Appsolutely CEO Patrick Paul Palacios: “Blockchain Solves the Fundamental Problem of Loyalty Programs”br>
Patrick Paul Palacios is the Founder, President, and Chief Executive Officer of Appsolutely, the blockchain omnichannel loyalty solution.
The company recently unveiled its LoyalPlatform, LoyalCoin (LYL), and LoyalWallet, attempting to unify the complex and disconnected $1.68 billion loyalty industry and ensure that the value of “rewards” is converted into commerce. The platform is the foundation for a new “Loyalty Economy,” a next-generation ecosystem in which consumers can use a single currency (LYL) to redeem and exchange benefits from any participating brand anytime and anywhere. Appsolutely’s technology provides an opportunity for brands to engage and build stronger relationships with consumers.
Palacios founded Appsolutely in 2013 after seeing the huge growth potential for customer loyalty and e-commerce in Southeast Asia. He led the company in creating the first white-label mobile loyalty app in the Philippines, which also includes e-commerce and analytics features.
Prior to establishing Appsolutely, he went on a stellar two-decade run as a tech entrepreneur and executive. At Ilios Resources, where he was also founder, president, and CEO from 2006 to 2013, he was instrumental in the development of network technology for call center clients such as NTT Docomo. At Helius Corp., which he also founded and led from 2003 to 2008, he provided Internet and Virtual Private Network services for the US Embassy in Manila, Convergys, Telus, and more.
He also held executive positions at telco and tech conglomerates such as Digitel Telecommunications Philippines Inc., Globe Telecom, Nortel Networks, and Lucent Technologies. He is an Industrial Management Engineering graduate, with a Minor in Mechanical Engineering, at the De La Salle University in Manila.
He founded Appsolutely to serve as a solution to the challenge of building deeper, richer ties with their customers, regardless of the technology in any region. He also sees blockchain technology as the future of customer loyalty and the basis for a loyalty ecosystem that unlocks more possibilities and uses of loyalty points for merchants and customers. With this in mind, he created LoyalCoin and is leading its overall concept, direction, execution, and aspirations.
Appsolutely will make LYL tokens available through an initial token offering (ICO) on December 11.
BLOCK TRIBUNE: What’s the most important element of a rewards program?
PATRICK PAUL PALACIOS: The most important element of a rewards program is its engagement. Based on our experience, a rewards program starts to pay dividends if 25% of the total transactions are rewards transactions. The higher the engagement, the higher the average spend of returning customers.
We’ve also found that people are more engaged with rewards programs that offer more accessible rewards. That’s why we’re bringing loyalty to a decentralized blockchain platform with the LoyalCoin, to provide consumers with more fulfilling and accessible rewards redemption on the backend.
BLOCK TRIBUNE: How can a business best measure the effectiveness of a loyalty rewards program?
PATRICK PAUL PALACIOS: There are several metrics that can be focused on: Average spend, average visits per month, top products, demographic reports, top outlets to name a few. But really, a successful rewards program is fueled by participation and utility. It’s a nice to receive a gift or reward, but it doesn’t fully impact you until it becomes something you use and/or see value from. That’s when it goes from “a gift” to “the gift.” It’s a subtle, but important difference. That’s what we’re going to unlock with blockchain and the LoyalCoin.
BLOCK TRIBUNE: What should business owners consider before creating a loyalty program that offers extrinsic motivators?
PATRICK PAUL PALACIOS: First and foremost, they must have a clear objective for the rewards program. Is it to increase the average spend? Is it to acquire new customers? Are the rewards appealing to the customer? A lot of the retailers tend to offer straight rebates which are good but not enticing enough for the customer. Customers want flexibility in their rewards program. Customers want to actually be able to put their points to use, even if it’s with another brand or vendor they frequent. This is where the LoyalCoin bridges the chasm for consumers between being provided with a reward and actually redeeming it.
BLOCK TRIBUNE: Why is blockchain believed to be the future of loyalty programs?
PATRICK PAUL PALACIOS: Blockchain solves the fundamental problem of Loyalty Programs. Consumers are not happy that they carry too many loyalty cards, and they get frustrated when they only get to use their points for a specific merchant. This results in failures of loyalty programs due to low engagement.
By converting rewards points into digital assets or tokens using blockchain, tokens can now be used
by the customer at any establishment they prefer. This results in higher engagement and higher sales to the merchant.
BLOCK TRIBUNE: What is needed to develop a functional blockchain network for loyalty rewards program providers?
PATRICK PAUL PALACIOS: What is needed is a clear vision of the loyalty program. Having a clear vision will help the developer assemble the right team. The right team consists of loyalty program experts, data scientists, expert blockchain developers and a strong digital Marketing team.
BLOCK TRIBUNE: What do you hope to accomplish with your ICO?
PATRICK PAUL PALACIOS: We will use the funds to expand into Southeast Asia and North America. We will also use the funds to strengthen Research and Development (R&D) and Business Development.