How we came up with the Retroclaim feature

The Problem

The story we like to tell about how we came up with the “Retroclaim” feature goes like this: My partner and I were trying out a restaurant chain close to our office. While we were having lunch the waiter asks us if we were interested in participating in their loyalty program that would give us the possibility to earn some free meals. We said we were interested, so the waiter pulled out a long paper application form for us to fill out in order for us to enroll to the program. That was a major set-back, we actually liked the place and could foresee going back, but we were really not motivated in taking time to fill out forms and giving our personal information before even getting close to redeeming the rewards. That is when we came up with the idea that our mobile and online loyalty system had to overcome that same barrier that so strongly discouraged us from signing up to the program.

The fact is that in the physical world, the solution to our problem at the restaurant has been around since a few decades. Many supermarkets for example allow customers to collect loyalty stamps for every “x” amount of purchases. Then when the customer has enough stamps to redeem a prize (for example the toaster), the customer fills out the registration form, supplies the personal data and receives the gift.

Our Solution

kooma·looma was built from the very beginning on this second paradigm. It is the first loyalty program that allows mobile and online users to collect points even before signing up to the program. The user experience is the following: the online shopper will see how many points will be earned if a purchase is made on our partners app, mobile or web site. Once the purchase is completed, the points are issued to the user. If the user is a registered member these points are added into the member’s account. If instead the user hasn’t signed up to the program yet, we keep track of the points issued in an anonymous account. The “anonymous” user can at any moment (for example after the purchase or when the user wants to redeem a reward) sign up to the program and claim back the points. We called this feature Retroclaim to express the concept of retroactive claiming of points previously collected.

My partner and I have worked in the M-commerce and online payments industry for ten years, and believe that the benefits of building a loyalty program based on this second paradigm could be enormous within the mobile and web commerce ecosystem.  Retroclaim makes our kooma·looma loyalty program unique and disrupts the current digital loyalty market. Of course, as for the physical world, Retroclaim improves the mobile or web shopping experience, and provides a stronger incentive for the user to sign-up to the program with important benefits in terms of customer satisfaction and overall adoption.

The implications on the merchant side are even more interesting. Retroclaim in fact enables the merchant to overcome a dilemma in terms of loyalty program adoption. Those who know the “e” and “m” commerce business, will understand that it is critical to maintain a high purchase conversion rate (that is the rate of how many complete a purchase to the amount of people that started a purchase). So on one side the digital merchant wants to provide incentives to buy with loyalty programs, but on the other side anything distracting the user in the purchase or check out flow can limit or even have negative effects. A user could be motivated to make purchase also thanks to the loyalty program, but then abandon the purchase because before completing the purchase the user has to recover some loyalty card number, voucher, or sign in with some password. Anonymous collection enabled by Retroclaim resolves this issue.

kooma·looma and the special Retroclaim feature put together years of experience in online and mobile payments and the best practices in loyalty marketing to enable an incredibly frictionless purchase experience for the merchant and the strongest spending incentives and loyal behavior for the end user.

If you are interested in adopting or learning more about our program please get in touch with us through our page.