I had the great pleasure of meeting with Dan Morphew, the Regional Director of Midwest Operations for SpotOn Inc, last week about the company’s software platform that is revolutionizing and modernizing loyalty programs.

Serving the same purpose as a punch card in rewarding loyal customers, SpotOn goes way beyond the traditional paper punch card by allowing merchants to build an information database that includes the buying behavior of their customers. Armed with customer intelligence, merchants can quickly and easily create Groupon-like special promotions targeted at particular customers such as those who have not been in the store for a while or at new customers to develop those relationships.

Spoton allows merchants to use the platform for free for the first 30 days to give them an opportunity to introduce the program to their customers and to become acquainted with the platform. After that the merchant subscribes to the platform for a very affordable monthly rate. Under no contract obligation, SpotOn can be cancelled at any time.

After learning about the company and testing out the SpotOn software, I was impressed. The product is very smart and has incredible marketing and promotion potential and the start-up company has really thought through and executed all aspects of their own marketing flawlessly.

Watch the short SpotOn video:

Read more about SpotOn in the press:

SpotOn Launches Digital Loyalty Network for Local Merchants and Consumers

SAN RAFAEL, Calif., Aug. 17, 2012 — SpotOn (www.spoton.com) today announced the launch of its new digital loyalty network for local merchants and consumers. SpotOn installs tablets in places like cafes and salons so consumers can easily check-in using a smartphone or card to earn rewards and incentives. SpotOn’s founders, who have deep experience building and selling services to help small businesses, have provided an initial$5 million in funding.

Since starting its tablet-based program in April of this year, SpotOn has attracted over 1,500 merchants and is currently signing-up more than 500 new businesses a month.

“Local businesses are waking up to the fact that deepening their relationships with existing customers is more cost-effective than recruiting new ones through group buying deals, ads or paper coupons,” said Zach Hyman, co-CEO of SpotOn. “Yet many business owners don’t have the time or know-how when it comes to connecting with their customers using social, mobile and email marketing.  Our tablet-based approach provides at-a-glance customer profiles making it really easy to run targeted campaigns.”

About SpotOn, Inc

One Card. Endless Perks.

SpotOn is a consumer-facing loyalty platform and a merchant-facing marketing machine. For consumers, SpotOn eliminates the need to carry multiple punch cards with a seamless digital check-in to access rewards and perks. Using SpotOn’s tablet-based dashboard, merchants now have an entirely new and simple way to connect with their customers using social, mobile and email marketing. With one click, merchants can learn more about their customers by viewing typical spend and campaign redemption activity.

Website: http://www.spoton.com

Industry: Computer Software

Type: Privately Held

Company Size: 51-200 employees

Founded: 2010