Vilnius-based Boomio has just bagged €550k to level up the customer loyalty market , bringing it into the digital age in a cost-effective and time-efficient way. The startup is now planning wider European growth.
Costs associated with acquiring and servicing customers have increased dramatically since the boom of social media advertising following the pandemic. The reason for this is because of new regulations related to digital privacy and exposure in the market. It’s reported that costs doubled and efficiency declined since this time due to these changes.
The current lack of client retention methods comes at a cost. Commencing and continuing to use existing solutions is difficult, time consuming and expensive.
Boomio is an all-digital loyalty program designed to fill the gap in the market.
Boomio announced a follow-up investment round worth €550K today.
The current round of investment was led by Lighthouse Ventures and a syndicate of 4 European angel investors. Last year, Boomio received an investment of €215K from 2 LitBAN investors and 2 VC funds – 70V and Startup Wise Guys.
Transforming Customer Loyalty
Boomio hopes to provide digital customer loyalty tools to small and medium sized businesses. These tools can be expensive for businesses to develop on their own, so Boomio wants to make them accessible for them. Their website and mobile app provide the ability for businesses to create and manage their own rewards and loyalty system.
As cost of living crises sweep across Europe and recessionary economics return, saving money is a top concern. Spending too much time managing multiple paper coupons and plastic cards in loyalty programs is difficult. Creating in-house apps for this purpose is too expensive for most businesses.
Boomio takes months or weeks to set up a loyalty system using different saving methods. They can be implemented on a website or app through one easy method instead.
Jonas Davalga, CEO and co-founder of Boomio, said, “Small to medium sized businesses can use our tools to discover their most loyal customers. These customers generate up to 80% of their total revenue and help these businesses grow 2.5 times faster than their competitors.”
The growing team grew their revenue three times in the last year alone thanks to the new capital injection. They plan to use the money to improve their product and launch in the German market.
Robert Reich, an investment manager at Lighthouse Ventures, said, “The Boomio team’s project has incredible potential. We believe they can add a lot of value to the many small and medium-sized businesses out there.”