Punchcard is a digital version of paper loyalty cards, which have been less popular over the years due to the easy ability for people to take advantage of the cards. The Punchcard app allows customers to take photos of their receipts in order to get their loyalty “points,” which then equates to cash payouts or other rewards directly from the merchants. Though this app is not the only one on the market, their marketing is a bit different. They’ve “turned on” loyalty programs for millions of locations across the US, even if the merchant hasn’t requested it. The company believes that this seeding technique will build their business faster than their competitors (Facebook just acquired loyalty play Tagtile, Google acquired Punchd, Perka and Perkville).
Currently the app works at 15 million locations in the US. As users snap photos of their receipts and input them into the Punchcard system, they earn cash, freebies and rewards (usually on the 10th purchase). The company currently offers two tiers of service “(one for $29/month, another for $99/month), which provides businesses with access to an analytics view into who their customers are, and an automated re-marketing program that pushes offers back to customers to incent them to buy again. The solution works best for retailers, restaurants, grocery stores, coffee shops, and other local businesses that want to increase the frequency of their customers’ purchases.” The company boasts “huge conversion rates” from the app download to usage and repeat usage.
For more information, check out: http://techcrunch.com/2012/04/27/barely-3-months-post-launch-loyalty-app-punchcard-live-in-15m-locations-nears-profitability/