Revolutionizing Loyalty Programs: Gennady Volchek Unveils Shping's Blockchain Journey

Welcome to another fascinating edition of our "Behind the Startup" series. Today, we have the pleasure of speaking with Gennady Volchek, the visionary behind Shping, a trailblazing platform in the blockchain industry. With a rich background in leveraging emerging technologies and a deep dive into the realm of blockchain, Gennady Volchek shares his journey from early ventures in digital publishing and VOIP innovations to the inception of Shping.

We also explore Shping's unique approach to partnering with major consumer goods companies and its future goals in a rapidly changing market.

Shping's Mastermind Gennady Volchek Talks Blockchain's Role Against Counterfeits

Ishan Pandey: Hi Gennady Volchek, great to have you here for our "Behind the Startup" series. Please tell us about your background and what motivated you to venture into blockchain industry and build Shping?

Gennady Volchek: Hi Ishan, Glad to be here.

Absolutely, happy to delve into that. My journey into the blockchain realm is just another chapter in a series of ventures fueled by a passion for leveraging emerging technologies. At the age of 18, I started a publishing company in collaboration with the world's largest ethnic newspaper. Faced with the challenge of long-distance transportation and the need for news to stay current, we managed to digitize printing templates, making them downloadable via FTP—cutting-edge tech at the time :)—enabling us to print and distribute papers across Australia on the same day they hit Eastern Europe shops.

Fast forward to the early 2000s, we pioneered the first VOIP call on the public internet using Cisco hardware, cutting the cost of international calls for our members by around 90%. While I've been watching Bitcoin in the media for a few years, I started being fascinated by blockchain technology around 2016, right when Shping's universal rewards platform was in the making. That's when I realized that universal rewards should be powered by a universal ledger.

Ishan Pandey: How has Shping transitioned from its initial emphasis on product authenticity to transforming into a turnkey loyalty and rewards program for brands?

Gennady Volchek: Shping has pivoted from a track-and-trace solution aimed at assisting brands in tracking their products through the supply chain, enabling end consumers to access the product journey for authentication and province verification. Like many startups during the way of working on one solution, we have discovered additional value in our approach of connecting consumers and the brand, further reinforced by feedback from our pilot clients. We realized that both shoppers and brands were struggling with a lack of a secure and transparent channel of communication.

We quickly realized that this can revolutionize how brands market and communicate with their customers, which is a US$1.5 trillion industry. That's why we decided to develop Shping with the view to revolutionize the brands-to-consumer-to-brand communication.

Ishan Pandey: In your opinion, can blockchain effectively address the increasing complexity of counterfeit goods?

Gennady Volchek: Just for clarity, I would like to explain that our track and trace module leverages a centralised database and has been built from the ground up on EPCIS standards developed by the GS1 organization. It's important to understand that the proper implementation of industry-standard track and trace technology is capable to safeguard businesses and shoppers against counterfeit and other illicit distribution irrespective of the method of how your data is stored, i.e., centralised vs decentralised ledger and each has its pros and cons, but blockchain is not an underlying technology in that instance.

Ishan Pandey: Can you share some insights into Shping's integration with Coinbase Wallet and how it aligns with the company's overall strategy?

Gennady Volchek: In the realm of rewards programs, seamless redemption is key. While many aim to reward in some kind of convertible currency, the complexity and cost make it a challenge thats why we usualy see use of gift cards or in store discounts. Since Shping—a universal rewards platform using ERC20 utility tokens enabling any brand to instantly reward any shopper around the world.

With the app integrated with Coinbase making onramp of ramp one-click away. Imagine a shopper in London writing a review on Australian Corn Chips, earning instant rewards from that brand, converting them to Euro, and using earning towards buying those chips—all in under a minute.

Ishan Pandey:How does Shping successfully establish and maintain partnerships with major consumer goods companies, such as Coca Cola & Kraft Heinz, gaining their acknowledgement and trust? Additionally, what benefits does the platform derive from these collaborations?

Gennady Volchek: One of the biggest challenges for FMCG brands is the lack of a direct communication channel with their end customers, making them heavily reliant on retailers and social media for information dissemination. Shping breaks this barrier, allowing brands to establish a one-on-one relationship with in-store consumers. This not only enhances product knowledge and education but also enables brands to directly reward consumer engagement and loyalty. For instance, instead of paying a social media platform to showcase a new video, brands using Shping can pay consumers directly for watching it.

Shping enables brands to manage their marketing communication strategy and activate offers and specials directly without the need for an intermediary. This significant shift empowers brands to influence shoppers' buying activity while cutting one of the biggest costs of marketing. This is why more and more brands like KH, Pepsi, and Coke realise the power of Shping and making it part of their marketing strategy.

Ishan Pandey: As the winner of "Best Emerging Application Start-up Company 2023" by APAC Insider, what do you attribute Shping's success to, and what are your plans for sustaining and expanding this success in view of evolving consumer behavior and technological advancements?

Gennady Volchek: As the honored 'Best Emerging Application Start-up Company 2023' by APAC Insider, we attribute Shping's success to our commitment to purposeful innovation. Winning this award indicates that Shping is perceived as a positive force for users, a recognition we're humbled by.

Our journey revolves around reshaping how shoppers are rewarded for their value to the corporate world. Unlike traditional programs, Shping allows brands to directly invest in consumers, providing tangible rewards that ease economic stress.

Looking forward, our plan to sustain and expand this success is rooted in genuine innovation. We're not just innovating for the sake of it; we aim to make a positive impact in people's lives. In the face of evolving consumer behavior and tech advancements, our humble goal is to address economic challenges, creating a win-win for both shoppers and brands. This award fuels our dedication to meaningful innovation.

Ishan Pandey: In what ways does Shping differentiate itself from other loyalty and rewards programs in the market, and what challenges have you faced in this competitive landscape?

Gennady Volchek: Most existing rewards programs are typically run by retailers since they usually have a direct relationship with the end consumer. Rewards are often funded by the squeezed margins of retailers, which naturally cannot be very significant. Shping introduces a new concept by connecting brands and consumers, enabling brands to leverage blockchain technology to redirect their marketing spend directly to the end consumer.

This makes the rewards tangible and substantial enough to alleviate economic stress amidst inflation and the rising cost of living.

The paradox is that while shoppers receive more, it actually reduces the marketing costs for the brand. This reduction could lead to brands lowering the cost of goods, making them more affordable and further enhancing the lives of everyday shoppers.

Ishan Pandey: Looking ahead, what are the key goals and milestones Shping aims to achieve in the next 1-2 years, and how do you plan to navigate potential challenges in the market?

Gennady Volchek: The next few years look incredibly exciting for Shping. We've always viewed Australia as our test market—a place to roll out technology, test features on our planned roadmap, and pave the way for international expansion. I'm thrilled to share that our international expansion plans are already in the works. We'll be announcing our next market during our final AMA of the year, streaming live across our social channels on December 22nd. So hope Hackernoon readers could join us for our next AMA.

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