CardStar Lets You Check-in at Checkout

CardStar offers mobile users the ability to manage all their loyalty cards from one app. We first wrote about innovative application in March:

Cardstar is a fascinating company that sits at the intersection of offers and deals, which is fast-growing category online, and mobile loyalty marketing which is already very powerful. In terms of the latter category, we ran into Jay Highley, formerly of Tetherball360. We discussed some of the response rates to these mobile loyalty campaigns and he was sharing data from actual campaigns, which saw response rates of 20% to 40% in some cases.

Today the company announced several upgrades for its iPhone app. The bigger deal is the announcement that it is integrating with Foursquare to enable check-ins when users are showing/scanning their specific store barcodes at checkout. Both Foursquare and CardStar are mobile loyalty apps; the difference is that CardStar requires on-site presence to scan a barcode, whereas Foursquare allows check-ins remotely.

"One of the major pain points with LBS check-ins continues to be the inability to verify the customer was actually on-location when they checked in," explained CardStar's press materials. "This is especially important now as more retailers offer incentives/rewards based on the number of check-ins and demand a more automated redemption system." 

Here are pre-digested quotes from CardStar CEO Andy Miller (not Quattro's Andy Miller):

Our recent Foursquare survey shows that a large percentage of SMBs (mostly restaurants) currently using Foursquare don't really know if it has helped their businesses. Roughly 70% of respondents said they were tracking check-ins, however. 

 Screen shot 2010-07-27 at 8.34.20 AM

Source: Opus Research, Search Influence, Dream Systems Media (6/10), SMBs offering incentives on Foursquare

CardStar has collected tremendous data on customer behavior that can be used to push and target offers to users of its apps, more of which are coming. It is evolving into a promotions platform beyond a simple but efficient customer card loyalty tool. 

Foursquare early on became a loyalty platform and is becoming a new customer acquisition tool as well. It will be interesting to see whether this CardStar-Foursquare integration becomes a model for others and, then, whether Foursquare becomes a Twitter-like promotions platform that pushes offers through third party apps such as CardStar. 

My suspicion is yes it will.