How many customer loyalty cards are you currently carrying in your wallet? Punch or plastic cards for the local grocery store, casino, bookstore and coffee shop are bulking up consumer wallets across the country…and a Seattle startup, Punchkeeper, has created an alternative to the fat wallet syndrome using a smartphone application and QR codes. In just a few months, co-founder Val Trask and her team have enticed numerous local businesses to ditch paper and plastic in favor of digital. As part of our continuing series of interviews with entrepreneurs, we asked Val to share some of her startup experiences.
Question: Tell us a little about Punchkeeper. How did you get the idea for this startup, and who are your current mentors (if any)? What’s your timeline for expansion — will you be seeking investors?
Answer: Punchkeeper was born from lunch hour banter between my co-founders Matty Mitchell, designer and Jon Ohrt, developer. They loved loyalty programs but hated carrying punch cards and it wasn’t long before they realized that, with their powers combined, they could do something about it. At the time I was finishing my MBA and they brought me on to turn the idea into a business.
We spent our first year bootstrapping. We were as scrappy as possible while conducting market research, making the app, beta testing, building a team, and getting into our first stores. Our next phase will require funding to scale and add more features. We’re polishing our pitch deck at the moment.
Question: Once Google acquired Punchd, we figured Google Wallet would eventually include a digital loyalty card function. When you have a potential competitor as large as Google, how does this figure into your marketing strategy? How do you plan to differentiate Punchkeeper from similar alternatives?
Answer: Nobody likes to hear that their new competitor is Google. It’s a young and large industry though, and there’s no shortage of potential. Punchkeeper differentiates by offering customization of digital cards so that businesses can actually have their cards reflect their own branding; many business owners liked that about paper cards and we didn’t want to lose that personalization. Also, not every small business owner wants to work with a big company, many are fond of greater human contact and small businesses helping small businesses.
Question: You’ve got quite a roster of local area small businesses that have signed on to use Punchkeeper. How did you reach out to them? As a startup, we’d assume that your sales staff is minimal, so can you share your successful strategies for building a merchant network with other entrepreneurs? What has been your best promotional tactic to date? Do you plan to extend out from the Seattle area by the end of the year?
Answer: We’ve worked hard to get in front of as many business owners as possible. It’s tough when there’s a small staff but the app isn’t worth much without locations for people to use it. The only advice that I can give to similar businesses trying to gain initial traction with a limited budget and bandwidth is to just keep at it – like so many things, it’s a numbers game.
In terms of promotions, we’ve tried a lot of grassroots approaches. The best so far has been word of mouth, or first-hand experiences from happy business owners and the customers that visit their shops. A lot of the success of adoption at a business is the extent to which staff is trained and promotional materials are visible. We dedicate substantial effort into understanding how to best help a business reach out to its audience effectively.
We’re already in a few locations outside of Seattle and we plan to use funding to help support more growth nationally. One of the beauties of a business like this is that you could be a business owner in a town that I’ve never even heard of and be up-and-running with our app within a matter of minutes.










