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FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

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Re: FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

#11
post #5

Haven't we seen enough of these? I'm thinking punchd, Belly, LevelUp, Plink, not to mention offerings from Groupon, foursquare... They may be able to profitably acquire businesses now, but isn't it a coinflip as to who will win in the long-term?

"but isn't it a coinflip as to who will win in the long-term?"

One of the more ill-informed questions I've heard in awhile. Do you have any idea how much energy, persistence and brains go in to creating a successful, winning service?

Re: FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

#12
post #11
post #5

Haven't we seen enough of these? I'm thinking punchd, Belly, LevelUp, Plink, not to mention offerings from Groupon, foursquare... They may be able to profitably acquire businesses now, but isn't it a coinflip as to who will win in the long-term?

"but isn't it a coinflip as to who will win in the long-term?" One of the more ill-informed questions I've heard in awhile. Do you have any idea how much energy, persistence and brains go in to creating a successful, winning service?

I'm guessing he does, which is why he's wondering exactly how there came to be a half dozen players in this incredibly tiny market niche.

Re: FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

#13
post #5

Haven't we seen enough of these? I'm thinking punchd, Belly, LevelUp, Plink, not to mention offerings from Groupon, foursquare... They may be able to profitably acquire businesses now, but isn't it a coinflip as to who will win in the long-term?

This looks a lot different to the others out there.

Most of the startups you mentioned are trying to retrofit the loyalty card paradigm to smartphones. I'm not sure that's the right approach - time will tell.

It looks like FiveStar simply works with a business' existing POS / magnetic scanner - and is enhanced by social / mobile. I think that's a smarter, more frictionless approach.

The winner in this space will be the one that's easiest for a business to integrate. Both on a technical level via integrating with POS systems but on a human interaction level: if you're Starbucks you can't tell 17,000 stores that they have to faff with iPhones every time a customer wants to stamp their card.

Re: FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

#16
post #12
post #11

Earlier quoted context omitted.

"but isn't it a coinflip as to who will win in the long-term?" One of the more ill-informed questions I've heard in awhile. Do you have any idea how much energy, persistence and brains go in to creating a successful, winning service?

I'm guessing he does, which is why he's wondering exactly how there came to be a half dozen players in this incredibly tiny market niche.

I think it's one of those sexy tech ideas everyone thinks they brilliantly discovered first.

Re: FiveStars (YC W11) Picks Up $14 Million to Challenge the Loyalty Punch Card

#17
post #12
post #11

Earlier quoted context omitted.

"but isn't it a coinflip as to who will win in the long-term?" One of the more ill-informed questions I've heard in awhile. Do you have any idea how much energy, persistence and brains go in to creating a successful, winning service?

I'm guessing he does, which is why he's wondering exactly how there came to be a half dozen players in this incredibly tiny market niche.

you think customer loyalty is a niche? it applies to every business on the planet. it's one of the largest markets you could attack.
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