Fetch Rewards Business Model
Jun
The Fetch Rewards Business Model revolves around revolutionizing how people earn and redeem rewards for everyday grocery purchases. Fetch Rewards is a mobile app that allows users to scan their grocery receipts and earn points for every eligible purchase. These points can then be redeemed for a wide range of rewards, including gift cards, merchandise, and even charitable donations.
With over 17 million active users, Fetch Rewards is quickly becoming the go-to app for savvy shoppers looking to maximize their savings. The app is available on both iOS and Android devices, making it accessible to a broad audience. Users simply snap a photo of their receipt after shopping, and Fetch Rewards automatically detects and credits them with the appropriate points.
The Fetch Rewards Business Model is built on creating a seamless and rewarding experience for both users and partnering brands. By leveraging data and consumer insights, Fetch Rewards offers personalized offers and recommendations to users based on their shopping habits and preferences. This enhances the user experience and drives customer loyalty and brand engagement.
Contents
A brief history of Fetch Rewards
The inception of Fetch Rewards can be traced back to a group of entrepreneurs who saw a need for a simplified and rewarding shopping experience. The founders, Wes Schroll, Daniel Litvak, and Tyler Kennedy, recognized consumers’ growing challenge in navigating the overwhelming number of loyalty programs and paper coupons while shopping.
To revolutionize how consumers interact with brands and retailers, Schroll and Kennedy envisioned a mobile app that would streamline the rewards process and make it easier for shoppers to earn and redeem points. In 2013, Fetch Rewards was born.
Fetch Rewards initially started as a platform focused on grocery shopping. It partnered with major brands and retailers to offer users a seamless and convenient way to earn rewards. The app allowed users to scan their receipts after making a purchase, automatically identifying eligible products and crediting them with points.
The early years of Fetch Rewards were marked by rapid growth and expansion. By offering a user-friendly interface and a wide range of partner brands, the app quickly gained popularity among consumers looking for hassle-free rewards. Fetch Rewards’ success was further amplified by its ability to integrate with existing loyalty programs, allowing users to earn points from multiple sources in a single platform.
In 2021, Fetch Rewards expanded its reach beyond grocery shopping by adding new retail categories, such as restaurants. This move broadened its appeal and attracted a more diverse user base.
To enhance user engagement, Fetch Rewards continuously updated its app to introduce additional features and improve the overall shopping experience. These included personalized recommendations based on users’ shopping habits and preferences, and the ability to donate points to charitable organizations.
As Fetch Rewards continued to innovate and expand, it attracted the attention of investors who recognized its potential to disrupt the traditional rewards landscape. The company secured significant funding to enhance its technology further, expand its partnerships, and accelerate its growth.
Today, Fetch Rewards stands as a leading player in the reward industry, with millions of active users and partnerships with thousands of brands and retailers. Its user-friendly app and seamless integration with existing loyalty programs have made it a go-to platform for consumers seeking a hassle-free rewards experience.
Who Owns Fetch Rewards
Fetch Rewards is a privately owned company that is not publicly traded on any stock exchange. The current ownership structure of Fetch Rewards is as follows:
- Wes Schroll: Wes Schroll is the Founder and CEO of Fetch Rewards. As the visionary behind the company, Schroll holds a significant ownership stake;
- Early Investors: During its growth stages, Fetch Rewards has received funding from various venture capital firms and investors. These early investors typically hold a portion of ownership in the company. Some notable early investors in Fetch Rewards include DST Global, Greycroft, and SoftBank Vision Fund;
- Employees: As with many startups, Fetch Rewards may offer stock options or equity in the company to its employees. This allows employees to have a stake in the company’s success and aligns their interests with the overall goals of Fetch Rewards.
Fetch Rewards Mission Statement
Fetch Rewards’ mission statement is “rewarding consumers for what they buy and where they shop.”
How Fetch Rewards works
Fetch Rewards is a mobile app that offers users cashback incentives for purchasing products from their favorite brands. The app provides a simple and convenient way for users to earn rewards while shopping every day.
To start using Fetch Rewards, users must download the app from the App Store or Google Play and create an account. Once registered, they can browse a wide range of partner brands and products for cashback offers.
