Well… we talked about our startup tools and first activities, in our third post its time to spend two words on what kooma•looma is all about. But before we get into this, we would like to share some data:
- Loyalty programs deliver 3 times higher customer satisfaction
- Customers are 8 times more likely to purchase again with retailers offering a loyalty program
- Retailers with loyalty programs are 88% more profitable than those without
We see that many companies in the digital world often more give priority to their customer acquisition efforts compared to effective activities directed in retaining their customers. Most customer retention services are based on direct communication such as emails and newsletters, often with dedicated promotions and discounts.
Our goal is to cover the gap in the market by providing a Loyalty management platform as-a-service, designed specifically for online and mobile companies. Our partners will use this platform to offer bonus points that can be spent to redeem prizes to their web and mobile users.
One of the key decisions we made is to provide this service as an “open coalition”. This means that all our partners subscribe to the same program… the kooma•looma and this means that their users accumulate and spend all the same bonus points, the kooma•points. We think open coalitions have a stronger value proposition, since users can achieve greater and more meaningful rewards. Also, the increased number of partners can introduce more points into the system with a higher share of spending and value for everyone
More details on our business idea and on this fascinating market in the next days.