Realizing customer loyalty management with POS and mobile phone numbers, the startup company FiveStars has another 14 million US dollars investment

A membership card is a customer loyalty management program that many merchants like to use. However, for most consumers, too many merchant membership cards are actually not the same. Unless we have set a goal before going out, we are unlikely to carry a lot of membership cards with us.

In the era of mobile Internet, many entrepreneurs have done a lot of work in this area. They integrate membership cards, coupons, discount cards, etc. into a mobile application. However, this solution compresses the range of users that can be covered very small, the customer has to be a smartphone user, and the system has to be the platform you support, and then they need to install your application. At the same time, this kind of scheme is also a challenge to the user's usage habits, so it is difficult to popularize it in a large scale.

Also providing customer loyalty management services, the startup FiveStars is supported by the well-known startup incubator Y Combinator. They solved the problem well in a way that didn't look so "high tech" and just got $14 million in financing.

The company's solution is also very simple, customers only need to have a FiveStars account, you can get the corresponding offer from the merchant by brushing the FiveStars card or signing the mobile phone number at checkout. You can simply understand it as a universal membership card, but you don't need to install any smartphone apps, and you don't even need a card to enjoy the offer.

Why are merchants willing to use this service? First, FiveStars integrates the member authentication and management system into the POS without the need to configure additional systems or devices. At the same time, merchants do not have to spend a lot of manpower and financial resources to promote their membership cards, and can directly share the members of FiveStars. The most important thing is that the merchant can directly query the user files and photos in the POS machine, and even develop personalized discounts or promotion plans according to each customer's consumption habits.

Of course, as I said before, similar things are done by other entrepreneurs, but other solutions basically require smart mobile device support. Such as the foreign LevelUp, Belly, and the domestic card that has been done very early, the pudding of coupons and so on. In addition, companies like Wallaby are doing more credit card integration.

Looking back, FiveStars is more like a consumer identity information management service provider. Customers give their information to them, and then they provide customers with a customer certification and management interface to bring convenience to both parties. This vaguely feels that Facebook with hundreds of millions of registered users seems to have the potential in this area, but social networks want to use these user resources, there are indeed many more practical problems to be solved.

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