Faucet Community raises $4M for its customizable rewards program – TechCrunch

Tap Network raises $4M for its customizable rewards program – TechCrunch

Tap Network is offering a brand new strategy to loyalty rewards applications that it describes as “rewards as a service.”

Chances are you’ll acknowledge the Faucet Community identify, in addition to its co-founder and CEO Lin Dai, from Hooch, a startup that offered a drink-a-day subscription service earlier than shifting focus to a broader rewards program. Dai advised me he “discovered rather a lot from the Hooch expertise” however in the end “determined that Faucet is a a lot greater alternative, we’re actually taking a look at rewards basically.”

So Faucet Community is a brand new startup, one which lately raised $4 million in funding from buyers together with Revelis Capital, Nima Capital, the Forbes household workplace, Warner Music Group, Entry Industries, Invoice Tai, Bob Hurst, Edward Devlin and others.

Dai mentioned that standard rewards applications are solely accessible to the highest 10% or 20% of an organization’s clients. So in his view, companies have a chance to “tremendous serve the typical clients who 40 years in the past may not have been thought of necessary clients, however who right this moment may very well be constructing a loyalty conduct sample.”

Picture Credit: Faucet Community

He added that making rewards applications accessible to extra clients has an additional benefit for a lot of companies, as a result of “whether or not it’s a significant financial institution or main journey firm, they’re beginning to accrue billions of {dollars}
which can be locked up in these wallets.” These factors may by no means be redeemed, however they’re nonetheless thought of liabilities from an accounting perspective.

Faucet Community goals to resolve this downside by permitting clients to spend these factors via a broader community of rewards, which might often be redeemed at a decrease level stage. It’s provided as a white-label addition to an present rewards program, with every program selecting the rewards that may be the very best match for his or her clients.

For instance, Uber lately labored with Faucet Community to expand its Uber Rewards program, providing new Faucet Community-powered rewards like free Apple Music or HBO Max, in addition to the choice to donate to causes like World Central Kitchen. And the minimal variety of factors wanted to say a reward fell from 500 factors to 100 factors.

Different firms utilizing Faucet Community embrace Warner Music Group (which, as beforehand talked about, can be an investor) and privacy-focused browser company Brave.

Dai mentioned that sooner or later, Faucet may even enable shoppers to mix rewards factors from completely different applications: “If I need to redeem one thing, I’d be capable of take slightly little bit of my Uber factors, slightly little bit of my Warner factors, slightly little bit of factors from one other program” and mix them.

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