Belly, backed by Groupon investor Lightbank, is the latest startup in the loyalty rewards space. Chicago-based Belly places an iPad in merchants' stores to register customers' visits. The system is designed so that it can be set up in a merchants' store in minutes. Customers use the iPad to scan a bar code either on a physical loyalty card or on the Belly mobile app. Customers will see a notice immediately on the merchant's iPad when they scan their card if they have received a reward. The Belly card, physical or app-based, can be used by consumers at any business that is using Belly.
The company is focusing rewards and offers customized for each small business that uses Belly. "We're creating a custom and unique loyalty program," says Belly co-founder LoganLaHive. "We're spending time with each business owner to understand their brand and business objectives to create rewards specific and customized to that location."
While some startups are focusing on ditching the physical card in favor of a digital app, many people don't have or don't want to use a smart phone to check-in, so Belly provided both card and app options, says Belly cofounder Ryan Jeffery, who was previously a venture investor at Lightbank.
Launched in August, Belly wants to replace the traditional punch card loyalty card, but Belly gives a wide range of rewards, some of which are wacky and not necessarily monetary. For example, a sandwich store will name a sandwich after you, or at AlleyCat Comics you can punch the owner in the stomach as a reward, or at Devil Dawgs you can get all you can eat for 10 minutes in the store.
Merchants pay a monthly subscription fee to Belly, which also provides data and analytics to merchants so they can see who their most loyal customers are.
This is a busy space, with startups such as Swipely, Womply (story) , Offermatic, and YC-backed Five Stars Card. Bigger players like Google and PayPal are also looking at loyalty services as well.
