After bootstrapping for the past year and a half, PointTunes founder and president Bill Cunningham is gearing up to launch a digital goods distribution platform positioned towards loyalty reward program administrators.
In essence, loyalty reward programs are a marketing tactic designed to identify and cultivate loyal consumer behavior; the most common example generally include some form of ‘membership’ which incentives ongoing purchases by subsidizing or giving away products and services. And more often than not, these rewards offered are tangible big ticket items.
According to a 2011 COLLOQUY report, there are more than 2 billion memberships across all loyalty reward programs, or an average of 18 per household in the US alone. This translates to $48 billion in value of goods and services delivered each year through these programs.