Superlogic Investment Thesis

Customer loyalty programs are becoming increasingly important to revenue growth and sustainability:

• Customers are 84%¹ more likely to shop with a retailer that offers a loyalty program.

• Customers who actively use and redeem points from a loyalty program spend 15-25%² more annually than other customers.

• Cost of retaining an existing customer is 5x+³ less than acquiring a new customer.

• Brands are willing to pay: the 2024 market size of loyalty management software is over $10Bn⁴.

Current loyalty programs mostly rely on a simple points system and lack customer buy-in with an average engagement rate of under 50%⁵. Superlogic uses blockchain technology to unlock a new set of value propositions for customer loyalty and engagement:

• By issuing points and digital collectibles as NFTs, customers become true owners of their assets within a loyalty program. The endowment effect suggests that the very act of ownership will cause customers to place more value on these points simply through ownership.

• Loyalty program built using interoperable blockchain technology can facilitate the “interaction” of different brands, creating unique partnerships and cross-selling opportunities. Consumers place a high value on these collaborations with 71%⁶ of consumers having a positive outlook on co-branding.

• Brands can also track their customers’ purchase history across e-commerce and brick and motor purchases using Superlogic’s solution. This data can be used to improve operations and new product offerings. Customers have shown an eagerness for brands to offer more personalized goods and services based on their purchase history⁷.

Superlogic is building a next generation software suite providing loyalty and connected commerce solutions for its enterprise clients, including American Express and Warner Music Group.

Superlogic’s software suite can integrate directly with a client’s existing technology stack to utilize blockchain technology and gamification to re-imagine and upgrade the client’s loyalty program.

Superlogic’s user-friendly loyalty solution will enable millions of people to own and utilize an NFT for the first time in their day-to-day purchases. TenSquared Capital is excited to partner with Superlogic to scale and accelerate its business.