Users can earn cashback incentives when they purchase at any of Fetch Rewards’ partner retailers, including both online and offline stores. To earn these rewards, users must snap a picture of their receipt using the Fetch Rewards app. This allows for verification of the qualifying purchases of partner brands’ products.
After uploading the receipt, Fetch Rewards’ AI technology scans it and credits the user’s account with the specified amount of cashback rewards. The rewards are usually processed within 24 hours of submitting the receipt.
Fetch Rewards has awarded its users millions of dollars in cash prizes, making it a trusted and popular choice for earning rewards on everyday purchases.
How Fetch Rewards makes money
Brand Partnerships
Fetch Rewards partners with CPG brands to promote and incentivize users to purchase their products. Brands pay Fetch Rewards for featuring their products within the app, as well as for the rewards points that users earn when they buy those products. This provides brands with increased visibility and the opportunity to drive sales.
Retailer Partnerships
In addition to brand partnerships, Fetch Rewards collaborates with retailers to offer users exclusive deals and discounts on specific products. Retailers benefit from increased footfall and sales generated through the app and may provide financial incentives to Fetch Rewards to drive customer traffic to their stores.
Data Insights
Fetch Rewards collects valuable consumer shopping data through its app. This data includes information on purchase behavior, preferences, and trends. The company can leverage this data to provide useful insights to partner brands and retailers about consumer shopping habits, which can help inform marketing and product strategies. Fetch Rewards may charge fees for access to this data or offer data analytics services to its partners.
Partnership Fees
Fetch Rewards might charge brands and retailers partnership fees for including their products and offers in the app. These fees can vary depending on the level of exposure and promotion provided to the partners.
Fetch Rewards Business Model Canvas
The Fetch Rewards Business Model can be explained in the following business model canvas:
Fetch Rewards Customer Segments
Fetch Rewards has a diverse customer segment that includes the following:
- Users: Fetch Rewards users are a vital part of its customer segment. The app has a large user base, consisting of individuals who utilize the platform to earn rewards for everyday purchases. Users sign up for the Fetch Rewards app to scan their receipts and earn points that can be redeemed for gift cards and other rewards. The user base is widespread, with people from various demographics and locations using the app. Fetch Rewards primarily targets individuals who frequently shop for groceries and other consumer goods. Users play a critical role in the success of Fetch Rewards, as their participation drives the platform’s data accumulation;
- Retailers and Brands: Fetch Rewards also caters to retailers and brands, making them a critical customer segment. Retailers can partner with Fetch Rewards to offer exclusive deals and discounts to users. This partnership allows retailers to attract and retain customers through targeted promotions and personalized offers. On the other hand, brands can leverage Fetch Rewards to gain valuable consumer insights and gather data on shopping habits and preferences. This information enables brands to optimize their marketing strategies and better understand consumer behavior;
- Data Partners: Fetch Rewards collaborates with data partners interested in acquiring aggregated and anonymized user data. These partners can analyze the data to gain insights into consumer purchasing patterns, preferences, and trends. The collected data is valuable for market research and business decision-making across different industries.
Fetch Rewards Value Propositions
Fetch Rewards value propositions consist of:
- For Users: Fetch Rewards’ value proposition for its user segment is centered around providing an easy and rewarding way to earn benefits for everyday purchases. They allow users to turn their receipts into points, which can be redeemed for gift cards and other rewards. Users can effortlessly accumulate points and enjoy the benefits of their shopping activities by scanning their receipts through the Fetch Rewards app. Fetch Rewards differentiates itself by allowing users to earn rewards from a wide range of popular retailers, making it appealing to a broad user base;
- For Retailers and Brands: Fetch Rewards offers retailers and brands a unique value proposition that aims to boost customer engagement and loyalty. By partnering with Fetch Rewards, retailers can tap into a large user base and incentivize customers to choose their products over competitors. They can create customized offers and promotions tailored to specific customer segments, driving foot traffic to physical stores and increasing online sales. By connecting with Fetch Rewards, retailers and brands access valuable consumer data and insights, empowering them to refine their marketing strategies and make data-driven decisions to enhance customer satisfaction and overall business performance;
- For Data Partners: Fetch Rewards’ value proposition for data partners lies in providing aggregated and anonymized user data. By partnering with Fetch Rewards, data partners can access comprehensive consumer shopping data, which can be leveraged for market research, trend analysis, and strategic decision-making. The platform’s commitment to privacy and data security ensures that partners can utilize this data ethically and in compliance with regulations, while benefiting from valuable insights into consumer behavior and preferences.
