Customer loyalty schemes, such as Tesco Club Card, Boots Advantage Card and Nectar, are popular with shoppers and proven to encourage customer retention and increase sales, yet only 20% of offline retailers have a loyalty scheme.
With 280,000 retailers in the UK generating £300 billion in revenue every year, Fidel saw an opportunity to rethink the way shoppers can be rewarded for their custom.
Fidel’s goal was to make loyalty and retention marketing simple for both merchants and consumers, and to enable retailers to increase revenues. The company developed a platform that makes it easier for consumers to receive rewards for their purchases. Instead of having to carry different loyalty cards or coupons for each store, they can use their normal debit or credit cards and rewards are allocated automatically at the point of sale.
Dev added "I’m very excited about the progress we’ve made and where this is heading. The demand has been phenomenal and beyond our expectations. We had so much interest in the platform we were building, before the project had even ended, that we managed to secure further capital from one of the largest venture capital firms in the world, Horizone Ventures."
He said "This additional capital will now help us grow and commercialize the service in UK and internationally."
The platform Fidel created makes it easy for developers to build innovative loyalty applications and services that are linked with payment cards, without having to integrate directly with each payment network (Visa, Mastercard and Amex). Fidel’s mission is to speed up the adoption of ‘card-linked loyalty’ by making the technology more accessible.
Subrata Dev added: "We take care of all the heavy-lifting in the background whilst our partners can focus on building cool products that will ultimately drive transaction volumes and contribute towards the growth of the ecosystem."
Next-generation services is one of the challenges of the Industry Strategy Challenge Fund – part of the government’s Industry Strategy. Part of the challenge asks companies like Fidel to apply for funding to ensure UK service sectors are at the forefront of developing and using innovation.