So the idea is to create a software/app for a loyalty program for small local stores and businesses. This aims at those repeat customers and will want them to come back to the same store to buy more. I know big companies already have this kind of stuff. But if we can make the app affordable I feel this can be a good idea. Your opinions , thought and challenges you feel someone starting this kind of business can face? Note : Considering to start this business in populous country like india.
Loyalty programs are powerful in getting repeat users. There are several "loyalty in a box" alternatives in the US but think you could do an India-centric version well if you can get the merchants to accept it. Many in the US are credit card driven although the airlines have really tied people in. If you can tie it to a chat app/wallet, you will have better results. The app will need to be free for the user and have some tangible use for the points to keep users engaged. Do the local vendors you contemplate use electronic payments in any fashion?
What does your initial overview or business plan say about the opportunity?
I am still in the process of obtaining opinions about this idea. But what i feel is India has lots of local vendors and many stores dont have computerized systems or registers. We can just create an app or a code where in customer can just scan the code and points will be added to his/her account through e-mail or an app. I feel it has potential. Just trying to see if all others feel the same way.
I use a loyalty app for one of my businesses and love it, just don't love the price. Also, you might beat out the big companies too if you can find a way to help the businesses get higher engagement out of yours than theirs. Then you win on price and help the business even more than the other companies do...love the idea.
Love the idea of a loyalty program for small local businesses! Honestly that is our plan for phase 2 of my current startup, but we will be targeting the US market. The newer technologies and their widespread adoption within the small business community, has created renewed interest in this space. All the best with your startup.
Yes. In a past couple years electronic payments in India have almost doubled due to some decisions taken by the government. Most people are using mobile wallets or credit cards these days.
Hey lauren ,
Thanks for the advice.
May i know the app you are currently using for your business?
I don't think there are many big players in this particular field hopefully. It aims at local stores.
I do not want to discourage you. I have seem this idea twice in silicon valley. the latest was happened around 2013-14 when I had my 4th startup serving coupon kiosks throughout major shopping malls and 26 locations along/around Las Vegas strip. This ex-CEO from a high tech company (Nasdaq public company) saw my kiosks in the shopping malls and came to my company to discuss potential business since we were targeting the same local businesses. he had the exact idea like what you described. At that time, he had about 20 signed customers. Less than 1 yr after the initial discussion, he folded the startup. I am telling you this, just because I happen to know people had tried this idea, TWICE. You may make it works, but DO more research before you start. happy startup!
Thank you for advise on loyalty programs.
I just wanted to know y his startup failed , possible reasons so that i can be cautious
As loyalty programs are evolving, it might be good to ensure the app offers more than just monetary perks... think about how you can offer experiences and more importantly, added value to those top customers. Best of luck!