[ICO] RLCoin - Solving Loyalty for Enterprise
SUMMARYRLCoin (
www.rlcoin.io) is the currency of RLClub (
www.rlclub.pro), a vibrant marTech solution established with 5 partners and 250+ brands in Europe and Asia, connecting millions of consumers. RLCoin brings trust and transparency to this mobile engagement platform.
RLClub develops white labeled mobile apps for partners (e.g. telecoms, malls, banks, and eSports communities) that rewards their consumers for brand engagement and shopping. When consumers interact with brands they like, they earn RLCoin which can be redeemed for rewards amounting to as much as $30/month.
Brands and retailers can engage with consumers directly via white-label RLClub apps, without intermediaries. They market special offers and pay for walk ins, barcode scans (for target products), purchases & receipts, social media visits, and surveys.
Here are some stats on the platform:
• Active users spend 2 hours in the apps per month
• The average duration between purchases is 11 days
• Active users complete 23 brand interactions per month
• Return on ad spend (RoAS) is 3,300%, on average
This represents a win-win-win value proposition for consumers, brands, and partners. Consumers win by learning about special offers and getting rewards for shopping. Brands win as they gain measurable direct interactions, in-store foot traffic, and incremental sales. And partners win as they earn a portion of ad revenue and see a lift in spending on their services.
The solution has 250+ enterprise counterparties, both partners as well as global brands, local brands, and retailers who are all seeing a lift in revenue.
RLClub solutions won 6 top awards at the industry events in Europe and Asia for innovation, technology, and partnerships.
OPPORTUNITY: Disruption of Digital MarketingBrands Could Pay Consumers’ Phone Bills Nearly $600bn was spent on advertising by brands in 2017, according to the industry reports. The figure includes $160bn spent on digital ads, the only segment growing by up to 30% in many countries every year.
When divided among mobile users, total ad spend amounts to $1-78 per person per month in top countries, or $10 on average. Digital ad spend is 17-51% of the total figure, or up to $30 per person per month. These funds could be used to reward shoppers for consuming ads.
Rewards can come in many forms: gift cards, tickets to an attraction, and much more. One of the most successful rewards has emerged from wireless carrier partners who reward consumers with discounts on their mobile phone bill.
The key metric in the industry is average revenue per user (“ARPU”). The exhibit below shows the total number of mobile subscribers, total ad spend per subscriber per month, and the ARPU that could be generated per subscriber by country.
EXHIBIT: TOTAL AD SPEND REACHED $10 PER MONTH PER MOBILE USER IN 2017
Source: RLClub, Dentsu Aegis
Consumers Gravitate to Apps with Special Offers & RewardsRLClub learned from online consumer surveys and its own experience with partners that shopping apps that showcase special offers and rewards for shopping get traction. Below is a brief look at the performance of other shopping apps which seems to prove the point.
EXHIBIT: CONSUMERS PREFER APPS WITH SPECIAL OFFERS
Source: RLClub, AppAnnie.com
Changi Airport Mall in Singapore has a strong following of almost 2.8 million app users of iChangi App. The app includes a directory of retailers on the property but more importantly features a robust rewards and loyalty program. Their open rate is lower than others because it requires people to be passing through the airport to provide value. They’ve justifiably earned a 3.5 star rating.
Simon Malls has 325 properties with 341 million square feet for retail space in North America and Asia. Their app has only achieved 1.5 million downloads. It features a store directory for its properties which is of limited utility. It does not showcase special offers or loyalty. As a result, it gets a rating of 2.5 stars and achieves a low open rate.
iBotta and Shopkick together have achieved over 46 million downloads over several years and each have a 4.5 star rating. Their apps are solely focused on presenting special offers and providing rewards for brand engagement and purchases. iBotta has 1.8 million daily active users and Shopkick has 1.5 million. Both have achieved admirable open rates which show the depth and frequency of use.
RLClub intends to further its plans to be the mobile engagement platform that powers partners’ branded shopping apps, providing special offers and rewards to consumer. In our experience, these partners often have a known brand following and can more efficiently gain market share in both broad and niche markets.
