This interview is part of our new Blockchain In Marketing series, where we interview the world's leading thought leaders on the front lines of the intersections between blockchain and marketing.
In this interview we speak with Jörg Malang, Co-founder of Loops, to understand how his company is using blockchain to transform the marketing business, and what the future of the industry holds.
1. What's the story behind Loops? Why and how did you begin?
JM: Loops Rewards was set up legally in 2018. The two co-founders discussed the concept in early summer 2018 and we both started to regularly work on Loops Rewards in Sep 2018. We felt and feel that the current way how loyalty is being done is broken. It is about time to change the world in a way the customers can profit from loyalty programs. “It is time to put loyalty back into the hands of the customers.” We started to build customer apps and a merchant self-service portal and validated our products on the market.
2. Please describe your use case and how Loops uses blockchain:
JM: Loops are “universal reward points that are fun to earn and easy to spend’. We also like to describe ourselves as “Pokemon Go for loyalty”. A gamified approach to collecting Loops. Merchants would grant Loops for customer interactions that are commercially relevant for them (e.g. rewarding footfall into their stores or buying one coffee and getting Loops as a discount). Blockchain enables transaction between parties who don’t know each other and don’t necessarily trust each other. Loops are issued tokens and the transactions between customers & merchants as recorded in smart contracts. In the first phase, Loops Rewards is using a traditional database. Next phase will be a private hyperledger and eventually Loops will be exchanged on a public blockchain.
3. Could you share a specific customer/user that benefits from what you offer? What has your service done for them?
JM: We have a two-sided platform model. Customers profit from our offering by having more fun while collecting Loops and earning rewards for their behaviour. Merchants drive footfall into their stores, increase revenue and offer new ways of interacting with their brands. Our service is to manage the Loops issued by ensuring security, liquidity & value of the reward points. Merchants get support if they need help with setting up their merchant portal and how to optimize their campaigns. Merchants will also get access to anonymized customer data to understand the interactions of their customers better.
4. What other blockchain marketing use cases are you excited about?
JM: Well every use case that gives power back into the hands of customers is exciting. E.g. if you get a reward in tokens for watching an ad, for signing up for a service, etc. etc. In addition to that, blockchain gives the unique opportunity to follow transactions and to understand how and where value is being generated for customers and businesses.
5. Where will Loops be in five years?
JM: We believe that loyalty is ripe for a change. Blockchain fuels the change. Loops Rewards aims at being the market leader in the loyalty points on blockchain space. By 2023, we expect this to be a 500 million USD market for us.