The strategy behind platform based currencies
‘Refer and earn 100 coins.’, ‘You have earned 250 coins for shopping here’, ‘order now and win 50 coins’. If you are a frequent user of online platforms, you are well aware of these notifications. What are these? These are platform based currencies which encompass a broad spectrum of digital assets, extending beyond mere monetary exchange. This diverse landscape includes points, reward tokens, social network credits, and even virtual gold, each serving distinct purposes within their respective ecosystems.
These platforms create their own matrix and form a closed loop. This is a marketing strategy of the platforms to bring in more sales. They lure you by rewarding you with these currencies which can only be redeemed on the platforms owned or associated with them. You get rewarded for logging in, ordering food, playing games, shopping and what not.
These become your earnings but with a catch- they can only be redeemed on the platforms they are earned from. These currencies often play a crucial role in fostering engagement, incentivizing participation, and promoting loyalty within online platforms which serves as a mechanism to reward customers for their continued patronage, encouraging repeat purchases and fostering brand loyalty. Social Network Credits have become a ubiquitous feature within online communities, serving as a means to reward participation, encourage interactions, and enhance user engagement. These credits can be earned by creating content, sharing posts, or interacting with other users.
Platform based currencies are equivalent to gift cards, credit notes and coupons for physical stores. They use the same old concept but instead of a large amount at one time, they give it in bits and pieces. Gamers become the highest consumer as they can enhance the cosmic features of the characters with the virtual gold earned or purchased.
These are not only limited to gaming or shopping platforms but on social media too where one can earn real world money after gaining interaction on the posts. If not, the amount of likes or shares can also help you land a job or an assignment. PR packages, sponsored products, trips are all a result of social media popularity and clout which more or less are currencies.
But like any powerful tool, there are challenges to consider such as misinformation and manipulation. Platforms must ensure genuine engagement and combat bots or deceptive practices that inflate currency value. Further users might prioritize earning over creating valuable content, potentially compromising originality and authenticity or established creators may have an advantage, making it harder for newcomers to gain traction and earn rewards. Limited usability, potential for over spending or transparency and fairness.
Promotion platforms have harnessed the power of platform-based currencies to incentivize users to promote products, services, or content. These currencies can be earned by sharing promotional material, engaging with target audiences, or achieving specific goals. Users can then redeem these currencies for rewards, such as virtual goods, discounts, or even real-world prizes.