Digital Ads Suffer from Fraud and MonopoliesThere are two major consumers of digital advertising dollars today: 1. monopolies of search and social media, and 2. fraudulent actors.
It is no secret that fraud is a major problem in digital advertising today. A study completed by comScore in 2012 and 2013 came to the conclusion that 54% of digital ads were never shown to a human, though they were presumed to be counted as impressions in someone’s ad budget. There are some more innocent reasons for this but more often than not this trend points to darker tactics being used by fraudulent actors: pixel stuffing (where an ad designed to appear at 1,024 by 480 pixels is crammed into a one-by-one pixel square), ad stacking (where multiple ads are programmed for a single slot), and the use of bots (software programs designed to mimic the activities of human browsers). CNBC estimated that businesses may have lost as much as $16.4 billion due to advertising fraud in 2017.
Many people have the perception that mobile experiences less fraud but that isn’t the case. AdAge writes, “But mobile fraud is rampant because it is super simple: Bad apps are loading tons of ads in the background when the app or device is not even being used by the users, and fake mobile devices simulated in data centers are downloading and installing apps and then opening them every day and interacting with them to trick all fraud detection algorithms.”
In this atmosphere, advertisers are understandably cautious about their advertising investments. Enter blockchain which The Economist calls the “trust machine”. RLCoin introduces the benefits of blockchain efficiency and transaction transparency that is missing from centralized loyalty models. It includes transaction level reporting so there is no guess work on what occurs in a campaign. If Adidas bought a coin for a campaign, they will be able to see that Peter Smith engaged in their campaign two days later. Now brands and retailers can buy unique advertising with the certainty that real people are engaging.
The other major consumer of digital advertising spend are the monopolies and duopolies of search and social media: Google, Facebook, and Amazon in US, Europe, and parts of Asia; and Alibaba, Baidu and Tencent in China. For example, in the US Google and Facebook’s market share is dominant: “Google’s share of U.S. internet search advertising spending is about 78 percent, according to eMarketer. Google and Facebook Inc. together control about 56 percent of the U.S. mobile ad market.” The Economist calls Facebook, Google, and Amazon “Tech Titans” who dominate search, social media, and online shopping and are “bad for consumers and competition”.
EXHIBIT: BOOSTING MOBILE USERS’ ARPU BY UP TO $30
Source: RLClub
In short, today $170 billion is consumed by intermediaries and the consumer doesn’t get a penny. In the RLClub model (powered by RLCoin), the consumer is the direct beneficiary. As shown in the image above, in our model, advertisers pay RLClub to generate brand engagement and in-store traffic. RLClub keeps roughly 20% and pays its partners while an active user is the direct beneficiary, earning up to $30 in rewards per month.
RLClub PLATFORM: Win-Win-Win SolutionUse Case: Consumer Earns Up To $30 Per MonthConsumers win from using RLClub apps. A 2017 US consumer survey showed that millennial women (aged 18-35) want to know about special offers and gain rewards while shopping. They gave the app concept 3.7 out of 5 stars and 86% said they intended to collect coins at least once a week.
Consumers gain RLCoin via a dozen mechanics such as by visiting sites on-line (earning $0.01 to $0.50 per interaction), engaging with products and stores (earning $0.10 to $1.00 per interaction) and making purchases (earning a fixed amount or % of the purchase value) which results in earnings up to $30 per month.
EXHIBIT: USERS EARN RLCOIN VIA A DOZEN MECHANICS
Source: RLClub
Use Case: Advertiser Secures RoAS of 3,300%Advertisers win with in-store traffic and incremental sales. The return on ad spend (“RoAS”) that RLClub’s average advertiser gains is 3,300%. That means that for every dollar spent on the platform, they make $33 in incremental revenue. Some experience better results.
For example, a campaign may spend $100 on the platform. It results in online visits (at $0.01 / interaction), contacts with products or stores (at $0.20 / interaction), or actual in-store purchases (at $1 / interaction) amounting to $800 to $12,000 in incremental revenues.
