Unshackling Loyalty: How SharingClub is Revolutionizing Rewards in the Web3 Era

In the realm of customer loyalty, a staggering $400 billion worth of rewards go unredeemed annually, representing a massive missed opportunity for both businesses and consumers. Enter SharingClub.io , a visionary startup that's leveraging the power of blockchain technology to revolutionize the loyalty landscape. By harnessing Concordium 's robust blockchain infrastructure, Sharing Club aims to create a global loyalty ecosystem where rewards are truly an asset of choice - democratized, flexible, and seamlessly transferable across merchants.

The Genesis of Sharing Club

Unlike many Web3 startups born from crypto-native founders, SharingClub's origins lie in addressing a tangible, real-world problem. Lars Rostock Jehl , the CEO of SharingClub, brings a wealth of experience from the financial sector and international companies like L'Oreal, where he specialized in customer behavior and loyalty. This background provided him with unique insights into the limitations of traditional loyalty programs.

"We are not born Web3 native," Jehl candidly admits. "The use case for SharingClub really derives from a real-life problem." This problem-first approach sets SharingClub apart in a space often criticized for creating solutions in search of problems.

The company's founding principle is simple yet revolutionary: loyalty rewards should be an asset of the customer's choice. This vision of fully democratized, flexible rewards that can be earned and redeemed with ease forms the cornerstone of SharingClub's mission.

The Loyalty Landscape: Challenges and Opportunities

Traditional loyalty programs face numerous challenges. Points expire, go unused due to high redemption thresholds, or fail to offer attractive redemption options. Moreover, the siloed nature of most programs means rewards earned with one merchant can't be used with another, limiting their utility and appeal to consumers.

Recent developments in the loyalty space, such as Starbucks' (now discontinued) NFT loyalty program and the rise of card-linked programs, hint at the industry's recognition of these issues and the need for innovation. SharingClub aims to address these challenges head-on by creating an interconnected loyalty ecosystem powered by blockchain technology.

Technological Backbone: Leveraging Concordium Blockchain

At the heart of SharingClub's innovation is its use of Concordium's blockchain technology. The platform's on-chain loyalty management system ensures that every transaction between customers, businesses, influencers, and brands triggers a FairShare smart contract, resulting in a blockchain transaction.

This approach offers several key benefits:

1. Transparency: All reward distributions are recorded on the blockchain, preventing tampering and ensuring fairness.

2. Security: Blockchain technology provides robust security for user data and transactions.

3. Efficiency: Smart contracts automate reward calculations and distributions, reducing administrative overhead.

4. Interoperability: Rewards can be easily transferred and used across different merchants within the ecosystem.

Jehl emphasizes, "By leveraging the blockchain from Concordium and NFT technology, we really aim to eliminate some of the inefficiencies and restrictions that we see in traditional loyalty programs".

The FairShare Token Economy

Central to SharingClub's ecosystem is the FairShare (FASH) token. This utility token serves as the backbone of the reward system, enabling seamless earning and redemption across multiple merchants.

The token distribution mechanism is designed to benefit all stakeholders:

- A minimum of 50% of merchant rewards are used to buy FairShare tokens, ensuring consistent demand.

- Tokens are distributed among merchants, buyers, ambassadors, and promoters, creating a balanced ecosystem.

- Users can spend their FASH tokens across different merchants or redeem them for various rewards, providing unprecedented flexibility.

This token economy not only incentivizes participation but also creates a self-sustaining ecosystem that grows stronger with increased adoption.

Innovative Features of SharingClub

SharingClub's platform boasts several innovative features that set it apart from traditional loyalty programs:

1. Merchant API: Launched in January 2024, the API has been tested across Nordic countries, providing valuable insights into customer behavior and integration challenges.

2. NFT Memberships: These offer users enhanced control over their rewards, including the ability to trade, sell, or transfer them. This feature opens up a secondary market for reward exchange, potentially increasing the perceived value of loyalty points.

