After a big pivot Loyalis wants to bring loyalty programs to lifeBY Zoja Kukic ON April 2
Loyalis is a young Belgrade startup founded by an experienced team and represents a platform for fast and accessible loyalty programs for number of different businesses.
Loyalis was founded by Rade Joksimovic, in our startup community known as a man who managed to build and sell his company for six figures in a year and a half, and Boban Karisik, who worked in Silicon Valley, Great Britain and Emirates.
Last year we wrote about this team in a post about EarnCoupon, startup from first generation of Startup Academy, who was in the finalists of last Mini Seedcamp in Belgrade. While working on it, Rade and Boban estimated that EarnCoupon doesn’t have the perspective they wished for and decided to make a pivot – that is how Loyalis was created.
Although Earn Coupon generated money and had satisfied clients, we tried to look at the big picture and realized that wasn’t the project we wanted to invest 100% of ourselves for the next 4 years. The reason was that the retention rate on that kind of business model was very small – someone uses EarnCoupon for promotion and after couple of months stops using it.
Simply, CLV (customer lifetime value) wasn’t high enough to justify CAC (customer acquisition cost). Therefore, it is very hard to scale such business. We would have constantly be acquiring costumers and after couple of months they would just stop using our service – not a situation you wanna be in for a long run. – Rade Joksimovic, co-founder
A tool for keeping existing customers
Loyalis can be seen as part of EarnCoupon technology packed into broader product – the focus is not anymore just on Word of Mouth promotion, but is based on providing complete loyalty programs for different businesses.
Loyalty programs are aimed to encourage users to stay loyal to the product or brand and should be a part of every company’s marketing. The idea is that the purchases and other forms of expressing loyalty to the product are being rewarded – with discounts, gifts and other benefits, and all that with the goal to increase the sales to the existing customers.
Loyalis is enabling the companies to create their own programme of loyalty based on many options which platform offers – rewarding buyers for visiting, for buying, recommending to friends, subscribing to newsletter, filling the questionnaires, promoting on social networks, etc. And there are also specific services for different product types, like leveling up and achieving various results for games. With Loyalis, companies can even build a specific loyalty program for their employees.
At the beginning the team will focus solely on online businesses – from big internet markets and web services (like Zappos and Ebay), over the desktop softwares (Skype) to mobile applications and games, and then expand their services to the traditional, in other words, offline stores.
Considering that the cost of acquiring a customer is 5-7 times higher than to sell to the existing one, it is clear that it is more profitable to build relationships with the existing buyers. Therefore, Loyalis isn’t the first business that is offering this kind of solution – the competition is big, but the team believes that what they are offering is special.
Gamification and 24-hour-support
Priority for the crew was to make a solution that enables easy integration and provides high flexibility in defining the loyalty program and they are confident that their product is easy to use. Besides that, the users are provided with detail analytical package which is basically a separate CRM that can replace the existing one. There is also gamification throughout the whole program which can not be seen in such amount within other similar products
Loyalis will diferentiate themselves from the competition not only by the product characteristics, but also through 24-hour-service support and Loyalty Manager, who tracks achievements of company’s program and recommends corrections.
Primarily they are planning to get to the clients through inbound marketing and via existing partners.
The majority of our target group doesn’t have loyalty program at all, and the reason is the opinion that these programs are too expensive and too complicated for maintenance. We have decided to change that opinion and show them how simple, efficient and effective running loyalty program through our service can be. – Rade Joksimovic, founder
Launching on OMGcommerce
Loyalis is currently in private beta and building portfolio with carefully chosen clients and are negotiating about initial partnerships. As they plan to be very detail-oriented in this area, launching of the product will be on the 25th of April at OMGcommerce conference.
In this post, Loyalis wants officially to open the call for partnerships in Serbia.
In case our solution seems interesting for your business or your client’s business, be free to contact us directly at [email protected], we’d like to consider options for a collaboration.