Getlokal provides small retailers with the ability to run their own loyalty programmes, helping them to retain their customers and grow their business. Our solution does not require any additional hardware or software and can be set up very quickly and very cost effectively. It is based on a mobile app and uses a QR code as the link between the business and consumer. Businesses set-up a loyalty programme based on collecting points for purchasing certain products and rewarding customers who collect a set number of points. Consumers use the Getlokal app to collect points every time they make a purchase and to claim rewards.

For businesses, a loyalty programme is simple to set-up via the Getlokal web site. They add details of their company and products, then set start and end dates before activating the programme. They promote their programme to customers and encourage them to join. They are able to see the purchasing patterns of customers who belong to and participate in their loyalty programme, and they are also able to communicate with their customers via email and in-app messages. The data associated with their programme allows them to build detailed understanding of customer behaviour and a database (i.e. a basic CRM system) of clients. In the longer-term this is the real value of Getlokal to a small business and will become the value proposition of the company.

Consumers join a programme by downloading the Getlokal app and scanning a QR code which activates a loyalty card in the app and collects a point. At the next purchase they scan the QR code and collect another point. When they have collected a set number of points, predetermined by the business, the app generates a voucher which they show to the business and claim a reward. At any time they may see how many points they have collected and how many more they need to claim a reward.

Consumers are able to join as many loyalty programmes as they like all from the same app. They are able to use Getlokal to find local businesses, both with and without loyalty programmes, and they may rate and review businesses and save their favourite places to the app so that they may easily find them again later.

The app is free for consumers, and businesses pay to use our platform on a subscription basis. Initially businesses are offered a three month free trial after which we will convert them into paying customers. They will pay a monthly subscription of between CLP 15k and CLP 25k based on the level of services they use.

We have recruited a team of local people to represent Getlokal in Chile, recruiting businesses and generating revenues. We plan to expand into other countries in Latam and we will recruit local people to run each local operation.

The current loyalty programme is deliberately simple to use and understand for both businesses and consumers. We are developing a range of higher level programmes and we are working closely with businesses to develop programmes that are attractive to their customers and that help them grow and develop.

Background to Loyalty
Traditionally businesses relied on having superior products or services to drive customer retention. Attrition in small service businesses was generally relatively low providing the service offering was acceptable. As competition increased small businesses increasingly focused on new customer acquisition rather than on taking steps to retain their existing clients. There is now compelling evidence that retained customers are worth significantly more than new customers (they spend more, bring friends to the business and are generally positive about the places where they make regular purchases) and customers cost far less to retain than to acquire.

Large companies have run loyalty programmes to drive customer retention for many years and SMEs now recognise that they need to do the same, but the current choices are limited. They do not want to run a physical paper card based scheme since consumers would prefer a programme based on digital technology and they do not want to carry a wallet full of paper cards. Most small businesses cannot afford to purchase expensive integrated software/hardware that would allow them to operate a PoS based system. Ideally they need a low cost, easy to use system that appeals to consumers and rewards them for their behaviour.

Consumers in general love loyalty schemes. They want to feel rewarded by the places where they spend their money and time and will actively choose businesses with loyalty programmes. The large retailers in Chile run loyalty programmes and around 80% of people belong to at least one scheme, so the concept is understood and liked amongst consumers. However most commercially available schemes are not aimed at small businesses. Getlokal is changing this and is aimed at helping small businesses keep their customers.


Nick SaundersMarta Messechkova