EXHIBIT: EVERY $1 SPENT ON RLCOIN BRINGS $8…120 IN NEW REVENUES
Source: RLClub
EXHIBIT: 250+ GLOBAL AND BRANDS HAVE ENJOYED ROAS 3,300% DELIVERD BY RLCLUB
Source: RLClub
Use Case: Partners Boost Revenues by 4…28%RLClub made a strategic bet that partnering with leading partners (e.g. telecoms, malls, banks, and eSports communities), it can gain market share much more efficiently than building and marketing a stand-alone app. That bet has had traction for both RLClub and its partners.
Partners benefit by gaining a branded shopping app, without having to develop any of the infrastructure while getting a boost in ARPU. Across all of our partners, A/B analysis has shown that consumers that use an RLClub app like to save a little and splurge a little with new earnings.
Wireless carriers and telecoms have been some of our most successful partners. Millennials take their mobile phones with them to inform their shopping experience. With a white labeled app, wireless carriers can capitalize on this experience by providing a shopping app that pays them for interacting with brands and retailers they prefer. Benefits to the carriers include providing unique value for their consumers, gaining new insights on consumer behavior, and raising ARPU and reducing churn. For the consumer, their reward can include making payments for wireless services. For example, the wireless carrier gives an opportunity to earn +$10/month with their shopping app. On average, consumers usually spend about $50 on their wireless bill. When the consumer earns extra $10, we’ve seen them use $5 to save on their bill and spend $5 on extra services such as mobile apps, cloud services, roaming.
Shopping malls and retailers are seeing the “mobile first” connected millennial generation seek new ways of shopping. With RLClub, shopping malls and retailers can have their own branded shopping app that “gamifies” the shopping experience and pays consumers for their interactions. Benefits include driving measurable in-store traffic, increasing revenues, creating interactive experience for millennials, and countering online retail. With malls, consumers may spend $100 while using the mobile shopping app and gain $10. They then splurge a little while redeeming gift cards at shopping mall.
EXHIBIT: RLCOIN BRINGS HAPPY CUSTOMERS TO OUR PARTNERS
Source: RLClub
With RLClub, banks and credit union partners build loyalty with customers by rewarding shopping interactions that retailers and brands pay for. They provide an app millennial consumers will use that can reward them by adding funds to their account and or utilizing rewards through an existing loyalty program. Banks benefit from providing unique value to their clients, extending rewards program to include brand engagement and shopping, higher purchasing values, higher fees, and gained funds go back on card.
eSports is one of the most dynamically developing segments of the gaming industry and is a growing partner category for RLClub. When a consumer is viewing and playing eSports, they may pay with that ecosystems currency. However, when engaging with brands within that environment, based on the RLClub engagement platform, they will be rewarded with RLCoin.
While results vary, after thousands of campaigns RLClub can say that partners benefit from reduced churn (the rate at which consumers leave your service) and increased average revenue per user (“ARPU”). For example, as shown in the image below, TELCO-A, a wireless carrier, has 16% of its consumers engaged, experienced a 10% reduction in churn, and 7 to 12% improvement in ARPU.
EXHIBIT: WE BOOST PARTNERS’ KPIS – HIKE ARPU, CUT CHURN
Source: RLClub
The mall example shows it has had 150 campaigns and experienced a 21% lift in ARPU. And a bank has seen strong engagement and a 17% increase in ARPU as a result of the partnerships.
Oracle PartnershipRLClub is in the ORACLE Partnership and Acceleration Program and sees its partnership as strategic to its future. RLClub is integrated in the Oracle Cloud: it stores its data and gains ad campaigns.
EXHIBIT: FITTING INTO ORACLE CLOUD MARKETPLACE
Source: RLClub, ORACLE
RLCoin: Token of TransparencyBusiness Logic Is TransparentWith a blockchain based model, the transactions are transparent. Tokens are sold to advertisers (e.g. brands and retailers) at a premium. RLClub keeps roughly 20% and passes on funds to the partner. The partner promotes the app and utilizes the platform to promote brand engagement ads.
