Startup Thanx Out to Revolutionize Loyalty Cards
A new startup called Thanx is changing the way loyalty cards work. Consumers use the cards they already have to earn loyalty rewards at their favorite stores, all through a free app on their phones.
Thanx is designed to help small merchants identify, engage and retain their best customers. It also allows customers to take part in loyalty programs without having to use cards, many of which are not utilized. An average of 60% of loyalty cards go inactive within the first year, and 30% of the rewards go unredeemed.
Thanx keeps track of the money these consumers spend at each store, and the stores then issue the rewards accordingly. No integration is required by the merchants so they don’t have to invest in any hardware or expensive engineering work. Thanx has partnerships with both Visa and MasterCard.
Thanx offers a number of perks to the consumer, such as the ability to earn rewards in stores without filling out forms, printing coupons or scanning QR codes. By taking the hassle out of the process, Thanx hopes to build a better loyalty experience for everyone.
“Loyalty programs that require a customer to take action each time they make a transaction or engage with your brand create a lot of consumer friction,” said Thanx founder Zach Goldstein.
Thanx is currently the only system of its kind to work with Apple Pay, a significant competitive advantage.
The company has also secured $4.7 million in funding from Sequoia Capital. With the added boost from Sequoia, Goldstein plans to create even more products to improve the market and expand the company’s engineering and sales department.