More and more, local retailers are understanding the importance of finding a loyalty program that works for them. Klosebuy, a Fort Lauderdale-based loyalty solution vendor, has recently discovered the difference that its product can make for small businesses.
Earlier this month, Klosebuy began to work with HernandoLoser Nutrition, a Brooksville, FL, health food store that was looking to acquire new customers and make sure that its current ones would be coming back.
Klosebuy worked with the retailer on signage it displayed near its counter. The signage prompted customers to download the Klosebuy app and “follow” the nutrition store. Downloading the app allows customers to unlock promo codes and start earning points to exchange in the app later for rewards that may drive them back in-store.
It’s not a new concept—but what separates Klosebuy from its competitors is the fact that it’s also an advertising platform, said president and co-founder Frank Fennell.
“From the app itself, if I like an advertisement, I can share it, and it goes to my Facebook feed,” he said. Sharing an offer gives the customer more points. But for the business owner, the benefit is greater: it’s a low-cost way of organic advertising that gets a different play on Facebook than sponsored content.
“That has more credibility than the ads that pop up blindly, which people are paying a fortune for today,” Fennell said.
“It’s designed to be affordable for small businesses, but it’s a tool that every large business needs if they’re looking to localize their offers,” Fennell added.
The sharing effect has generated prime results for HernandoLoser Nutrition, Fennell said. After a little over a week using Klosebuy, the fitness store has a following 25% larger than its base of regular customers.
For Fennell, that’s a win.
“It’s all about taking someone that may know the business and turning them into a regular,” Fennell said.
Fennell founded Klosebuy three years ago, and the beta product launched just six months ago. The company won first place at this year’s Southeast Acquirers Association’s Innovation Battle in March.
Already, the company is working on strategic partnerships to expand the reach of its app.
In July, Klosebuy launched a partnership with Clearent, a payments solution provider that works with more than 40,000 merchants. Klosebuy will provide Clearent’s merchants with engagement tools and allow them to track customer spending behavior.
For credit card processors, which face high attrition rates, offering Klosebuy alongside their typical services can incentivize clients to stay with their company.
“They want to reduce attrition by providing a value-added benefit to businesses,” Fennell said.
Klosebuy still offers its services to individual merchants, as well as larger businesses. Their clients pay a “subscription fee” to Klosebuy, which provides them with a number of points to dole out to their customers.
Fennell said that the product has worked across multiple local industries that are all aiming at increasing customer loyalty, from restaurants to salons.
“We’ve given them the power and control to grow their own business without costing them a fortune,” Fennell said.
Kate Talerico is a staff writer at Street Fight.