Fetch Rewards Channels
Fetch Rewards channels consist of:
- Mobile App: Fetch Rewards primarily operates through its mobile app, which serves as the core channel for customer engagement and interaction;
- Social Media: Fetch Rewards utilizes various social media platforms, such as Facebook, Instagram, and Twitter/X, to engage with their target market, promote their app, and share customer success stories and promotions;
- Website: Fetch Rewards’ website provides information about their services, features, and offers. It also serves as a platform for new users to sign up and for existing users to access their account details;
- Partnerships: Fetch Rewards partners with various brands, retailers, and e-commerce platforms to expand its reach and offer users more opportunities to earn points. Through these partnerships, Fetch Rewards gains access to a broader customer base.
Fetch Rewards Customer Relationships
Fetch Rewards customer relationships consist of:
- Self-service: Fetch Rewards’ app and website allow users to sign up, scan receipts, track their points, and redeem rewards without the need for direct human assistance;
- Customer Support: Fetch Rewards provides customer support via email and in-app chat to address any inquiries, technical issues, or disputes that users may have, ensuring a positive user experience;
- Personalized Communications: Fetch Rewards communicates with its customers through customized emails and in-app notifications, sharing relevant offers, updates, and rewards information based on users’ shopping preferences and behavior;
- Community Engagement: Fetch Rewards encourages community engagement through user forums, surveys, and feedback mechanisms. These allow users to share their experiences and suggestions, which helps improve the overall customer experience.
Fetch Rewards Revenue Streams
Fetch Rewards’ key revenue streams include the following:
- Brand Partnerships
- Retailer Partnerships
- Data Insights
- Partnership Fees
Fetch Rewards Key Resources
Fetch Rewards key resources consist of:
- Technology Infrastructure: Fetch Rewards’s robust technological infrastructure supports its mobile app, website, and data analytics capabilities. This includes servers, databases, software, and mobile application development resources;
- User Database: Fetch Rewards relies on a substantial user database to attract brand partnerships and advertising opportunities. The data collected from users’ shopping habits and preferences forms a significant resource for the company;
- Partnerships: Fetch Rewards relies on partnerships with various brands, retailers, and e-commerce platforms to expand its customer reach and offer a wide range of rewards and redemption options;
- Team and Talent: Fetch Rewards’ key resource is its skilled professionals, including software developers, data analysts, marketing specialists, and customer support personnel, who are vital in managing and growing the business.
Fetch Rewards Key Activities
Fetch Rewards key activities consist of:
- Mobile app development
- User registration and onboarding
- Retail partnership acquisition
- Data analytics and processing
- Customer support and engagement
Fetch Rewards Key Partners
Fetch Rewards key partners consist of:
- Retailers and grocery chains
- Data providers and aggregators
- Mobile app stores
- Technology and cloud service providers
- Marketing agencies
Fetch Rewards Cost Structure
Fetch Rewards cost structure consists of:
- App development and maintenance costs
- Employee salaries and benefits
- Marketing and advertising expenses
- Data acquisition and storage expenses
- Operational and administrative costs
Fetch Rewards Competitors
Fetch Rewards faces competition from several grocery rewards and loyalty players. Here are some of its main competitors:
- Ibotta: Ibotta is a leading cashback rewards app that allows users to earn money on purchases made in-store or online. Users can unlock offers, purchase featured products, and upload photos of receipts to earn cashback. Ibotta has a wide range of partnered retailers and brands, making it a significant competitor for Fetch Rewards.
- Shopkick: Shopkick is a popular shopping rewards app that allows users to earn points, or “kicks,” by visiting stores, scanning barcodes, and making purchases. The app partners with a variety of retailers and brands, offering users rewards and discounts. Shopkick’s focus on in-store engagement makes it a direct competitor to Fetch Rewards.
