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The only time that I’ve been able to redeem a filled loyalty punchcard has been when I’m buying for a group and I immediately fill the card. There’s no doubt that there’s a better solution, and it’s probably digital. The problem is that nobody wants to have an app for every local business they frequent. They want a single loyalty solution that they can use everywhere. We’re not there yet, but there are a number of companies trying to make that happen. In the past we’ve looked at a few businesses that operate in the space like Belly and Groupon (I love their product because you just have to use your credit card to get rewards from a merchant). FiveStars is a Mountain View, CA company that is keeping the loyalty card, but they’re making it universal. One physical card tied to your phone number (and your Facebook account if you want more points) allows you to get rewards at a variety of participating merchants.
Be a Star at FiveStars
The idea of offering an online customer loyalty platform to small businesses is pretty obvious. There’s a ton of competition, and there’s huge potential for a network effect–consumers and businesses are better off with one big winner. It’s still a land grab, so the keys to owning the market will be offering a superior product (for both consumers and local businesses) and gaining merchant adoption with a strong sales force. You can learn more about what they’re offering on the merchant side here. FiveStars has a total of $16.1 million in venture capital funding, so they’re ready for the fight. And a big part of that is going to hiring a team to grow the business. If you look at FiveStars’ Internships page, you’ll see that they’re currently looking for a Software Engineer Intern/Co-op in San Francisco, CA. They appear to also offer internships in Operations and possibly a few other areas, so don’t be afraid to reach out about an unlisted position if you’re not a coder.
Links to Help You Begin Your Research
- FiveStars.com
- Jobs at FiveStars
- About FiveStars
- FiveStars’ FAQ
- FiveStars in the News
- FiveStars’ Blog
How many loyalty punchcards have you failed to redeem?
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