The reward tracking programs are getting hot in the Valley! TruePoints, a Chandler-based startup has entered this market as a recent graduate of the Roadmap to Launch Program at Gangplank, and runners-up to the Extreme Pitch 2012 Event. However, they have some competition. TabHere, which was just showcased by a company profile on our blog, is taking their own unique approach to this business as well. Let’s break it down.
- TruePoints: Loyal customers earn rewards when they pay with a credit or debit card at any participating True Points merchant.
- TabHere: Starting a running tab at any participating TabHere merchant in exchange for a 20% discount. Identification = your face.
- Others: Using the same old paper punch cards that always get lost! Lost paper punch card = lost rewards.
Clearly, a structural flaw has been identified in the paper punch card loyalty program. Also, the likes of Groupon and Living Social have caused many consumers to look for a deep discount or tantalizing reward offer before shopping or dining anywhere.
The TruePoints Service
To get started, customers link their credit and debit cards to the TruePoints application. When a transaction gets processed at a participating TruePoints business, it automatically gets logged under the customer’s account. TruePoints then notifies the customer via email when they are about to receive a loyalty reward from the participating business. Daniel Stone, Founder, identifies the reminder email as one way TruePoints drives traffic and loyalty to the local business. Also, TruePoints gets paid by the merchants when a reward has been given out, so it is in their best interest to keep customers coming back to local businesses!
When a business signs up to be partners with TruePoints, their internal rewards program becomes immediately streamlined. That’s right, throw away those old paper rewards cards and hole punches. The monthly subscription starts at $19, and as stated, TruePoints then bills the merchant a nominal fee when a reward is given to a customer through their program (fee not yet disclosed). Business results are yet to be determined – TruePoints is getting ready to launch in June.
So far, TruePoints has a team consisting of Daniel Stone, David Dunning, and two advisors. They are looking for seed funding to establish a sales team and scale their service.
Daniel or David understand how difficult it is to change consumer habits, so they have tailored the TruePoints reward program around users paying with their credit and debit cards just as they normally would. This means customers no longer have to carry all of those punch cards in their wallet!
To be notified of their launch, enter your email at: True Points Sign Up
IHMO, the TruePoints concept is brilliant. Perhaps they can draw on the familiarity with Airline Cr Cards to help people understand and change habits? Can’t wait for them to launch to see how they do.
Mark, thanks for the comment! TruePoints has made it clear to me that the purpose of their program is to limit punch cards, reward credit cards, coupons, etc. The point is for rewards, discounts, etc to be tracked on their program and be rewarded to the customer when the purchase with their normal credit or debit cards. I think its a great concept, and will be notifying everyone of the official launch and when you can register. Stay tuned.