Farewell, coffee cards: Madrona bankrolls mobile loyalty rewards startup RewardLoop

Madrona Venture Group is heading north for its latest investment, leading a $1 million funding round in Vancouver, B.C.-based RewardLoop. This marks the second investment by Madrona in Vancouver in recent months, following its backing of online fashion startup Indochino.

The RewardLoop system could replace the paper-based stamp cards that you often see at coffee shops, pet stores, car washes and other retailers. Consumers who download the RewardLoop app collect “virtual stamps” on a “virtual stamp card” at participating retailers, and then can cash those in for rewards.

For example, say a free coffee after collecting 10 free “virtual stamps.”

“RewardLoop has developed a simple, cost-effective way for local merchants to take advantage of enterprise-grade CRM and mobile loyalty solutions,” Madrona’s Scott Jacobson tells TechVibes. “The level of insight and detailed analytics the product delivers was previously available only to merchants willing to rip-and-replace existing POS systems or invest in expensive, one-off integrations.”

Here’s a demo of how the product works:

  • http://twitter.com/cindybetty Cindy Engstrom

    Hooray for my hometown.  Nice to hear the old accent.  I like this idea but still an awful lot of paper needed.  Be interesting to see where they take this. As a former retailer i can sure appreciate the lack of POS integration to deploy this. 

  • http://twitter.com/jclaussftw Jason Gerard Clauss

    LOL… what the heck is with that chick’s glasses? Didn’t those go out of style 30 years ago?

  • Cgptmsi

    too complicated and customers will not do it. There are so many programs in the market now, the last thing that is needed is another loyalty program. I feel for the investor.. It is like the dot com days in the early nineties when investors dumped their money into any company that had a website. Now they are doing this with mobile….