ChopChop was founded by a team of 3 people. They refer themselves not as 3 musketeers but rather 2 hackers and 1 hustler.
Like some other digital loyalty card companies out there, ChopChop envisions to revolutionalise the digital wallet market as long term strategy. Currently, the system supports digitised loyalty cards and vouchers.
Digital loyalty card has many benefits out of which it allows better management of customer loyalty for both end users and retailers. End users get to collect reward points from their smartphones directly (by scanning QR codes) and it comes with all sort of functions such as reminder functions for points expiry and unredeemed rewards.
For retailers, with a budget of only RM 200 per month per outlet, they get to enjoy computerisation of loyalty system by having full control, real time monitoring, customer relationship management, ad-hoc loyalty policy changes and analytics.
Up to date, it has signed up with about 40 + retailers in Klang valley. These retailers are mostly F & B and Cafes.
For retailers who signed up, they are also entitled for marketing services which include facebook marketing.
The smartphone app is available for Apple iOS, Android and Blackberry platforms - it is free for end users. It is very simple to use, just follow these steps as explained in this link.
"We are in the game of customer loyalty and retention vs customer acquisition" says Aaron Hee co-founder of ChopChop. Aaron feels that the trend now is on group-buying and customer loyalty. Retailers must know its customer well in order to create returning customers because based on statistic, regular customers form the majority of profit. And according to the Gartner Group, 80% of your future profit is driven by 20% of existing customers.
In other words, customer loyalty and retention is an equally important element if not more than customer acquisition and both should be carried out at the same time. According to Aaron, implementing customer loyalty system is a must for businesses especially in the retail industry.
Aaron was inspired by Reid Hoffman (co-founder of LinkedIn) in journey of becoming an entrepreneur. Hoffman once said that to change the world, wealth isn't necessary, what is important is the the will to succeed and passion.
Being the hustler in the team, he once considered outsource the technical part of the system even it was against his principle. Eventually, he met the two software engineers during one WebCamp session and they hit it well. Soon afterwards, ChopChop was launched on part time effort until mid-April which they went full time.
"We had more than 2,000 users in a month right after we quit, validating the need for our product." says Aaron.
ChopChop was an effort of bootstrapping all the way and it was self funded initially and finally merchant-funded.
To date, they are planning to have footprints in Singapore and Indonesia, thanks to growing interests from those places.
Personally, I feel that digital loyalty system is must too, coupled with the fact that the trend is now on SaaS and smartphones. The Apple vs Samsung court case alone is US$1 billion in damages for patent infringement, not including anything else.
Social media trend is an equal defining force in the industry, especially on retail, A & P industry.
But competition remains high especially in the Klang Valley region. To level the game well, SaaS providers must learn the art of integrating well with other systems as well as create synergies with collaborators and channels.
The survivability of a system is always a balance between users and maintainability, failing either one will not bring about equilibrium.