How to Build an App with Major Brand Partnerships

TL;DR

Fetch Rewards co-founders Wes Schroll and Tyler Kennedy grew their startup by winning business plan contests and partnering with major brands like Kraft and Dove. They emphasize starting without a perfect plan and iterating based on customer feedback. The app rewards users for purchasing specific brands, turning customers into brand advocates and generating revenue from increased brand loyalty.

Transcript

welcome to the bigger pockets business podcast show number 32 welcome to a real world MBA from the school of hard knocks where entrepreneurs reveal what it really takes to make it whether you're already in business or you're on your way there this show is for you this is bigger pockets business hey there everybody it is Jay Scott here I am your co-... Read More

Key Insights

• Fetch Rewards began by winning six business plan competitions, securing $150,000 in prizes and office space.
• The app rewards users for purchasing specific brands, driving brand loyalty and generating revenue through increased sales.
• Fetch Rewards processes nearly a million receipts daily, with over 1.6 million monthly active users.
• The founders emphasize starting without a perfect plan, iterating based on feedback, and solving problems creatively.
• The company employs over 120 people across multiple offices, focusing heavily on customer support and experience.
• Fetch Rewards leverages brand partnerships to market the app, with over 50% of users acquired through referrals.
• The company has raised nearly $50 million in funding, growing revenue from $2 million in 2017 to over $20 million in 2019.
• Fetch Rewards values a customer-first culture, encouraging employee empowerment and problem-solving.

Questions & Answers

Q: How did Fetch Rewards start and secure initial funding?

Fetch Rewards began by winning six business plan competitions, securing $150,000 in prizes and office space. This initial success allowed the founders to develop their app and attract early investors. They focused on building credibility and solving practical problems before seeking larger investments.

Q: How does Fetch Rewards generate revenue?

Fetch Rewards generates revenue by partnering with brands that pay for increased sales and customer loyalty. The app rewards users for purchasing specific products, encouraging brand loyalty and driving sales. Brands benefit from targeted promotions, while Fetch earns a share of the increased sales.

Q: What is Fetch Rewards' approach to customer acquisition?

Fetch Rewards focuses on customer referrals and brand partnerships for user acquisition. Over 50% of their users come from referrals, highlighting the app's appeal and effectiveness. Strategic partnerships with major brands also help promote the app and attract new users.

Q: How does Fetch Rewards ensure a positive user experience?

Fetch Rewards prioritizes a customer-first approach, employing a large team focused on customer support and app improvement. They continuously iterate based on user feedback and solve problems creatively to enhance the user experience, ensuring the app remains easy and enjoyable to use.

Q: What role does company culture play at Fetch Rewards?

Company culture at Fetch Rewards emphasizes customer-first values, employee empowerment, and problem-solving. The founders foster a supportive environment where ideas are challenged, not people, and encourage employees to take initiative and make decisions that benefit users and the company.

Q: How has Fetch Rewards grown in terms of revenue and user base?

Fetch Rewards has experienced significant growth, with revenue increasing from $2 million in 2017 to over $20 million in 2019. The app processes nearly a million receipts daily and has over 1.6 million monthly active users, driven by effective marketing and strategic brand partnerships.

Q: What challenges did Fetch Rewards face in its early stages?

In its early stages, Fetch Rewards faced challenges in building credibility and finding the right technology solution. The founders overcame these by securing initial funding through competitions, partnering with smaller retailers, and iterating on their app to improve user experience and functionality.

Q: What advice do the founders of Fetch Rewards offer to entrepreneurs?

The founders advise entrepreneurs to start without a perfect plan, focus on solving problems creatively, and iterate based on feedback. They emphasize the importance of building credibility, leveraging partnerships, and maintaining a customer-first approach to drive growth and success.

Summary & Key Takeaways

• Fetch Rewards co-founders Wes Schroll and Tyler Kennedy started their company by winning multiple business plan competitions, which provided initial funding and credibility. They pivoted from their original concept to a receipt-scanning app that rewards users for buying specific brands, fostering brand loyalty.

• The app grew rapidly, processing nearly a million receipts daily and acquiring users through both referrals and brand partnerships. Fetch Rewards emphasizes a customer-first culture, employing over 120 people focused on enhancing user experience and supporting clients.

• The company has raised significant funding, with revenues growing from $2 million in 2017 to over $20 million in 2019. Their success is attributed to starting without a perfect plan, iterating based on feedback, and maintaining a focus on solving customer problems creatively.