SAN FRANCISCO – Yesterday, San Francisco-based tech start-up FiveStars announced a new round of funding that may just help the customer loyalty company, which sells software to replace traditional paper punch cards, to bring its service to more small businesses, according to an article in Inc.

The company primarily targets small- and medium-size companies with marketing tools designed to retain customers by offering personalized rewards and promotions. By tracking individual purchasing histories, the company identifies customers who haven't revisited a business recently and incentivizes them to return, through email or text messages.

FiveStars charges small businesses around $200 per month for its service, and now works with more than 5,300 storefronts throughout the country. The company says it has grown revenue by 300% during the past year, handing out more than $10 million in customer rewards and driving 1.8 million in-store visits.

The company takes the approach of focusing on existing customers, citing data showing that 20% of customers make up 80% of small business revenue.

To learn more about developing strong loyalty programs for your brand, be sure to attend the NACS Show session, “Unplug Your Loyalty Program” on Thursday, October 9. Review all the NACS Show sessions and plan your show experience now!