Canadian Start-Up RewardLoop Raises $1 Million in Series A Round

By: Kuljit Grewal  |   June 13th, 2012   |   Business, Mobile Apps, O Canada

Vancouver based start-up RewardLoop announced today that they had secured $1 million in Series A funding led by Madrona Venture Group in order to further expand their business. RewardLoop’s business model is a novel and original concept that allows merchants to integrate mobile device based customer loyalty reward programs easily and cost effectively. This is done by producing invoices with quick read (QR) codes that can instantly be scanned in order for points or rewards to be earned. An example of such a system would be a coffee shop that gives a free coffee with the purchase of ten items over time. Each invoice for those ten items when scanned would instantly translate into virtual stamps on a virtual stamp card within the application on the individual’s phone. The free coffee could eventually be claimed in store by showing the completed stamp card or a unique reward code.

 

With various sources identifying time and again that loyalty programs do lead to repeat purchases over time as well as increasing popularity, RewardLoop find themselves in an enviable position. The low cost and quick learning curve involved in integrating their technology allows for businesses of all kinds to instantly create reward programs without having to assign reward cards that are often left at home or misplaced. Instead, people can use their phones, which they are far less likely to leave home without.

 

Merchants are also granted the freedom of selecting the terms surrounding their rewards programs, ensuring that the parameters fit their unique product and service offerings. Of most value to these companies however, is the quality of analytical information on customer spending regarding actual dollar amounts and specific items purchased. This knowledge allows for a better understanding of core customers as well as an ability to tailor specific promotions to individuals.

 

Madronas, based out of Seattle see the potential for the company, and feel confident that their faith will bear fruit. According to Scott Jacobson, their Managing Director, the company is focusing on the next step in the company’s evolution; integrating and leveraging Near Field Communication (NFC) transactions, which will be instantaneous and simpler than the current QR model.

 

RewardLoop was recognized with the Most Promising Start-up Award at the 2011 British Columbia Technology Industry Association (BCTIA) Impact Awards, and seem keen on proving that title this year.