The customer loyalty/rewards market, whilst massive, is also massively fragmented. With consumers demanding customer-loyalty programs and small businesses recognising the importance of offering such programs, but not really knowing how to offer them, a huge opportunity exists. Consider the following:
- The global Loyalty Management industry is valued at $365 billion.
- Six Trillion loyalty points are issued to consumers every year.
- 59% of UK adults think all brands should offer a loyalty program.
- 77% of UK adults are subscribed to at least two programs.
- Circa 1 million local traders are looking to improve digitally and connect more with customers.
Loyalty programs are traditionally limited to one, or a small number of brands, meaning consumers are limited in how they redeem their rewards. Currently no company offers a unique, localised loyalty and reward solution, that provides instant token rewards to enable customers to earn, collect, share and exchange tokens between each other and trade for goods and services at any participating business. A unified loyalty ecosystem and token based loyalty program would no longer force customers to spend their loyalty points with a specific brand.
Blockchain technology has now opened this opportunity up and Go Local has identified the pathway to disrupt this multi-billion-dollar industry and at the same time, help rejuvenate our High Streets by encouraging consumers to Eat, Shop & Buy Local more often.
Based in Manchester’s Media City, Go Local has developed a mobile application that doing exactly this, by connecting consumers with local businesses - shops, restaurants and bars. The app brings together deals, vouchers and local events in a single directory, allowing users to find out what’s on and what offers are available in their area.
For businesses, Go Local provides a smart marketplace app and offers small business owners the ability to build and launch a smart, branded profile on the Go Local marketplace in less than 5 minutes. The app is designed exclusively for independent traders to showcase their business in the best possible way, enabling them to connect, engage and transact with their customers in a more meaningful way.
As Go Local’s localised app is based on the “near me concepts”, for consumers, it is providing a quick and easy way for local people to find great local businesses around them, connect and engage with their favourite local brands, whilst at the same time earn and collect rewards for their loyalty, that they can redeem with any business in the Go Local eco-system.
Successfully launched and trialed in pilot locations (Isle of Wight and Manchester), in a very short space of time, Go Local has on-boarded over 4,000 local businesses, achieved over 3,800 app installs in targeted locations, and attracted 15,000 campaign and social media followers.
Management is now seeking growth capital to scale the business. Previously, Go Local raised £350k at a £1.75m valuation, with management now raising a further £250k at a pre-money valuation of £2.5m. £100k of the fundraise target has been either pledged or committed from external sources, leaving £150k availale for investors participating in this round with Shadow Foundr.
With the funds raised, management is confident that Go Local can deliver its tech roadmap and key milestones, to disrupt and become the major layer in the multi-billion-dollar customer loyalty sector. The company is aiming to provide investors in this round, an expected and conservative return on their investment of between 5-10x within 3 years.