- Fetch Rewards is an online shopping platform enabling users to earn rewards in exchange for scanning their receipts. Co-founder Wes Schroll got the idea for the company after imagining a world where companies would be required to demonstrate their loyalty to consumers.
- The Fetch Rewards business model is certainly nothing new, but it has made the process of earning rewards more simple. What’s more, users can earn points from virtually any store or gas station.
- Fetch Rewards makes the bulk of its money through affiliate commissions collected from partnering brands. The company also collects interchange fees after launching a branded Mastercard debit card in late 2020.
|Data Collection and Insights||Fetch Rewards collects valuable purchase data from users when they scan their receipts. This data includes information about the products, brands, and retailers that users are purchasing from. Fetch Rewards anonymizes and aggregates this data to create insights and trends that are highly valuable to consumer packaged goods (CPG) brands and retailers. Fetch Rewards can then sell these insights and data to these brands, helping them make informed marketing and product development decisions.|
|Sponsored Offers and Promotions||Fetch Rewards partners with CPG brands and retailers to offer users sponsored offers and promotions within the app. These brands pay Fetch Rewards to promote their products or offers to users. When users redeem these offers by purchasing the promoted products, Fetch Rewards earns a fee from the brand or retailer. This creates a win-win scenario where users save money on products, and Fetch Rewards generates revenue.|
|In-App Advertising||Fetch Rewards may feature in-app advertising from third-party businesses and brands. These advertisements can include banner ads, video ads, or interactive ads displayed within the app. Advertisers pay Fetch Rewards for ad placements to reach its user base. Revenue is generated from these advertising partnerships, contributing to Fetch Rewards’ income.|
|Market Research and Surveys||Fetch Rewards may offer users opportunities to participate in market research surveys and studies. CPG brands and market research firms pay Fetch Rewards to conduct these surveys and gather consumer opinions and insights. Users who participate in these surveys can earn additional rewards, and Fetch Rewards generates revenue from the research services provided.|
|Affiliate Partnerships||Fetch Rewards may establish affiliate partnerships with e-commerce platforms or retailers. When users click on affiliate links or make purchases through partner websites, Fetch Rewards can earn a commission or referral fee for driving traffic and sales to those platforms. This provides an additional revenue stream for Fetch Rewards.|
|Challenges and Competition||Fetch Rewards operates in a competitive space with other receipt-scanning and reward apps. Staying relevant and competitive, ensuring user engagement, and maintaining data privacy and security are ongoing challenges. Addressing user concerns related to data usage and ensuring the quality of survey data are also significant considerations.|
|Future Growth Strategies||Fetch Rewards’ future growth strategies may involve: – Expanding User Base: Attracting more users to the platform to increase the value of its consumer data. – Enhancing User Experience: Improving the app’s features and user interface. – Data Monetization: Leveraging its data insights to secure more partnerships and data-driven revenue streams.|
Fetch Rewards is an online shopping platform enabling users to earn rewards in exchange for scanning their receipts.
The platform was founded in 2013 by Tyler Kennedy, Daniel Litvak, and current CEO Wes Schroll.
The idea for Fetch Rewards came while Schroll was a student at the University of Wisconsin-Madison.
In the summer after his freshman year, Schroll said goodbye to university dining halls and meal plans and began stocking his own fridge and pantry.
In the process, he started receiving promotional deals from companies that wanted to reward him for his business.
This would be facilitated via an app in which consumers would scan their grocery receipts and receive points when they made a purchase from a partnering brand.
In the second half of the school year, 19-year old Schroll partnered with Tyler Kennedy, with the pair raising $185,000 in cash, office space, and legal services in just over six weeks.
Soon after, Schroll dropped out of college to pursue Fetch Rewards full time. The app was eventually launched four years later in 2017.
Fetch Rewards saw rapid growth during the global coronavirus pandemic, with more than 7 million active users scanning 50 receipts per second.
The company attained unicorn status after raising $210 million in Series D funding in March 2021, with plans to expand internationally and into other verticals such as quick-service restaurants.
Fetch rewards business model
As stated earlier, Fetch Rewards is a shopping app that compensates consumers for scanning their receipts.
This is not a new concept, but the company has managed to make the process more simple to encourage user uptake.
Users can take a quick photo with their smartphones or use the app’s eReceipt button to earn points.
The app also has exclusive deals where shoppers can earn more points and there are no limits on how much a shopper needs to spend to qualify.
Purchases can be made from virtually any drug, grocery, liquor, hardware, or pet store. Gas stations are also part of the scheme.
Once a certain number of points have been accrued, users can exchange them for gift cards from participating stores such as Target or Amazon.
For every 1,000 points accrued, the user earns approximately $1.
Fetch Rewards revenue generation
Fetch Rewards works on the affiliate business model, with revenue derived from affiliate commissions paid by partnering brands. To a lesser extent, the company also earns revenue from interchange fees.
Let’s take a look at this approach in more detail below.
Most revenue comes from affiliate commissions, otherwise known as referral fees.
Fetch Rewards is compensated by partnering brands whenever a shopper purchases one of their products on the platform.
The commission, which is a percentage of the total purchase price, is based on the contractual arrangement between both parties.
Fetch Rewards launched a branded debit card in late 2020, which allows the company to college interchange fees.
Whenever a user pays with this debit card, an interchange fee is paid by the participating merchant to Mastercard.
The card issuer then shares a portion of this fee with Fetch Rewards in exchange for promoting its card to users.
- Origin and Founders:
- Fetch Rewards is an online shopping platform where users earn rewards by scanning receipts.
- Co-founded by Wes Schroll, Tyler Kennedy, and Daniel Litvak.
- Wes Schroll got the idea while imagining a world where companies demonstrated loyalty to consumers.
- Simplified Rewards System:
- Fetch Rewards makes the process of earning rewards simple by allowing users to scan receipts from any store or gas station.
- Users earn points for each receipt scanned, which can be exchanged for gift cards.
- Growth and Unicorn Status:
- Rapid growth during the pandemic with over 7 million active users scanning 50 receipts per second.
- Became a unicorn company after raising $210 million in Series D funding in March 2021.
- Fetch Rewards Business Model:
- Users earn rewards by scanning receipts using their smartphones.
- App provides exclusive deals and no spending limits for earning points.
- Purchases from various stores, including drug, grocery, liquor, hardware, pet stores, and gas stations, are eligible.
- Revenue Generation:
- Fetch Rewards operates on an affiliate business model.
- Generates revenue through affiliate commissions paid by partnering brands when users purchase their products on the platform.
- Fetch Rewards earns a percentage of the total purchase price as a commission.
- Launched a branded Mastercard debit card to earn interchange fees from participating merchants.
- Interchange fees are generated when users make payments with the branded debit card.
- Expansion and Future Plans:
- Plans to expand internationally and into other verticals, such as quick-service restaurants.
- Offers a platform for brands to reward and engage with consumers while gaining insights into purchasing data.
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