Loyalty & Rewards

Loyalty App Lootsie Raises $3.5M

Lootsie, a start-up designed to allow developers to add reward programs to their games and other apps, has announced taking in an additional $3.5 million in funding. Co-founder and President Brandon Werber told TechCrunch that the announced take represents funding that the company took in over time though batches of a few hundred thousand dollars and that the latest announcement marks the end of seeking seed funding and the time to move on to Series A.

Lootsie is not exactly alone in this space. Kiip is a competitor, and in fact Lootsie’s COO Steven Cho was hired away from Kiip. Kiip preselects user rewards, whereas Lootsie allows users to build up points towards the reward of their choice.

Lootsie is also highly focused on creating consumer loyalty. Cho said the app works to divides users into different segments and rewards accordingly.  A casual user gets Lootsie points and rewards, but the more valuable, more loyal users get big-ticket items to keep them loyal and entice them to continue using the app. For example, one superuser was rewarded with a fancy bicycle.

The average Lootsie rewards program sees around 7 percent of users convert and actually redeem a reward, he said.

The funding in this early seed round came care of Tim Kendall (head of product management at Pinterest and former director of monetization for Facebook), Michael Liou (founding partner at Anvil Capital), angel investor (as well as manager for the musician Nas) Anthony Saleh and Brad Schwartz (founding partner at SLP Ventures).

——————————–

Featured PYMNTS Study:

More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.

1 Comment

TRENDING RIGHT NOW