menu
Partner

Innoprax AG

Technologies used

Python, Docker, Angular 5, Ethereum Blockchain, AWS

Industry
IT industry
Deliverables

Strategy & Concept, Product Ownership, Mobile-first Web application, Dashboard, RESTful API

Crypto Macchiato

Lattesso and mindnow partnered up to launch the first-ever crypto-based loyalty program. Consumers became cryptocurrency holders simply by drinking cold coffee. This disruptive innovation was decisive to increase Lattesso’s competitiveness.

Background

Lattesso and mindnow are long-standing partners who each year try to expand the boundaries of innovative loyalty campaigns and push them to their limits. The most recent success has been “Lattessoboost” with amazing results in terms of customer retention and satisfaction. In 2018, the two partners continued to accept the challenge.

However, it was clear that 2018 was the year to make disruptive changes. Based on the new partnership with qiibee, we proposed a blockchain-based loyalty campaign to Lattesso. We needed an innovative solution connecting blockchain and retail.

 

Challenge

Every year Lattesso looks for new ways to increase customer loyalty, generate brand awareness and retain loyal customers. In this highly competitive market, where customers have a choice between 20 different brands of cold coffee, it is important to stand out and offer added value to the customer.

Blockchain technology is still out of reach for the average consumer, so how can we convert the average consumer of Lattesso coffee into a cryptocurrency holder? How can we make cold coffee attractive for young and technology-conscious people?

Solution

We started with a virtual coin prototype design to make it clear to the end user that they are dealing with cryptocurrency. The coin was designed using a 3D rendering software to materialize the token.

The coin was then printed with a unique code under each coffee lid. Each code stood for a fixed value in Fiat currency that corresponded to the fluctuating qiibee price, which is in itself an Ethereum-based cryptocoin. This means that the user received a different number of tokens per code, depending on the price of the token.

For Lattesso we have developed a tailor-made software solution to track the code entries and to protect the system from misuse, as the entire blockchain environment is often attacked by hackers. The transactions took place on the blockchain in real time, with each transaction requiring confirmations from at least 2 nodes. There were security precautions in case someone decided to guess the codes or try to brute force our system with invalid requests. The entire infrastructure runs on Amazon Web Services with load balancers and auto-scaling functionality. We used docker containers to facilitate the deployment of new versions and isolate the environment.

"The minds are simply fantastic."

Erich Kienle

Conclusion

A first pilot project using blockchain to implement a fully-working loyalty program. Every user transaction was performed on the real blockchain which resulted in slow transaction times at first – avg. about 30 seconds. This was later optimized using more nodes to improve the transactions throughput.

 

1.53 TX

per User

26.6 K

Blockchain Wallets created

61 %

Sales uplift during Happyhour

Project members

Jakob Kaya
Vadim Kravcenko
Dalibor Kratky
Jean-Paul Saija