At Cypher 2024, Amit Koshal, Co-Founder and CEO of Twid, provided a compelling look into how data and AI are revolutionizing the engagement ecosystem among banks, merchants, and consumers. By addressing long-standing inefficiencies in loyalty rewards systems, Twid is creating a seamless network where rewards are no longer just a perk but a driving force behind consumer spending and engagement.
Transforming Loyalty Programs
Amit began by highlighting a key challenge in the loyalty rewards landscape: the lack of usability for accumulated reward points. Consumers often forget about or underutilize their points, leaving value untapped. Twid addresses this by making reward points fungible and accessible at checkout points across a wide merchant network. This allows consumers to use their rewards effortlessly for everyday purchases, driving engagement and satisfaction.
Twid’s impact is evident in its growth. With over $2.2 billion in reward points processed, 18 million transactions facilitated, and partnerships with 100,000+ merchants, Twid has successfully established itself as a robust rewards network. This transformation has been enabled by integrating AI and data analytics into the system, ensuring consumers, merchants, and banks benefit equally.
Rethinking Loyalty: It’s About Retention, Not Acquisition
Amit challenged a common misconception: loyalty programs are not primarily about acquiring new customers. Instead, they focus on engaging existing customers, encouraging repeat business, and fostering brand advocacy. By personalizing rewards and making them more relevant to individual consumers, Twid helps brands build stronger connections with their customer base.
This personalization is powered by data. By analyzing consumer behavior, Twid ensures that rewards are meaningful and contextually relevant, whether it’s a discount at checkout or a recommendation for the best payment method to maximize savings.
A Seamless Consumer Experience
One of Twid’s key innovations is its integration with existing payment and e-commerce systems. Unlike standalone apps, Twid operates directly at merchant checkout points, providing a frictionless experience for consumers. Using their mobile number as a unique identifier, consumers can instantly access all available reward points, apply them to their purchase, and pay any remaining balance.
This approach benefits consumers in two major ways:
- Visibility of Rewards: Consumers are often unaware of the reward points they have. Twid aggregates this data and makes it accessible in real time.
- Ease of Use: By integrating with popular platforms like Myntra, MakeMyTrip, and Zomato, Twid eliminates the need for additional apps or steps, enhancing convenience.
Driving Value for Merchants and Banks
The benefits of Twid’s network extend to merchants and banks:
- For Merchants: Twid increases conversion rates, average order values, and overall sales. For example, when consumers see rewards applied at checkout, they’re more likely to add additional items to their cart, increasing transaction sizes. Twid also helps merchants identify high-value customer segments and tailor their offers accordingly.
- For Banks: Twid helps banks reduce the cost of managing loyalty programs by increasing the usability of reward points. This drives customer retention and encourages more spending on bank-issued cards, boosting revenue streams through transaction fees and interest income.
Amit explained that banks often view rewards as a cost, leading to limited redemption opportunities. Twid flips this narrative by demonstrating how rewards can drive incremental spending and foster loyalty, turning a perceived cost into an investment.
AI and Data: The Backbone of Twid
The seamless functionality of Twid’s network is powered by advanced AI and machine learning models. These technologies enable real-time personalization and optimization, ensuring every stakeholder benefits.
Key AI-driven features include:
- Dynamic Offers: Consumers receive tailored offers based on their spending habits and preferences, increasing the likelihood of redemption.
- Payment Mode Recommendations: Twid suggests the best payment method for a given transaction, helping consumers maximize their rewards.
- Loyalty Milestones: By analyzing transaction patterns, Twid provides personalized recommendations for achieving loyalty milestones, enhancing engagement.
Expanding the Ecosystem
Twid’s vision extends beyond traditional rewards systems. Amit outlined several forward-looking initiatives that will further enhance the engagement ecosystem:
- Cross-Brand Rewards: Leveraging technologies like blockchain, Twid aims to create a network where rewards can be shared or transferred across brands, offering greater flexibility and value to consumers.
- Omnichannel Experiences: As consumer behavior spans both online and offline channels, Twid is working on creating a unified rewards experience that bridges these touchpoints.
- Social Sharing: Future plans include enabling peer-to-peer exchange of reward points, allowing consumers to lend or share points with friends and family.
- Predictive Purchases: Using AI, Twid plans to predict consumer purchase patterns and offer proactive recommendations, helping consumers optimize their spending.
Security and Trust
With such extensive data flowing through its network, Twid prioritizes consumer trust and data security. The platform is ISO-certified, PCI DSS-compliant, and employs fraud detection mechanisms to ensure data integrity. While these certifications provide assurance, Twid’s focus remains on delivering a seamless and transparent experience for consumers.
The Road Ahead
Amit closed his talk by emphasizing Twid’s broader mission: to make rewards a central part of the consumer experience. By positioning rewards as a driver of spending rather than a byproduct, Twid is reshaping how loyalty programs function.
As Twid continues to grow, it aims to deepen its partnerships with merchants and banks, expand its network, and explore new use cases powered by AI and data. The ultimate goal is to create a hyper-personalized, omnichannel rewards ecosystem that benefits all stakeholders.
Conclusion
Amit Koshal’s insights at Cypher 2024 highlight the transformative potential of data and AI in building a connected ecosystem for banks, merchants, and consumers. By addressing long-standing challenges in loyalty programs and enabling seamless integration, Twid is setting a new standard for engagement and value creation. As businesses increasingly adopt AI-driven solutions, Twid’s approach serves as a blueprint for leveraging technology to enhance customer experiences and drive growth.
In Amit’s words, “Spends do not drive rewards; rewards drive spends.” This shift in perspective is at the heart of Twid’s success and its vision for the future.
