From B2B to Token Economy: Cindicator Partners with SLP Network
Tokens are not a new thing. Most retailers and consumer businesses already have their own tokens — loyalty points and bonuses. The history of loyalty programmes could be traced back to 18th century when shop owners gave customers copper tokens that could be used to buy goods later. Today loyalty management is a huge business, but it’s inefficient since most loyalty points are never used, failing to bring customers back. SLP Network solves this by enabling a free exchange for bonus points and creating targeted, personalised loyalty programmes.
While rewards points might seem trivial for each individual consumer, it’s actually a big business. The value of the total global rewards market is more than $320 billion, projected to grow to $500 billion by 2019, according to City Retail Services. Startups and blue-chip companies alike use loyalty programmes to stimulate repeat purchases and generate recurring revenue. SLP Network solves real problems in the industry through tokenizing a strong product validated by real users — that’s why they are a great partner for Cindicator and the Symbiotic Network.
Most loyalty programmes don’t work. About 75% of all points remain unclaimed. Currently up to $100 billion worth of bonus points sit idle in customer accounts, according to Bond Brand Loyalty. Businesses can’t maintain loyalty by giving customers something that they don’t value.
The team behind SLP Network knows these problems well. SLP Network’s founder Leonid Shangin previously started SailPlay, a VC-backed B2B business that offers marketing automation for loyalty platform. Since 2012, SailPlay has attracted over 100 clients, including Papa Johns, VW, Sephora and other big brands in a range of industries.
The solution: personalise bonus points
SLP Network addresses these problems through a loyalty platform that features a blockchain-based bonus point exchange, dedicated loyalty token wallets and a targeted marketing engine.
By using smart contracts, the SLP Token Marketplace will allow users to securely trade SLP Tokens and business-issued loyalty tokens that represent bonus points. SLP Tokens will serve as a medium of exchange. So you could swap frequent flier miles for a retailer’s points, for example. The marketplace will be completely independent — partner bonus points exchange rates will be dependant purely on supply and demand and will be limited by a real-world bonus points value.
For businesses, SLP’s blockchain-based marketplace will provide a fully transparent and auditable record of all transactions. It’s important because from a corporate perspective, all loyalty points are financial instruments.
Additionally, the marketplace will enable business to create personalised loyalty offers.
Exchanging and spending bonus points creates valuable data. This data can be bundled and sold to merchants and brands, creating the opportunity to target specific groups of users, eliminating spam and offering better value to consumers.
All personal data will be stored in the blockchain, encrypted with a private key available only to the user. The user can issue and recall temporary keys for a particular set of data to a specific business. Temporary keys allow the off-chain decryption of the customer data until the key is recalled.
Tokenising B2B businesses
One of the aims of the Symbiotic Network is to help tech teams that develop new DLT protocol layers that strengthen the digital assets ecosystem. SLP Platform is creating its own decentralised infrastructure, designed to resolve major problems of business-related blockchain solutions and will create a UX-friendly, B2B-safe and transparent ecosystem.
There are a lot of parallels between SLP Network and Cindicator. We also started as a B2B startup, applying new technology in a mature industry. By tokenising our ecosystem we learnt how to build a community, how to create a successful token economy, how to launch positive feedback loops that fuel growth and product development. Now we want to share this expertise and that’s why Cindicator co-founder and CEO Mike Brusov joins SLP Network as an advisor.
It’s important for us to work with companies that already have a solid product with real users. As we wrote in our manifesto, a decentralised system can only evolve from a core such as a tight-knit team. We think tokenisation could be useful not only in fintech but also in a variety of different contexts. For the Cindicator team, partnering with SLP Network is an opportunity to share our expertise and expand the range of industries that we cooperate with.
We invite you to join the SLP community to stay updated on their progress and be the first to know when the marketplace launches.
Please be aware that none of the above constitutes financial advice. You should always do your own due diligence and act accordingly with the laws of your country.