- Checkout 51: Checkout 51 is a cashback app that offers weekly deals on groceries and other everyday items. Users simply upload their receipts to earn cashback on qualified purchases. While Checkout 51 primarily focuses on groceries and household items, it competes with Fetch Rewards by providing a similar cashback model.
- Rakuten: Formerly known as Ebates, Rakuten is a popular cashback website and app that offers users cash rewards for online shopping. With a wide range of partnered retailers, Rakuten allows users to earn a percentage of their purchases as cashback. While Rakuten primarily operates online, it competes with Fetch Rewards for consumer attention and engagement.
- Drop: Drop is a loyalty rewards app that allows users to earn points on purchases made with linked credit or debit cards. These points can be redeemed for gift cards from popular retailers. Drop’s focus on providing a seamless way to earn rewards without needing additional steps or scanning receipts puts it in direct competition with Fetch Rewards.
- Fetch Rewards’ Traditional Competitors: Fetch Rewards also competes with traditional loyalty programs grocery retailers offer, such as loyalty cards and reward programs. These programs typically involve earning points or discounts on purchases at specific stores. While traditional programs may lack the same convenience and variety of offers as Fetch Rewards, they still pose a challenge as they have established customer bases and brand loyalty.
Fetch Rewards SWOT Analysis
Below, there is a detailed swot analysis of Fetch Rewards.
Fetch Rewards Strengths
- Strong brand recognition: Fetch Rewards has gained a strong presence in the market and has become a well-known brand in the digital coupon and rewards space;
- User-friendly platform: The app’s straightforward interface and easy-to-use features make it convenient for users to scan and upload receipts and earn rewards effortlessly;
- Extensive partner network: Fetch Rewards has successfully partnered with a wide range of retailers, including grocery stores and popular brands, offering users various options for earning rewards;
- Personalized offers: The app leverages data analytics to provide customized offers and recommendations, enhancing the overall user experience;
- Customer loyalty: Fetch Rewards has developed a loyal customer base through its attractive rewards program and easy redemption process.
Fetch Rewards Weaknesses
- Limited geographic coverage: The app is currently only available to users in the United States, limiting its potential user base and market reach;
- Dependency on retailer partnerships: Fetch Rewards’ success heavily relies on its ability to partner with a diverse range of retailers. Any disruptions in these partnerships could negatively impact the company;
- Potential privacy concerns: As an app that collects and analyzes user data, Fetch Rewards may face challenges addressing privacy concerns and ensuring data security.
Fetch Rewards Opportunities
- Market expansion: Fetch Rewards has the potential to expand its services to international markets, tapping into a more extensive user base and increasing revenue streams;
- Integration with mobile payment platforms: Integrating with popular platforms could enhance the app’s convenience and attract a broader user base;
- Data monetization: Fetch Rewards can explore opportunities to leverage user data and provide valuable insights to partners or advertisers, creating additional revenue streams.
Fetch Rewards Threats
- Intense competition: The digital coupon and rewards space is highly competitive, with well-established players and emerging startups. To stay ahead, Fetch Rewards must continuously innovate and differentiate itself;
- Shifting consumer behavior: Changes in consumer preferences and behavior, such as the increasing popularity of online shopping, could alter the demand and usage of Fetch Rewards’ services;
- Economic downturn: During economic downturns or recessions, consumer spending habits may change, impacting Fetch Rewards’ revenue and growth potential;
- Regulatory challenges: Increased scrutiny and regulations around data privacy and security can pose challenges for the app if not appropriately addressed and complied with.
Conclusion
Fetch Rewards’ business model is a strategic blend of brand partnerships, data monetization, and user engagement. By utilizing a unique approach that rewards users for scanning and purchasing everyday goods, Fetch Rewards has created a win-win situation for both users and brands. This model drives customer loyalty and higher engagement rates, and generates valuable data insights for brands to enhance their marketing strategies.
With its user-friendly app and extensive network of partner brands, Fetch Rewards has positioned itself as a front-runner in the mobile rewards industry, poised for continued growth and success.
