Image by Kyle Gregory Devaras

Whitepaper

Introduction

Cryptocurrency is the next step in the evolution of money in the digital world. With the recent rise in the value and adoption of cryptocurrencies, there will be an increased appetite for real world application of blockchain technology to solve existing problems, optimise existing solutions and streamline access to products.

 
Decentralized Finance (DeFi) is an emerging industry to spearhead the financial application of blockchain technology and cryptocurrencies with a view of disrupting financial and main stream intermediaries. One industry of enormous growth and potential is the loyalty rewards market. In 2021, the market size is projected to be in excess of US$7 Billion and is expected to grow to over US$25 Billion by 2027. That is the kind of size and growth potential that Shrew wants to target!


The loyalty rewards market is one of the most entrenched and least technologically advanced sectors within traditional commerce. The industry here is rife with inefficiency, ineffectiveness and oftentimes disregard for customer benefits at the expense of the companies offering rewards. Along with the growth prospects, vast internet adoption and the rise of blockchain and cryptocurrency technology, we see an enormous opportunity to capture a significant share of the market.

Our Mission: Shrew stands for SHopping REWards. Our mission is to revolutionize rewards points by building a community backed cryptocurrency and rewards platform that will offer a universal rewards token that is fungible, secure and easily accessible. One token to rule them all!

Our Vision: Create the world’s largest loyalty rewards platform with a universal token that can be exchanged or used like any other currency. Democratize the reward points industry for all merchants and consumers.

Current Landscape

Loyal customers are a hot commodity for ecommerce business and high-street retailers. The cost of acquiring new customers is on the rise and strong competition further increases the effort and cost required in doing so. Therefore, it is no surprise that a band of loyal customers that values a brand creates huge competitive advantage.

Below is recent research as collated by Chris Salchi (a contributor at Forbes) in a recent article he published (https://www.bigcommerce.co.uk/blog/customer-loyalty-blockchain/#customer-loyalty-programs-need-an-upgrade)

 

  • Repeat customers generate 40% of a store’s revenue.

  • 62% of millennial shoppers and 54% of the larger population tend to only buy from their preferred brand.

  • The top 10% of customers spend 3 times more per order than the average customer. The top 1% of customers spend 5 times more.

Overall, loyal customers spend more, are more likely to convert when they visit your site, and are more likely to become brand promoters and champion your brand to other potential customers.

Since loyal customers are such a hot commodity, it’s no wonder that brands are spending more to court them. Of Fortune 500 companies surveyed, 54% said they would be increasing their loyalty program budgets in the 2017-2018 fiscal year.

 

For a long time, ecommerce and brick-and-mortar stores have used loyalty programs to encourage repeat business. Traditionally these programs have been used as a tactic to encourage repeat customers by offering points and discounts.
 

Sometimes involving cards or complex registration processes, these programs are beginning to fall out of favour with modern customers. Instead of heightening the customer experience, they can actually have the opposite effect — dampening customer enthusiasm with complex rules and transactional rewards.
 

Shrew, will use blockchain technology to revolutionize customer loyalty rewards by eliminating the pain points of traditional programs and enhancing the customer experience.
 

Revolutionizing Reward Points with Shrew

In ecommerce, it is usually quick and easy for a consumer to sign up for a retailer’s loyalty program. But how many of your customers are actually becoming a loyal advocate to the brand?

Traditional loyalty programs suffer from the following issues. 
 

Lower Redemption Rates

Perhaps because of the large number of loyalty programs in the market, it’s easy for them to get lost in the shuffle, and points go unredeemed. Surveys show that the average American is a member of 7 loyalty programs, and 30% of American consumers never redeem a single point. Until those points expire (if they ever do), they just sit there as a liability on a brand’s bottom line, having failed at earning repeat business.

High Costs

Large stores and successful ecommerce shops often pay high prices to setup and maintain their third-party integrations or custom solutions for customer loyalty programs. Whether they are making adjustments to an existing app or building their own from scratch, developer and maintenance fees can range from $2K – $15K a month for an enterprise-level solution. Understandably, if you are not seeing a strong ROI from reward program costs, it’s not worth it to keep the program.

Few Customer Incentives

Today’s loyalty programs tend to favour the company providing them, instead of the consumer. For example, customers are forced to make purchases they don’t need in order to reap the rewards.

Research also indicates that 33% of millennial consumers dislike reward programs simply because there are too many cards to carry. If your loyalty program isn’t fostering a positive relationship with your consumers, what’s the point of it? 

Security Concerns

Some consumers may be wary of data breaches and the security of the information they give out when joining a loyalty program. A Harris Poll found that 71% of consumers were less likely to join a loyalty program that collected personal information beyond just name and phone number. They are right to have some concerns. In 2017, 11% of attacks on financial accounts were specifically on loyalty accounts, an amount that had risen from 4% the year before.

Cases for Loyalty Tokens

Blockchain technology can solve these issues with traditional ecommerce loyalty programs by connecting owners and users of multiple programs and replacing them with a single platform and rewards currency.

