Loops™ are “universal reward points that are fun to earn & easy to spend”, according to Jörg Malang (Co-Founder & CEO) and Greg Jarrett (Co-Founder & CTO)
Malang and Jarrett formed Loops to solve what they see as the main issues with points and miles based loyalty programs.
“We believe that loyalty belongs in the hands of customers. Today’s loyalty schemes aren’t always customer centric. Most points are difficult to earn and can only be spent with one partner. Also, to make matters worse loyalty points tend to expire” says Jörg Malang, Co-Founder & CEO of Loops.
They see blockchain as the way to solve these problems and make loyalty programs more customer centric. They have recently set-up an office in Malta to take advantage of the blockchain-friendly environment there.
The team are seeking seed funding, with a view to running an ICO in 2019. They plan to launch the program this year to enable potential investors to trial the customer experience prior to investing.
The challenge Loyalty & Reward Co see Loops facing is a lack of differentiation in their approach. There are a number of blockchain loyalty programs around the world who have successfully completed multi-million dollar ICO’s, but have failed to achieve scale with their programs. Solving the inherent issues of a loyalty program is great, but the real challenge is achieving merchant penetration and member acquisition.
It is quite telling that the video on the Loops website starring Malang and Jarrett makes no mention of merchant acquisition. This is a trap other companies have fallen into. Instead of focusing on building out the merchant network early, they’ve spent much (and often way too much) of the ICO proceeds on building the blockchain loyalty platform. This has led to a situation where insufficient funds remain for the extensive marketing campaigns required to build scale and drive ongoing member engagement.
For now, there’s little evidence that Loops will bring anything new to the table, and could simply end up repeating the mistakes of other companies who have little to show for their ICO raise other than a cryptotoken that is 98% down from its peak and effectively dead.
For Loops to succeed, they need to bring innovative thinking and an entirely new approach to market. With the project still in it’s early stages, it’s not too late.
Philip Shelper is a loyalty management 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. Buy the book.
www.blockchainloyalty.io is a global resource centre for everything blockchain loyalty.