Customer loyalty is Big Business. So big in fact, the market is worth an estimated $60 billion a year. But whether it’s American Airlines miles, Hilton Honors points or Starbucks Rewards, it seems only huge corporations can easily take advantage of implementing these programs with their big budgets and broad reach, while the millions of smaller locally-owned merchants are missing out.
That’s why Menlo is excited to lead the $26M Series B round in FiveStars, which provides local merchants the technology to implement and run great rewards and marketing automation programs with little overhead in dollars and time spent, enabling them to not only reach new customers, but retain them long-term. Considering the cost of acquiring a new customer is much higher than the cost of retaining one, FiveStars is truly changing the landscape for small business.
FiveStars’ mission to turn transactions into relationships is working, with 4 million customers redeeming rewards at more than 5,000 local merchants across the U.S. and Canada on the platform. With the business tripling in the last year alone, FiveStars is creating real possibilities for small business infrastructure to overcome the hurdles of competing with larger corporations.
Menlo is extremely excited to work with CEO Victor Ho and the management team at FiveStars, who are dedicated to helping customers connect with the businesses they love, and ensuring those businesses thrive.