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What It Is and How It Works

  • LoyaltyShares LLC  brings a totally new reward redemption option to market for sponsors of loyalty point programs. Your company stock!

    We’ve put together the necessary framework and infrastructure that enables your loyalty program participants to redeem their loyalty points for your publicly traded stock.  That’s right.  Instead of a TV or a vacation – your loyalty members can redeem their points for equity in your company!   Your program now creates “owners” instead of just “participants.”

    Your business will benefit by driving ACTIVE Loyalty behaviors and creating new target marketing opportunities and by improving your business financials through a reduction in the reserve your company is required to keep to cover outstanding points.

    Our LoyaltyShares redemption option has a US  patent pending, and is based on a precedent-setting successful loyalty program model that passed scrutiny by the US Securities and Exchange Commission (SEC).

    If you think reducing your point liability while increasing customer loyalty is a good idea, call or email – to schedule some time to talk about how to offer your stock as a redemption option for your participants.  We look forward to the conversation.

    Additional Information

    Most Loyalty Investment is Wasted
    New Marketing Opportunities
    Impact on Your Business Financials
    Case History


     

    How Do We Do It?

    Through our solution you now can give your customers a concrete stake in your company’s success.  It is simple in concept, but the implementation requires an understanding of the practices and technology within certain parts of the equities market.  At LoyaltyShares LLC we have the understanding and the experience to make this seamless and easy for you and your loyalty program members.

    To give you an idea of the process we’ve summarized it into the following three “mechanisms.”  Click each “+” to get further details on each one.

    The Three Mechanisms Required

    A Direct Stock Purchase Plan

    One of the principal components of the program is a mechanism most public companies are already familiar with – a Direct Stock Purchase Plan.  A key feature of such plans, which many companies already have in place, is the ability of enrolled participants to make systematic purchases of whole and fractional shares of the sponsoring company’s common stock.

    Adding LoyaltyShares to your program, which aims at creating and cultivating a new, clearly defined and cohesive shareholder group, we advocate the establishment of a Direct Stock Purchase Plan that would be used exclusively for loyalty purposes. The procedure for its establishment would not differ from the norm, and it would be administered by an appropriate party, on behalf of participants, in the usual way. We can help in this process.

    Existing Tracking System

    Another key mechanism is your existing loyalty system, which keeps track of sales and award points.  Through our systems and your existing program, you can offer  a new redemption option, one that creates active and engaged loyal customers.

    We do not provide the overall loyalty platform (although we have and can – let’s talk), we do provide the comprehensive award redemption system that connects to your existing loyalty platform and provides the interface and connections required for redemption within your existing infrastructure.  No need for your loyal members to visit two or three sites to complete a redemption event.

    LoyaltyShares (that’s us)

    We provide the mechanism that ties all elements of the program together in a manner that’s logical, operationally coherent and procedurally sound. It’s a mechanism that provides overall control of the entire process.  It’s a versatile, flexible system built by LoyaltyShares, based on practical, hands-on experience. We design it to look, feel and act like your existing platform allowing you to brand it as part of your ongoing connection to loyal customers.

    Our interface, with appropriate customization, “speaks” to your existing loyalty platform about share purchases and conveys data to the Plan Administrator, in a pre-specified format, controlling the data traffic between the Plan Administrator, the loyalty platform and plan participants.  Our interface also manages participant enrollment from participants and disseminates statements and other pertinent documents.

    Our interface, in short, bears the brunt of whatever customization might be necessary to put the program in place.

     

    Obviously, this is a simplified view of the interactions.  Contact us to have a much deeper conversation on how you can create active loyalty program participants.

Copyright 2011 All Rights Reserved. US Patent Pending.