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Is digital loyalty a bigger hurdle for smaller retailers?

January 25, 2016Written by Tom Ryan

Source: FiveStars

Smaller retailers that have long faced pressures competing on price with larger chains must now also compete on personalization through their loyalty programs. That's according to Victor Ho, CEO of FiveStars, a mobile loyalty provider which last week raised $50 million in a series c funding round. "The overarching goal is to bring the customers back in more often," Mr. Ho told Techcrunch. "We do that by helping merchants collect data on things like what customers are ordering, and through our tools we have a CRM and marketing automation suite to reach out and engage customers." Charging retailers about $300 a month, FiveStars enables shoppers to sign up for a rewards program with an in-store tablet that's integrated into the store's POS system. Members then check in with visits or purchases via an app or phone number. Aligned to purchasing data, marketing and promotion messages are automatically sent via mobile app, text message or e-mail to members, including rewards and special offers to bring back lost customers as well as special rewards on birthdays. FiveStars also enable store staffs to identify every customer by name as they enter the store and provide personalized service in-store. In its fifth year, FiveStars claims to have driven over 35 million visits across 10,000 small businesses in North America in 2015. "Our vision is to make commerce as personalized offline as it is online," said Mr. Ho in a statement. Competitors such BellyCard and Dealyze also promise loyalty solutions for money- and time-constrained storeowners. Beyond a set fee, Dealyze charges as deals are clicked and redeemed by members, as well as for deals redeemed through referrals. In December, Belly updated its app to enable merchants to gain insights into customer frequency and the ability to set up and send automated marketing campaigns from their smartphones. Said Logan LaHive, CEO at Belly, in a statement, "We are empowering business owners to connect with their customers, no matter where they are."

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