 

This technology can simplify the process of applying and keep consumers from having wallets overflowing with rewards cards or passwords to multiple different reward accounts.

 

Through blockchain, users can receive and redeem loyalty tokens that are interoperable across multiple programs.

 

These tokens never expire or lose value, unlike traditional reward points. Here are a few of the advantages to this type of system.

Open Systems

Owning a blockchain token cannot be revoked and is recorded publicly on the blockchain. The issuing company cannot take away those points due to some internal policy. This is both a win for the consumer who doesn’t have to worry about their points expiring or being devalued before they can use them, and a win for businesses who gain greater customer loyalty by providing a better and more transparent customer experience.

Less Clutter

Blockchain tokens can be used at other stores, switched for different cryptocurrency, or stored for a future time. That means consumers won’t have to juggle 600 Vons points, 50,000 American Airlines miles, and 10 sandwich card stamps.

More Flexibility

With blockchain loyalty tokens, customers have more freedom in how they redeem their tokens, including being able to redeem them in smaller increments. One of the complaints many customers have with loyalty programs is the complex point accrual systems and limited rewards, so allowing for more flexibility in how they use the rewards they’ve earned is a huge plus.

Reduced Costs

Program costs won’t take years and hundreds of thousands of dollars to implement and maintain. Because of Blockchain’s native ledger, you already have a loyalty record. With Shrew, the merchant will only require a POS terminal that nearly every merchant already has to accept card payments. No additional infrastructure is required on their end as all complexity will reside on the Shrew platform. Shrew will therefore open up the reward points ecosystem to any merchant of any size, in essence democratizing the reward points industry.

Overall Transparency

Users will know that companies cannot change rules or blockchain token amounts based on their will. This gives customers satisfaction that they can redeem what they want, when they want.

Less Fraud, More Security

Blockchain is based on P2P systems, meaning there is a far less likely chance of a breach in the program or in your store in general. All necessary information is stored on the immutable blockchain ledger. The time-stamped database entries are irreversible preventing issues of fraud and transaction manipulation.

Access

Ability to send your reward tokens to friends and family with easy. You own your tokens and can send, trade or spend them with whoever you please.

Better Analytics

Merchants within the Shrew Ecosystem will benefit from combined customer analytics. Data will be anonymized and aggregated to conform to GDPR standards but will give retailers a gold mine of analytics data to optimize their strategies. This will lead to competitive advantage and will be a big incentive for retailers to join the Shrew Ecosystem along with customer growth and retention.

The Shrew rewards platform will integrate a number of core components to deliver a seamless experience to both merchants and customers. The components of the platform are listed below:

  • Application – A Shrew application for iOS and Android which will allow customers to track, earn, spend and send SHREW right from their phone

  • Merchant portal – A portal for merchants to purchase and manage their Shrew loyalty rewards program

  • SHREW Token – the universal loyalty rewards token. Fungible and exchangeable into any fiat or other cryptocurrency via exchange listing

  • Partnerships – partnership with payment service providers (including card issuers Visa/Mastercard) to provide an e-wallet. E-wallet app and debit card to customers so they can easily earn SHREW without the need for many loyalty rewards cards

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Shrew Rewards Platform

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App

The Shrew app will combine a number key features to give customers multiple benefits over traditional loyalty rewards program providers. The key features are:

  • Ubiquity – The app will be available on iOS, Android and as a webapp giving customers ease of access and convenience whether at home or on the go

  • E-Wallet – the app will provide customers with an e-wallet to deposit, transfer and store their fiat balances

  • Debit Card – a physical and virtual debit card which will make it easy to spend and earn SHREW without the need for other loyalty rewards or payment cards.

  • SHREW Token – The ability to view, transfer, exchange and spend your SHREW tokens

  • QR Code – a unique QR code for each customer so they can easily earn SHREW right from the app when spending at participating merchants

  • Payments – integration with ApplePay and GooglePay will make it easy to pay and earn SHREW without needing anything more than the Shrew app.

One of the key components of the Shrew ecosystem is a physical and virtual Shrew debit card which will work with all POS systems and all online payment providers, giving Shrew customers the ability to easily earn, spend and trade SHREW.

We are aiming to partner with major card issuers, including Visa and Mastercard to provide a seamless and simple payment experience to our customers.

Payment Card

SHREW Token

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The SHREW token is the native token of the Shrew ecosystem and is the universal rewards token which offers the following benefits over traditional loyalty programs:

  • Secure – Powered by next-generation blockchain technology with a distributed ledger which ensures that consensus algorithms, and not corporations, enforce security

  • Fungible – A cryptocurrency is essentially just like a traditional currency in that it can be exchanged for other fiat and cryptocurrencies

  • Accessible  - Easily access the token balances and earn, spend and trade the SHREW coin on the application or your own crypto wallet

  • Seamless – One universal token replaces all of your various reward points and eliminated the plastic rewards points cards.

