Starbucks is considered the leader of the pack when it comes to loyalty programs. The coffee chain has enjoyed massive success as one of the pioneers of mobile loyalty solutions both with its mobile app and rewards card.
Corporations look to achieve similar results with their own loyalty programs, and Dealyze has emerged as a service that aims to conquer that goal.
The startup launched its new service Wednesday (March 18) to offer businesses a customized app and loyalty program for lower costs than its rivals like Belly and FiveStars. According to reports, Dealyze – unlike competitors – allows small businesses to include its logo, look, color scheme and other brand characteristics on the smartphone and tablet app through Dealyze’s theming application.
The company, co-founder and CEO William Baron said, emerged after building a relationship with a local pita shop, which then asked him to develop a customized loyalty app for the store. “He didn’t want to have [his loyalty program] seem like a third-party,” Baron explained, adding that the store owner was concerned about joining generic loyalty services like Groupon. Instead, Baron said, this store owner wanted his mobile app to appear as his own.
Over the next six months, Baron then collaborated with friend Mark Salpeter to develop a system that allows business users to customize the look of the app. The product eventually emerged to include the installation of an Android tablet at merchant POS through which customers can sign up for a loyalty program using their name, email address and phone number.
Customers are then sent a text with a link to download the app, which is not found through an app store, but is instead Web-based. According to Baron, a Web-based app simplified and quickened installation among users. The program also offers an optional plastic card for customers to use. Discounts are then sent by text or email to customers. Dealyze secures $0.10 for every deal redeemed.
Dealyze’s success, reports said, really took off when a franchise owner for Cold Stone Creamery purchased the service. Dealyze is now in a pilot phase with 10 Cold Stone locations. Reports say there are 30 businesses currently using the app.
The product is being used by coffee shops, restaurants, hotels, airlines, bars and a slew of other industries. According to Dealyze, companies using the app have already seen a 10-15 percent uptick in revenue.