3. Cross-Merchant Rewards: Users can earn rewards from one merchant and redeem them with another, breaking down the silos that typically constrain loyalty programs.

4. New Website and Affiliate Program: Scheduled for launch in August 2024, the new website will feature improved user experience, individual dashboards showing realt-ime reward values, and an affiliate program that allows users to earn additional rewards through social selling.

Market Traction and Early Results

Despite being in its early stages, SharingClub has already shown promising results. The platform has successfully onboarded 25 merchants with a combined database exceeding 600,000 customers. Initial data indicates a 13-18% increase in basket size for rewarded customers, demonstrating the potential impact on merchant revenues.

Looking ahead, SharingClub has set its sights on major financial institutions and telcos in Africa, leveraging the connections of their business partner and co-founder, CBS invest, which already operates in the region. This strategic move targets a potential user base exceeding 100 million, which could significantly accelerate the platform's growth and prove the scalability of its blockchain-based loyalty model.

The African expansion presents unique opportunities for SharingClub to tailor its offering to local needs. For instance, they're exploring partnerships that would allow users to earn rewards through everyday activities like grocery shopping and then redeem them against essential services such as mobile phone airtime or data packages. This approach could be particularly impactful in markets where mobile services are a crucial part of daily life and financial inclusion.

"We've seen very high interest in what SharingClub can bring," Jehl explains, referring to the potential of linking rewards earned from routine purchases to core services offered by telecom providers and financial institutions. This model not only provides value to consumers but also offers partner businesses a powerful tool for customer retention and engagement.

By tapping into these large, established user bases and adapting their model to meet specific regional needs, SharingClub is positioning itself for rapid growth in emerging markets. This expansion could serve as a proving ground for the flexibility and adaptability of their blockchain-based loyalty system, potentially paving the way for similar partnerships in other regions around the globe.

The Road Ahead: Future Plans and Milestones

SharingClub's journey is just beginning, with several exciting developments on the horizon:

1. On-Chain Migration: Scheduled for September 2024, this move will fully transition the platform to Concordium's blockchain, unlocking the full potential of the technology.

2. Social Commerce Integration: Plans are underway to incorporate social selling elements into the affiliate program, tapping into the growing trend of social commerce.

3. Governance Model: The team is exploring a governance model that includes community involvement in key decisions, potentially through a DAO structure.

4. Continuous Expansion: The long-term vision involves creating a truly global loyalty ecosystem, continually onboarding new merchants and expanding into new markets.

Jehl shares his excitement: "We cannot wait to bring it on chain. We call it 'we unchain loyalty' to bring it on chain."

The Bigger Picture: Revolutionizing Customer Engagement

SharingClub's approach has the potential to reshape customer loyalty fundamentally. By making rewards more flexible, valuable, and easily transferable, the platform could significantly increase customer engagement and loyalty across various industries.

For businesses, this means more effective customer retention and acquisition tools. For consumers, it translates to more valuable rewards that can be used flexibly according to their needs and preferences.

Moreover, SharingClub's use of blockchain technology demonstrates how Web3 solutions can address real-world problems in traditional industries. As more businesses and consumers become familiar with blockchain-based loyalty programs, it could pave the way for wider adoption of blockchain technology in other areas of business and finance.

Unshackling the Future of Loyalty

SharingClub represents a bold step forward in the evolution of customer loyalty programs. By leveraging Concordium's regulation-ready blockchain technology, the platform is poised to unlock the massive potential trapped in unredeemed loyalty rewards.

As we move deeper into the Web3 era, initiatives like SharingClub showcase how blockchain technology can move beyond speculative use cases to create tangible value for businesses and consumers alike. The loyalty industry stands on the brink of a major transformation, and SharingClub is at the forefront, ready to unchain loyalty by bringing it onchain to usher in a new era of customer engagement.

In the words of Lars Rostock Jehl, "Our mission is really to help people unleash this massive potential in the loyalty space."

As SharingClub continues to grow and evolve, it will be fascinating to watch how this mission unfolds and potentially reshapes the loyalty landscape for years to come.