So, what do Loyalzoo do?
We are a digital loyalty card service for small businesses. In other words, we empower independent retailers and restaurants to run an in-store loyalty programme that’s smart, uncomplicated, and delivers results. No longer do customers have the hassle of carrying around paper or plastic loyalty cards, thanks to Loyalzoo.
What’s behind the business idea?
We saw that most large retailers and brands had switched their traditional loyalty cards to tech-based tools such as apps, web, etc. The SME retail sector lags behind, and this is where we come in. We created an off-the-shelf solution that fitted the requirements of SMB’s, without the headache.
Was there a breakthrough moment?
We had a revelation when we ran our first crowd funding campaign in 2014: over 150 investors backed our idea in just a couple of days, and within about a week we raised over £200k – that’s when we said to ourselves “we’re onto something here”!
How is the company doing?
We have now grown to over 300 merchants, 100,000+ users, and we have processed over 300,000 loyalty transactions to date. Our growth is organic and based on partnerships. We partner with point-of-sale vendors, marketing agencies and payment companies, but we also get a healthy number of customers from the web (search, etc).
Do you have any regrets?
No regrets, just challenges. Our first challenge has been the confusion that many people do between discount programmes and loyalty programmes. Discount programmes are designed to attract a new customer through a massive discount. These programmes really do not work for SME businesses, and in fact they are declining. Loyalty programmes are designed to increase frequency and average spend, and generate organic growth without reducing margins.
What makes you stand out from your competitors?
Our unique selling points (USPs) are:
- Scalability – our DIY approach allows a merchant to sign up to our service, set up their new loyalty scheme, and launch in-store in less than 5 minutes
- EPOS integrations – Loyalzoo runs on most point-of-sale terminals, making it super-easy to use without changing the way the store works.
What is your definition of a positive customer experience?
When a merchant signs up to the service and when we check after a week they have over 100 loyalty members, that’s when we know that we have a kick-ass product. The good news is: it is happening more and more, and we are very proud of this!
You’re currently reaching out for investors, what do you plan to do when you have raised this funding?
As we have seen a large demand in the US (with almost 42% of our current merchants based there), our strategy is to gain investment to employ a team in the US and further deploy our service in this market. We are currently seeking £500,000 and we have almost 80% already committed. The campaign is currently live on Seedrs.
What advice would you give yourself now if you were starting a business?
In recruiting a team, employ people that are able to multi-task and can do many different things. This is very important in a start-up!
Finally, Rhiannon what is your favourite biscuit?!
My favourite biscuit is Oreo’s!! They are much like the owner of a small business, they are the glue keeping it all together and just fabulous all round