JIM TIERNEY, LOYALTY360, DECEMBER 21, 2017
This week Snipp announced a new partnership with Appsolutely Inc. to explore ways to incorporate its LoyalCoin loyalty solution into Snipp’s suite of products. LoyalCoin is the digital currency in a next generation Blockchain-based platform that allows consumers to use a single currency to redeem and exchange rewards from any participating brand.Snipp Interactive, a global provider of digital marketing promotions, rebates, and loyalty solutions, prides itself on living on the edge of innovation.
By using a virtual currency, LoyalCoin is attempting to transform the current loyalty landscape into a cryptocurrency-based rewards system, thereby creating an open loyalty ecosystem that gives consumers unprecedented freedom in where they can redeem the rewards they have earned.
LoyalCoin is the token that serves as the official virtual currency of the new system.
Loyalty360 talked to Snipp CEO Atul Sabharwal to find out more about this evolutionary change in loyalty program administration.
Can you talk about how Snipp’s partnership with LoyalCoin can enhance a loyalty program and overall customer experience?
Sabharwal: Incorporating the blockchain into our rewards platform will allow us to create a layer of interoperability between our clients’ products/services and their respective programs. For example, recently we received a request from one of our clients, the largest multi-national consumer goods company in the world, to enable its users to redeem their points at one of the largest American coffee company and coffee house chains, whose loyalty program we also run.
Allowing for this interoperability today requires a lot of custom development work that takes time and is expensive. Also, the work is not replicable across other client programs/partnerships and, as such, the interoperability of programs today is expensive, time consuming, susceptible to fraud, and a very cumbersome experience for users (who also implicitly face high transaction costs for this benefit).
Alternatively, a gift card solution is based on fixed denominations and not conducive to smaller dollar amounts. But, incorporating LoyalCoin into our programs will allow for the removal of all of these inefficiencies and, for the first time in the history of the loyalty industry, create a transparent exchange mechanism across different incentive programs. This will unleash a new layer of creative product/ service partnerships for customers running incentive programs, more flexibility in the earning and burning of points by consumers, and higher consumer satisfaction and participation that will, ultimately, drive further loyalty!
What makes the LoyalCoin loyalty solution unique?
Sabharwal: Firstly, they have a first mover advantage in this nascent space. Secondly, they have an experienced team that came from the digital promotions industry, so unlike other burgeoning solutions in this space, they actually have a very deep understanding of the industry. Thirdly, they are taking the time and energy to build out their infrastructure based on the requirements of the market and soliciting feedback from companies like ours that are operating large scale programs globally for leading multi-national companies today! We hope to incorporate a few marquee pilots in 2018 with them that will allow for further validation of the technology.
What factors prompted Snipp to execute this partnership?
Sabharwal: At Snipp, we are constantly on the lookout for new ways to bring innovative solutions to the industry. We were the first company to bring 99 percent+ accurate receipt processing with our leading SnippCheck + SnippLoyalty solution to the industry and are proud to be the engine that runs the three largest consumer product loyalty programs today based on receipt processing. So, when we first met the great folk at LoyalCoin, and further explored their vision and solution, it was a natural meeting of the minds. Personally, I was very impressed with the LoyalCoin team, their history in the app development and digital reward space, as well as their vision.
Can you talk about virtual currency, how this will work, and any trends you see attached to it?
Sabharwal: Right now, there are a lot of unknowns around virtual currency. At last count, there were over 1,100 cryptocurrencies, ranging from the first and most globally accepted currency Bitcoin, to lesser known currencies such as Bankcoin that is 500 on the list of Top Virtual Currencies by market capitalization on www.coinmarketcap.com! The next few years will determine the winners and losers of which there will be many and, as with all things new, adoption will be driven by acceptance and usage based on the specific problems each of these currencies is attempting to solve. At Snipp, we keep abreast of all of these developments and look forward to educating and implementing appropriate solutions in this space as part of our commitment to bringing innovation to the loyalty and promotions industry.
What is the power of Blockchain?
Sabharwal: In one word, the power of Blockchain comes from transparency. The ability to not have an intermediary control access (and validation) of information has far-reaching impacts on every industry. It enables the tracking of all kinds of transactions and interactions. In essence, it creates what some commentators have called a “platform or trust and truth”. Anyone interested in understanding the power of Blockchain should read this article. It provides a great introduction to the power of Blockchain.