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UK startup Fygo launches automatic student rewards app

Source: Fygo

Fygo, founded at the start of the COVID-19 pandemic, allows students and staff at Durham University to turn any normal bank card into a loyalty and rewards card using their free mobile app.

Students and staff link any bank card to the app through a secure interface and when they spend using a linked card at Fygo partners they instantly receive cashback. They don’t have to say, show, or scan anything. The cash rewards which are instantly credited to their accounts act as a welcome income supplement.

A variety of business types, both in-store and online, are expected to be available on the app for launch: food & beverage, retail, activities & entertainment, beauty etc. As Fygo can recognise both in-store and online card payments automatically, partner brands can promote omnichannel campaigns. Fygo maps the user journey from viewing a business page through to when they spend in-store or online, allowing partners to see Fygo’s exact impact on sales and revenue.

COVID-19 has adversely impacted students' savings as they have largely been unable to work alongside their studies. Also, Gen Z and Millennials increasingly expect to discover and interact with businesses through mobile apps. User experience increasingly drives Gen Z purchasing decisions, with ‘Recognition & Enjoyment’ and ‘Personal Relevance’ having the largest effect on their loyalty (2019 loyalty report, Centre for retail research). The solution, Fygo, offers students a fun, personalised and rewarding way to discover brands and automatically get more value from their purchases.

“When students know that they’re getting the best value when they spend, they are more confident to make purchases. Fygo’s automatic rewards also provide a lasting sense of gratification, which boosts loyalty. 75% of Gen Z and Millennials are likely to re-visit a business that offers cashback (GCK Gen Z and Millennials as Customers study, 2020)” said Jonah Lowenstein, Co-Founder at Fygo.

With Fygo, student customers always pay full price at checkout or point of sale, maintaining the value of businesses’ brands, products, and services. What’s more, businesses receive the full revenue from purchases as normal, with Fygo covering the immediate rewards to users. Not only do businesses not have to wait for deposits, such as with delivery apps, but they also retain the value that would otherwise be lost if they reduced the price of the purchase with a discount.

“From customers' perspectives, Fygo is paying them back cashback instantly and automatically when they make a purchase at a business” said Toby Lowenstein, Co-Founder at Fygo. “And what’s awesome is that the business is credited for the experience. The same report has shown that 70% of Gen Zs & Millennials increase their average transaction value if they know they’ll receive cashback following the purchase (GCK Gen Z and Millennials as Customers study, 2020)”.

Importantly, Fygo partners can change their offer when it suits them. This allows businesses to increase the number of customers and ATV at their store, website, or digital service whilst staying in charge of profit margins. Fygo then uses machine learning to suggest the right offers, to the right students, at the right time. Personal account managers are available to help businesses strategize their offers and ensure success.

To help organically spread the word about in-store and online businesses, Fygo has allowed each user to earn one point and send a point to a friend after every purchase. Also, to help businesses better communicate with their customers, Fygo partners can send a personalised pop-up message to customers’ phones when they make a purchase. This feature gives brands the power to promote a specific product or service at the moment of sale, inspiring repeat purchases. Retailers using personalised marketing have reported sales uplifts of up to 30 percent in McKinsey’s recent ‘perspective on retail and consumer goods’ publication.

“We’re taking our first step towards making every Gen Z purchase personalised, rewarding, and social. Several hundred students have already pre-registered to download Fygo, with thousands more expected to download the app once it goes public in early April. The beauty of Fygo is that it is effortless to set up and use. Following a successful launch, we intend to grow Fygo to more locations across the U.K” said Ben Champion, Co-Founder at Fygo.

For brands and chains, Fygo’s choice to launch with a limited, verified user group gives them a risk-free opportunity to attract more Gen Z customers and lower customer acquisition costs, whilst increasing loyalty and ATV. What’s more, data-driven marketing teams can better position their products and services for their younger audience using Fygo’s omnichannel customer insights.

“In our post-COVID society, retailers and direct-to-consumer brands need to acquire new customers and retain them at a low, controllable cost. This is the case whether in-store or online. Although Gen Z customers are the highest LTV customers of all time, they are also the most difficult to keep loyal. No other solution for this market engages users and drives them to store as effectively. Our pay per sale model, precise understanding of revenue generated both online and offline, and unique customer insights further highlight us as the go-to Gen Z marketing tool” said Jonah Lowenstein, Co-Founder at Fygo.
Fygo is offering early partners
a range of free perks. Businesses that join before March 25th can claim £200 of complimentary cashback for their customers and a money-back guarantee on Fygo fees if they are not satisfied with their results after one month.

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