RewardLoop, a startup offering a nifty new approach to customer reward programs, has raised $1 million in Series A funding.
To get started with RewardLoop, businesses need to install an adapter that connects to their point-of-sale system (namely, the technology that handles the checkout and payment process). Then, whenever someone makes a purchase, a QR code is printed at the end of their receipt, which they can scan in order to get loyalty points at the store.
CEO and co-founder Jeff LaPorte says this offers some significant advantages over the other mobile loyalty programs out there. For one thing, he says most of those programs are based on check-ins, which only tell businesses that someone has visited their store (and really, not even that, since someone could also check-in if they’re nearby). On the other hand, since RewardLoop is tied to the POS system and the receipt, it can tell businesses exactly what someone purchased and how much they paid, so those businesses can target their rewards accordingly.
LaPorte also says it’s convenient, since it integrates with 85 percent of existing POS systems and supposedly takes under 30 minutes to install. And the adapter supports NFC payment systems.
RewardLoop started commercial trials of the technology in August, and LaPorte says the funding will help it expand the merchant network more aggressively. Among the early testers, the company says that Milano Coffee, an independent shop in RewardLoop’s hometown Vancouver, started using the service three months ago. Now 23 percent of Milano’s daily transactions are being made by customers enrolled in the RewardLoop program.
The round was led by Madrona Venture Group.
RewardLoop is a plug-and-play mobile loyalty platform and network that rewards customers based on merchants’ real-time POS data. The company’s patent-pending innovations enable a merchant of any size to simply and cost-efficiently identify their most profitable customers, and engage them in individualized, transaction-based customer loyalty relationships via their mobile devices.
Madrona Venture Group has been investing in early-stage technology companies in the Pacific Northwest since 1995 and has been privileged to play a role in some of the region’s most successful technology ventures. The firm invests across the information technology spectrum, including consumer Internet, commercial software and services, digital media and advertising, networking and infrastructure, and wireless. Madrona currently manages nearly $1 billon and was an early investor in companies such as Amazon.com, Farecast, Isilon Systems, iConclude, and World...