
BMW Korea's customers can use their blockchain-based rewards to get discounts on car maintenance and other BMW services https://t.co/4IwyGQAirV — Cointelegraph (@Cointelegraph) October 7, 2020
For BMW repurchases, customers will receive extra points based on the vehicles’ prices.
According to the report, buying BMW cars is not the only way to earn points. BMW Korea has rolled out an app with gaming and social features, through which users can also earn their dues.
Broadly, the purpose of the points-based scheme will be to provide loyal users with discounts on car maintenance and other BMW services. For those with higher-tier membership in the program, the company is promising them invites to cultural events organized by BMW.
Likewise, in recent years, BMW has been using blockchain solutions for both customer-facing and business-to-business operations. As a co-founder of the Mobility Open Blockchain Initiative, the manufacturer has collaborated with high-profile blockchain developers and tech firms such as Hyperledger, IBM, and IOTA.
Thus, the carmaker was experimenting with a tokenized rewards system to encourage drivers to track mileage on their leased vehicles.
Source: Cointelegraph