Loomia, a New York-based IT company bonding trackers to textiles are utilising blockchain technology to allow customers to capture personal data, which can be later sold to companies.
There are a number of stages in the process:
Firstly, the Loomia Electronic Layer is woven into fabric to capture data including frequency of wear, location, level of activity and temperature.
This data is then stored on the Loomia Tile, which both powers the Electronic Layer and sends captured data into the cloud.
Finally, the data is transmitted to the Loomia Data Exchange, where it is stored in a secure and anonymous digital account, courtesy of blockchain tech. From there it can be sold by the consumer to interested companies for cash, points, cryptocurrency or free products.
To illustrate the potential, a footwear company who sells a pair of shoes to a customer is unlikely to see those shoes again, unless they’re faulty and returned. Using Loomia’s technology, the manufacturer can track every moment of the shoes’ life; how often they’re worn, how fast they travel, where they go, what time of day they’re used and how long they last in different climates.
Recent research on millennials indicated they are open and willing to providing data to companies, provided there’s a clear benefit in return. The question will be whether Loomia can achieve the scale required to make the business viable. To be successful they’ll need to work with their corporate clients to facilitate deep loyalty from their customers, who will be making an active choice to participate in the evolution of their product range. Certainly there are brands out there who will be able to pull this off.
Philip Shelper is Chief Design Officer & Co-Founder of LoyaltyX, an experimental loyalty agency and the program operator of Unify Rewards. He is also CEO & Founder of Loyalty & Reward Co, a leading loyalty management consulting agency.
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