Payments

Company Which Uses Data and Rewards to Drive Conversion Rates Raises $1M

Loyalty Bay, incorporated in 2014 and based in London, United Kingdom, has raised $1 million. The investment was led out by Talis Capital with Howzat Partners, NEON Adventures, Chris Mairs and Richard Verney participating.

The company uses rewards and incentives to drive sales, signups, referrals or product upsell for any website. It helps in converting new customers and retaining the old ones. Its features include an email list builder for capturing emails and leads from the visitors from the online website, a conversion widget that allows end users to choose their rewards, and a rewards portal which is a dedicated, personalized  Web page hosted by Loyalty Bay where users can offer rewards. Loyalty Bay’s products are all analytics-based that help online sites to figure out which rewards are working for the company and which are not, reward selection based on demographics and more. Co-founder William Roberts said in TechCrunch, “We have increased the conversion rate by over 100% working with some very large enterprise clients.”

US consumers hold 3.3 billion memberships in customer loyalty programs, says 2015 COLLOQUY Loyalty Census. More than 75% of US adults participate in customer loyalty programs like those offered by credit card companies, hotel chains and retailers. More than $50 billion worth of perceived value in reward points and miles are issued by American businesses annually. But despite the fact that the average US household belongs to more than 22 loyalty programs, they are active in only 40% of the programs. More than 30% of the reward points and miles are not redeemed annually. In the loyalty industry, Loyalty Bay can be a game changer which can resolve this issue and use the loyalty & rewards-related data to increase the customer base for online websites.

In the case of gift cards, sales of gift cards in 2014 were at $124 billion. Advisory company CEB TowerGroup estimated that $750 million gift cards were not redeemed in 2014. Companies like CardCash and Raise are two big names in the gift card company which are working towards solving this issue.

Raise, the Chicago-based gift card marketplace, allows customers to buy and sell unused gift cards for less than their cash value and lets buyers transfer the money to a mobile device. CardCash is one of the leading online marketplaces for buying and selling gift cards.

The business model of Raise is much like CardCash. Both provide the platform where users can buy and sell gift cards. One major difference is that in Raise’s case, buyers and sellers interact directly. In CardCash’s case, the company buys and sells the gift cards on its own.

Priti Thakur

Priti has keen interest in digital money and fintech startups . She completed her B-School education this year and likes to write about innovation with respect to digital payments.

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