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 Patrick Paul Palacios, CEO of LoyalCoin, 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 LoyalCoin? Why and how did you begin?
PP: We started of as a white label loyalty program provider in 2013. We did private programs for TGI Fridays, Denny’s, Family Mart Convenience Store and a bunch of other programs for retailers in the Philippines. We noticed that not all programs are successful. The problem is that there are too many loyalty cards in the market that can only be used in a few establishments plus points expire.
2. Please describe your use case and how LoyalCoin uses blockchain:
PP: Then in 2017, I decided to solve that problem by using the blockchain as a platform. We created Loyalcoin and the LoyalWallet. Points that can be earned and redeemed anytime, anywhere and everywhere in the World. We target the small and medium businesses and we convert the points into miles and gift cards. A Filipino consumer earns Loyalcoin from Gongcha, converts LoyalCoin to Philippine Airmiles or McDonalds burger or converts it to Amazon or Walmart gift Cards in the US!
3. Could you share a specific customer/user that benefits from what you offer? What has your service done for them?
PP: Our first partner merchant in the Philippines, Gong Cha Milk Team, experienced a 30% increase in sales when they started to implement and join the LoyalCoalition. A buy 1 take 1 deal was implemented if the consumer had the LoyalWallet app. This created a huge Buzz that resulted to higher sales.
4. What other blockchain marketing use cases are you excited about?
PP: IOT, AI that includes contextualize offers stored on the blockchain would be really exciting for me. Imagine shopping that will recommend stuff that not only suits your requirement and will advise if it is within your budget.
5. Where will LoyalCoin be in five years?
PP: LoyalCoin through the LoyalWallet will have more than 100 million users in 5 years. The LoyalWallet is both a cryptocurrency exchange and a wallet that serves the unbanked, used by Filipinos worldwide.