Ian C Jones CEO of LoLo Rewards thinks it can
LoLo stands for Local Loyalty and is the brainchild of an itinerant Australian now living in Kennington. Jones has worked all his life with small and medium sized businesses and thinks he’s found a way for individual shops and services to take on the might of the giant online retailers. It’s based on loyalty discount tokens and is an app that sits on your phone.
This is how it works: Download the LoLo app on to your mobile and you are immediately given twenty loyalty tokens. One token equals one pound. Via the app you now search for a shop or service you are interested in and for the sake of argument find a restaurant that you’d always meant to try. You take your partner out for dinner and at the end of the meal get a bill for £100. On that bill is a QR code. You open your LoLo app, zap the QR code then through the magic of modern technology the telephone talks to the card reader. You decide to use all your twenty tokens, so your bill now comes to £80 with you enjoying a 20% discount. You leave and as you’re walking down the street your phone beeps and you find the restaurant has gifted you £16 new tokens. (As part of the agreement with LoLo the minimum they can give is 5% in tokens however some will accept up to 50%). The restaurant will then likely ask you to write a review of your meal for which they agree to give you another five tokens. So, you started out with 20, spent those and got a 20 % discount and now have a further 21 tokens on your app to spend at the restaurant or with any of the other retailers who are part of LoLo.
Jones adds: “Unlike a frequent flier programme where you’ll use all your points at one go, ours you’ll never run out. Ours only accumulate, you can transfer them to friends and family, but every time you spend them you end up getting back at least 10% more than you consumed. That’s what’s unique about it.”
The App also tells you how many tokens you currently hold and how much cash you’ve saved by supporting local businesses.
When a business signs up with LoLo they are given a whole stack of QR codes that are unique to their business. These are printed on cards for staff to hand out to their customers.
As Jones says: “If I had a coffee shop, I’d be standing at the door handing out the cards to everybody coming in saying download the app.”
He makes the point that if a retailer gives you a discount then that money disappears into the wider world, but with a token that money stays local.
But how do LoLo make money out of this? It’s very simple they harvest 3% of any transaction that goes through a card reader. So, going back to our notional restaurant LoLo receive 3% of the £80 spent by the customer.
Jones also sees the possibility of businesses, perhaps a florist, restaurant and dry cleaner, working together to cross promote their products to increase footfall and ultimately sales.
Jones’ mantra is first shop locally, then regionally, then nationally and if all else fails go to Amazon. He has high ambitions: “We want to make (LoLo) operate on every small business in the UK. Individually no small business can compete with the strength of online, but collectively they can. They’ve got some power so what we’ve done is given them a platform to be stronger.”
Amazon, Deliveroo, Uber Eats; they’re all disrupters and are playing havoc with our high streets. Can a humble app turn the tide on the big boys? Only time will tell, but why not sign up and be part of a revolution, there are tokens waiting for you.
Click here if you want to be part of this.