BMW Korea will be the first company in the group to trial out a new rewards program for customers that is powered by blockchain technology.
According to a report from the Korean Herald, the new program would be launched in South Korea. The blockchain-powered program is called BMW Vantage and is set to be rolled out across the world following its initial launch.
The upcoming launch of the program is BMW’s new membership scheme that will enable its customers to obtain rewards points which can then be used to pay for discounts on various goods and services that the membership offers.
The blockchain-based program will be trialed in South Korea with the aim of launching the new platform by the end of 2020.
The points based program will allow users to get discounts on vehicle maintenance and various other services from partner companies of BMW. BMW users that have high-tier membership are also set to be invited to cultural events organized by BMW Korea as well.
The BMW Vantage membership tiers are separated between Blue, Silver, Gold and Black and are calculated on the amount of BMW vehicles that a customer has bought over the past ten years.
The rewards program will see users awarded the platform’s native token, the BMW Coin. These can be earned by purchasing a new BMW vehicle or participating in various activities on the BMW Vantage mobile application as well as participating in events and purchasing various products.
The BMW Coin will be have a 1:1 ratio with the South Korea Won and will be valid for use for 5 years. One US dollar is equal to 1156,80 Won at the current exchange rate. According to Korean Herald, customers that purchase their first BMW models could receive between 300,000 and 500,000 BMW Coins, which is roughly $430 at the time of publication.
The report also indicated that customers that purchase the new BMW 5 or BMW 6 Series vehicles can earn up to 900,000 points.
Blockchain powering parts tracking
While the use of a blockchain platform to power a rewards program is a novel way of giving users added value, it’s not the only way BMW is using the burgeoning technology.
In April 2020 BMW announced that it would be launching a blockchain-powered supply management tool for approved vehicle parts called ‘PartChain’.
The technology will purportedly give the company better traceability of various components and raw materials across a massive, international supply chain network
technology in purchasing to ensure the traceability of components and raw materials in multi-stage international supply chains.