Mobile Loyalty Startup Lootsie Raises $three.5M
Lootsie, thought-about certainly one of a lot of startups that allows builders in order so as to add reward packages to their video video games and totally different apps, is saying that it has raised $three.5 million in seed funding.
Co-founder and President Brandon Werber knowledgeable me that Lootsie has been elevating the funding progressively, in batches of some hundred thousand dollars, and the announcement truly marks the aim the place the startup is closing out the seed spherical and starting to think about a Assortment A.
Its rivals consists of firms like Kiip — truly, the ultimate time I wrote about Lootsie was when it employed its first chief working officer, Steve Cho, over from Kiip. On the time, Cho emphasised “the power of choice,” i.e., the reality that Lootsie supplies clients Lootsie elements which could be redeemed for various rewards.
Choice was moreover a theme in our dialog in regards to the funding, nevertheless Cho moreover pointed to Lootsie’s rising give consideration to the buyer loyalty. Which can sound kind of obvious, nevertheless the enterprise is often a bit robust, because of it moreover treats these rewards as a kind of selling — hopefully the sort that clients are actually joyful to see, nevertheless selling nonetheless, which builders embrace because of it brings them revenue.
Lootsie doesn’t reject that technique, nevertheless Cho said it moreover works to divide an app’s clients into completely totally different segments — the casual clients get Lootsie elements and rewards as described above, nevertheless in all probability probably the most priceless ones get big-ticket devices to take care of them loyal and entice them to proceed using the app. (Certainly one of many occasion rewards that Werber utilized in our dialog was a flowery bicycle).
Werber added that given all the attention to reengaging clients, Lootsie’s technique is wise because of it should forestall clients which is perhaps important to your small enterprise from leaving inside the first place, reasonably than attempting to “ship them once more after people have already left.”
The standard Lootsie rewards program sees spherical 7 % of consumers convert and really redeem a reward, he said. The company has moreover developed a white label program the place greater firms can provide their very personal branded rewards to clients.
As for the funding, it comes from consumers along with Tim Kendall (head of product administration at Pinterest and former director of monetization for Fb), Michael Liou (founding companion at Anvil Capital), angel investor (along with supervisor for the musician Nas) Anthony Saleh, and Brad Schwartz (founding companion at SLP Ventures).