February 13, 2014
Rewardloop was Co-Founded in May 2010 by Jeff LaPorte (CEO) and Nigel Malkin (VP, Business Development). The company has received a total funding of $1.25 Mn through investors Madrona Venture Group and Boris Wertz. RewardLoop says that it is a plug-and-play mobile loyalty platform and network that rewards customers based on merchants’ real-time POS data.
RewardLoop provides mobile marketing and mobile loyalty solutions that offer simplicity, security, and compatibility with today’s POS ecosystem. Its suite of loyalty solutions enable you to: Reward your customers for what they actually buy; Requires less than $100 to set up with no costly POS software upgrades; It is POS Compatible, i.e, it works with your existing POS and the Setup time is just 15 minutes.
For a mobile loyalty program to deliver value and be successful in our business, it needs to be transactional and secure, said Tim Kraus, Quiznos USA. RewardLoop is the only solution we've seen that meets these criteria.
Last year, RewardLoop approached Restaurant Lounge (a restaurant located in business district of Vancouver) to take part in a pilot test project which involved usage of a new mobile loyalty program. RewardLoop designed a loyalty program which rewards customers based on spend per transaction through tapping into data from Prestons existing POS system.
The entire loyalty program acted as a virtual stamp card that was accessible by the smart phone of the customers. Each visit to Prestons and a transaction meant customers collected stamps through the QR code. The stamps collected acted as loyalty points. To redeem those points a QR reader was used by the customers to get a redemption QR code. Post verification of the stamps a new transaction number is generated on the screen of the smart phone. Through this transaction number customers were able to redeem it for goods or services of their choice at Prestons. This entire cycle of sign-up, stamp collection and redemption of stamps was a self serve one and didn’t need any assistance from the existing staff, freeing up staff during peak or non peak hours to handle other manual activities.
Average spend of a customer prior to implementation of this program was $19. Customer engagement through post the launch of loyalty program went up multi folds and this was evident in their sales numbers. Their most frequent customer visited Prestons over 200 times and spent over $9,600 since signing up during the first week of the program. The top 10 customers have collectively spent more than $26,000 and visited more than 600 times. Average spend per customer on a single visit among Prestons rewards program members is currently around $37 i.e. almost a two fold increase in sales numbers since its inception in August, 2011.