Is this a case of desperation?
Long Blockchain Corp, the company famous for stimulating a 500% rise in its share price after rebranding from Long Island Iced Tea at the height of the blockchain bubble in Jan 2018, has announced it’s moving into the loyalty space. The company recently formed a new subsidiary, Stran Loyalty Group, focused on providing loyalty, incentive, reward and gift card programs to corporate and consumer brands.
“The U.S. loyalty industry has steadily grown over the past decade and is expected to continue its growth well into the future,” stated Andy Shape, new Chief Executive Officer of Long Blockchain. “Consumer brands and corporations realize that loyal customers not only purchase more goods but that they also purchase more often. Creating stronger loyalty with customers who are engaged in loyalty programs through advancements in technology is the key to future growth and massive scalability.”
Is this a case of desperation? A quote from the company’s press release gives some cause for concern. “The Company’s goal is to use the initial loyalty business as a catalyst to implement disruptive technology solutions, including distributed ledger technology, into the loyalty industry while realizing immediate revenue and credibility from traditional loyalty contracts. At this time, however, the Company has not taken any steps toward developing any such technology and does not employ personnel with the relevant technology expertise. There can be no assurance that the Company will be successful in developing such technology, or in profitably commercializing it, if developed.”
Or in other words, “We have no clue what we’re doing, nor do we have the right people in place to do anything about it, but dabbling in this loyalty stuff kind of sounds like a good idea. It’s really more about the vibe, to be honest.”
Loyalty & Reward Co rate this strategy 1 swizzle stick out of 5.
Philip Shelper is a specialist loyalty consultant based in Sydney, Australia who obsesses about everything to do with loyalty and rewards. His company Loyalty & Reward Co are a leading loyalty consulting firm.
Phil is the author of “Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies.”
www.blockchainloyalty.io is a global resource centre for everything blockchain loyalty.
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