EXHIBIT: BUSINESS LOGIC: ENABLING REWARDS FOR AD CONSUMPTION
Source: RLClub
ICO: Funding ExpansionDetails
• Code: RLO
• Amount: 2,300,000,000 tokens
• Sale price: 1 CLR=0.00001 ETH
• Protocol: ERC20 (initially, will switch to a more robust protocol in 2018)
• Soft cap: 3,000 ETH, Hard cap: 8,000 ETH[/li][/list]
Use of Proceeds• Allocation:
o Year 1
Public sale: 35%
Strategic Partners and Ecosystem: 25%
Holding Company: 25%
Lock up for 3 years: 15%
o Year 2 – 5
Public: 80%
Holding Company: 20%
• Use of Proceeds:
o Operations: 30%
o Product development: 70%
EXHIBIT X: TOKEN SALE PLAN
Source: RLClub
ROADMAP: Scalability Is Picking Up2014
• Team set up in Europe
• Mobile Engagement Platform proposal accepted by a telecom in Europe
2015
• Three telecom partners in Europe
• First partner in Asia - a shopping mall
2016
• Top awards for Most Innovative Loyalty Program
• First telecom partner in Asia
2017
• Two new B2C interface options – SDK and a chatbot
• Four prizes at APAC Loyalty & Engagement Awards
• First partner among banks (Europe)
EXHIBIT: PARTNERSHIPS ROADMAP: FROM 0 TO 300M AUDIENCE IN THREE YEARS
Source: RLClub
2018
• ORACLE Partnership and Acceleration Program
• ICO
• Expansion to two large Asian markets
• First shopping mall partner in Europe
• First partners in the US
2019
• Software to be offered on GitHub
• Platform to expand across communities
• Eco-system to reach 1,000+ clients
2020
• Number of users to reach a billion people
• Hundreds of millions of mobile users get telecom services for consuming relevant ads
EXHIBIT: PRODUCT DEVELOPMENT ROADMAP: BOOSTING USER ENGAGEMENT
Source: RLClub
BENCHMARKING: Benefits and AwardsRLClub Apps Provides Win-Win-Win SolutionThe diagram below summarizes the value that users, brands, and partners gain from the RLClub engagement platform. Users benefit from discounts, +$30/month in rewards, and relevant offers based on their preferences. Brands gain sales, targeting, and a more engaged audience for their ad spend. Partners see 4% to 28% improvements in sales due to the rewards program.
Compared to other shopping apps, RLClub shows significant value to all three actors in the ecosystem. While users gain discounts, they don’t see near the amount for rewards opportunities. Brands do see sales but don’t benefit from targeting and a recurring engaged audience. Lastly, partners see no benefits from competing applications.
EXHIBIT: RLCLUB APPS DELIVER MORE VALUE TO USERS, BRANDS, AND PARTNERS
Source: RLClub
Top Industry Awards2016 – WINNER
• Best New Loyalty Marketing Project
• Loyalty Marketing Forum
2016 – WINNER
• Best Digital Loyalty Program
• Loyalty Marketing Forum
2017 – FINALIST
• Loyalty Program of the Year
• APAC Loyalty & Engagement Awards
2017 – SILVER
• Best Use of Technology
• APAC Loyalty & Engagement Awards
2017 – SILVER
• Best Use of Partnerships
• APAC Loyalty & Engagement Awards
2017 – BRONZE
• Most Innovative Loyalty Program
• APAC Loyalty & Engagement Awards
EXHIBIT: SUCCESSFUL PLATFORM IN ASIA AND EUROPE
Source: RLClub
TEAM: Execution TalentEXHIBIT: THE TEAM OF EXECUTION TALENT
Source: RLClub
Andrei Roudenko• Founder, CEO Asia
• Lead multiple startups for international consulting firms, banks and VCs
Max Roudenko• Co-founder, CEO Europe
• Built successful B2B2C teams for both global corporations and new companies
Evan McDonald• Director, USA
• Launched multiple third-party apps for a top US carrier
Marcus Pennier• Advisor
• Established APAC sales team for a prominent B2B IT company
Malcolm Tan• Advisor
• Authored a book on ICO/ITO
LEARN MORE• RLCoin site:
www.rlcoin.io• RLClub site:
www.rlclub.pro• Telegram:
https://t.me/rlcoinico• Aricle - "How Brands Drive In-Store Traffic and Reward Consumers":
https://medium.com/@evan_94189/how-brands-drive-in-store-traffic-and-reward-consumers-774564804a09