Market Size

The current global loyalty management market is approximately USD$7 Billion in 2020 and is expected to reach USD$25 Billion by 2027. That is an annual growth rate of 20%! That is an exceptionally high industry growth rate, for an established industry with no demand risk.

The above is what we define as the Total Addressable Market (TAM). We recognise that we must focus on specific sectors within the overall industry, which we will define as what we believe to be most open to the adoption of SHREW as the universal rewards token. We are initially going to focus on Small and Medium Sized Enterprises (SME’s) operating both in the e-commerce space and/or physical stores. We define this as the Serviceable Available Market (SAM).

Within the SAM, we believe that we can capture an initial percentage of the market and continue to expand as we mature. This we define as the Serviceable Obtainable Market (SOM) and will be our main area of focus.

We take a simple approach for the current year and estimate the SAM is 20% of TAM and we aim to capture 20% of SAM. Which equates to a potential of $240 Million capture of revenue for 2021. With a 20% annual growth rate is estimated to be worth $860 Million by 2027 with no additional market share captured by Shrew. We believe there is massive upside potential to these conservative estimates!

We understand that partnerships are going to be one of the key components of building the Shrew ecosystem. As such, we envision a partnership with the following segments as being the most important.

  1. Merchants – Onboarding merchants on to the Shrew loyalty rewards platform is one of the pillars of our focus

  2. Payment Service Providers – partnering with payment service providers and card issuers to ensure we provide a seamless e-wallet and payment service to our customers

  3. Exchanges – listing the coin on multiple exchanges across multiple fiat and other cryptocurrency pairs is critical in ensuring maximum fungibility of SHREW

  4. Marketing Agencies – Promotion of the Shrew Ecosystem and the SHREW token to consumers and retailers to foster adoption.

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Partnerships

Potential Partners

Tokenomics

BEP20 Token

The SHREW token is a fully compliant BEP20 Binance Smartchain token. There are several reasons why we have opted for a BEP20 token over other networks, some of which are:

  • Relatively low transaction costs: The current cost of transferring $1,000,000 worth of SHREW tokens is $0.04 (at the time of writing). In comparison, the cost of doing the same on the Ethereum network can be 1000x higher, or more, depending on congestion on the network.

  • High-speed block creation: In recent tests when distributing SHREW tokens to our investors, we found sending large amounts of SHREW did not take more than 8 seconds to reach the buyer. Again, using Ethereum as an example, blocks can take several minutes or sometimes up to an hour to create, depending on network congestion.

  • Mining on the network is more environmentally friendly: Bitcoin and Ethereum currently use a proof-of-work (PoW) algorithm to solve complex mathematical problems and form a consensus to verify a block. The PoW mechanism creates a world-wide competition to solve the mathematical problem and thus results in very high power consumption due to competing actors in the network attempting to outperform each other with high-powered mining hardware. The Binance Smartchain network uses the Proof of Staked Authority (PoSA) mechanism. It's a hybrid between Proof of Authority (PoA) and Delegated Proof of Stake (DPoS). This consensus model can support a short block time and low fees and it only requires 21 validators to run. Validators take turns to mine (verify) blocks which results in a much more power efficient mining process.

  • Ability to utilize Pancakeswap as a first exchange: Using a BEP20 token means we can immediately utilize the Pancakeswap exchange and list SHREW on an exchange immediately after the presale comes to an end. Pancakeswap is one of the largest decentralized exchanges on the planet with over $600 million of trading every month (at time of writing).

Contract Specifics

•    Token Name: SHREW
•    Contract Address: 0x0c13970d3c5db20d48446a24e29fb9a77cd60de4
•    TechRate Audit: Passed
•    Max Supply: 100B
•    Supply Burnable: Yes (burn cycles to be announced)
•    Mintable: No – supply cannot be increased, only reduced.
•    Network: BEP20 (BSC)
•    Liquidity Pool – a minimum of 30% of amount raised to be added to liquidity pool to allow sufficient trading liquidity on launch. Amount is likely to be increased but we have quoted the guaranteed minimum.
•    Tax: None
•    Token Tracker: https://bscscan.com/token/0x0c13970d3c5db20d48446a24e29fb9a77cd60de4 

Price Curve and Sales Stages

The price of the SHREW token will double at each round of the sales stage. Once SHREW is live on the Pancakeswap exchange, the price will be dependent on market supply and demand. We expect the price of the token to increase upon listing on exchanges and inclusion on price aggregation and statistic sites such as Coinmarketcap.com and Coingecko.com, however, this is not a guaranteed outcome as ultimately the market will decide the future price of the coin. We state the projected trajectory curve of the coin as compared to other coins that increase in value when listed on Coinmarketcap.com & Coingecko.com.

 

Presale Stage 1:

  • Starts 17th May

  • Ends 16th June

  • 10B max amount.

  • $0.0005

 

Presale Stage 2:

  • Starts 17th June

  • Ends 17 July

  • $0.001

 

PancakeSwap Exchange Listing

  • Starts 17th July

  • $0.002