PayRange Introduces Mobile-Based Rewards and Loyalty Platform

PORTLAND, OR -- PayRange Inc. shipped on Oct. 9 its mobile-based rewards and loyalty platform for automated retailers. The loyalty program will enable vending operators to reward frequent customers and increase sales through additional purchases. It also provides a novel selling tool to win new accounts.

"With the PayRange app, we offer convenience through mobile payment, engagement through offers and now loyalty through our rewards program," said PayRange founder and chief executive Paresh Patel.

PayRange tailored the program for vending by designing such features as rewarding the frequent user; enabling users to track rewards in real-time through the app; encouraging incremental purchases through trials of different products with free rewards; and aligning earning of rewards and spending of rewards with the same operator.

The program also offers automatic redemption to minimize overhead for the operator and inconvenience for the user, and allows the user to choose when the free reward can be applied instead of forcing use on the next transaction. The user can accrue points on a machine-by-machine basis, allowing redemption on any of the operator's machines.

Operators activate rewards program on a per machine basis. Users are awarded "Stars" for each mobile purchase and can track status right in the app. Stars are specific to each machine.

When seven mobile purchases have been made, a free vend offer up to $2 is added to the user's account. The user can apply it immediately, or save it for later (up to 60 days). Free vend rewards can be redeemed on any of the operator's machines, encouraging trial of different products.

Because Stars expire, seven mobile purchases per machine must be made within a rolling 60-day period. When operators activate the rewards program on a machine, users will automatically earn Stars for mobile purchases made within the 60-day period.

The operator can discontinue the program on any machine at any time, according to Patel. Any user who has earned a Star can continue earning and redeeming rewards for up to 60-days. New users will not see the rewards program on that machine.

For example, a user makes 2.5 purchases per week on average from a particular machine over a year. After the rewards program, he increases purchases to an average of three a week. He will spend $39 more a year and earn free vends worth $16.50, resulting in a net increase in sales of $22.50 or 11.5% from that user (assuming the average vend is $1.50, and free vend cost is 75¢). The operator earns more while rewarding the user and creating goodwill.

In another scenario described by PayRange, a customer buys a bottle of water every day at work and uses the free vends she earns to try different items out of the food machine. One item she tries and likes is a yogurt parfait, which she now buys every now and then for breakfast. As a result, the operator has increased sales and not taken away from her water purchases.

The PayRange mobile app, available for both iOS and Android devices, allows consumers to purchase products from unattended retail sites securely, entirely on the mobile device with Bluetooth technology. The new loyalty program is free to vending operators who use PayRange.