Rewardle (the loyalty program / app) just got listed on ASX. Any experience?

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rewardle.com

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  Unorthodox on 09/10/2014 - 21:05

  Never heard of it and can't recall any local businesses utilising it…

  Not many traded considering the initial offering

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  easternculture on 09/10/2014 - 21:14

  public offering was in August 22nd

  http://www.smh.com.au/business/digital-coffee-card-company-r…

  Thinking of buying 1000 shares for ~ $250

  • 

    Unorthodox on 09/10/2014 - 21:33

    +1

    It only has 64 subscribers…(at that time).

    And they charge quite a lot per month for something simple…

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  neil on 09/10/2014 - 21:28

  +1

  I installed the app a while ago and again a couple of weeks ago. There is no information in the app or the website of what businesses use it. Why would I sign up to a rewards program if I don't know who is in it.

  So I've uninstalled it awaiting some improvements.

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  Eivad on 09/10/2014 - 23:56

  +2

  There are actually 40 million ordinary shares quoted on the ASX (with another ~100 million of restricted shares). The current market cap based on ordinary shares is just over $10 million (40 million * $0.26).

  The founder, Ruwan Weerasooriya, currently holds 64.22% of ordinary shares in the company, which is expected to increase to 71.56% (fully diluted). A copy of their prospectus can be found here.

  It's interesting how many small unknown companies can list. My eye specialists (Vision Eye Institute) is also listed (ASX:VEI) - might explain why they're so expensive!

  • 

    scotty on 10/10/2014 - 09:33

    Thanks for checking out the prospectus — I know I couldn't understand all that financial jargons :)

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  Davo1111 on 10/10/2014 - 08:49

  Seems pointless to me. The only incentive for the company to take this up is that they can get analytics of the people entering the shop. The set up cost needs to be absorbed by the customers, on top of the rewards given.

  They're competing with the cards which could be sourced with a couple of stamps from vistaprint for less than $100 and doesn't require a smart phone to use.

  I'm out.

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  Davo1111 on 10/10/2014 - 08:52

  Revenue has risen dramatically in the past year, increasing from close to $9985 during the 2013 financial year to $28,766 in the nine months to March 31, 2014. The business is yet to turn a profit.

  So it's raised less than the minimum wage in 2 years?

  If this was dragons den, they would have laughed them out of the room.

  How is this guy paying for a company secretary, accountant, legal etc?

  • 

    neil on 10/10/2014 - 10:32

    +1

    Well I guess revenue is increasing but that's not much to sustain a business, however…

    1500 Merchants and around 300,000 Members

    It also seems that they aren't charging any businesses yet to ensure they rapidly build market penetration. They plan to also offer mobile payment (like Paypal) and marketing services (like Mailchimp, etc.) which looks like $50/month.

    In time the Company envisages converting Merchants from free trials to paying subscribers.

    So the valuation would be on their confidence of converting their currently free trial customers to a paid model.

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  djones145 on 10/10/2014 - 09:32

  I've seen it in a few coffee stores in the city (Sydney)

  hasn't really hit off
  I like using the paypal app cause it has the same feature, can use cc to pay for coffee (amex) and in some place, order one before u get there

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  polol on 10/10/2014 - 10:57

  Used it briefly with the QR code card - I took a photo of it and scanned it at the coffee shop. It worked well enough and it gets me a free coffee once a fortnight.

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  dasher86 on 10/10/2014 - 12:33

  It's pretty decent, there are a few coffee shops around Melbourne with it.
  It helps not having to have many royalty cards with the one coffee shop.
  My GF and i account share.

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  adamren on 10/10/2014 - 12:49

  Have seen it at a cafe in Rosalie, Qld. And a book store (where I signed up to get a 10% discount) in WA (Leederville). Will be interesting to see what they spend the money on.

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  Baghern on 10/10/2014 - 16:43

  My coffee shop got a it a few weeks ago, I decided to give it ago, and registered the card on my mobile. Previously I didn't do the stamp thing as it was another card in my wallet and a time wasting process.

  Initially it looked really good and i can imagine how it would of been sold.

  But having used it a few times now, the process is not that fast for your average customer. The server is constantly showing people how to hold their card/mobile. The machine was not working today, and there were no new cards available… I suspect the machine will disappear soon.

  It needs to be like opal, where you just wave your card over it.

  Based on this localised experience. I don't see Rewardle doing well long term

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    djones145 on 11/10/2014 - 08:07

    yeah its the not easiest thing to use

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  adamren on 10/10/2014 - 20:11

  It is supposed to increase sales and reduce cost of sales by increasing frequency of purchase. Customer loyalty etc.

  Rewardle obviously gets a fee/cut etc from it, so once more businesses sign up and customers use it they'll start to turn a greater profit. There is probably some good data in it too, selling the analytics back to stores or third parties.

  AFAIK there aren't any other good Android app featured loyalty schemes in Australia. Hopefully this will replace the need to carrying various cards, from Priceline's SisterClub to Nando's Peri card thingo. Dome and Subway too.

  Who knows?

  It'll only be barcode scanned and not chip/RFID/NFC type cards. Barcode cards can be under $0.15 in bulk but chipped cards would be from $0.50 to $1.25 or so. They don't require two way comms for security etc and store of cash value.