Despite the constant digital hand-wringing that consumers have abandoned in-store shopping, brick-and-mortar retail remains a $4 trillion market. E-commerce hasn't buried physical retail, but it has forced the industry to become smarter.
Today, Tastebud Technologies, a Chicago-based startup, has acquired SocialCrunch, another local startup, in an all-stock deal to help physical stores digitally engage with their shoppers.
Founded in 2011, Tastebud is a suite of applications and software that enables retailers and brands to build personalized loyalty platforms.
For example, the startup's Retail Platform solution leverages beacon technology so that malls and outlets can deliver personalized offers to shoppers in realtime. The company's STYLESEEK software uses an algorithm-based game to identify a shopper's style and present a curated selection based on their determined taste; it's like "Pandora for e-commerce." (And if you think the STYLESEEK game resembles a BuzzFeed quiz, it's because the former kind of invented the format).
However, one of Tastebud's offerings in particular helped drive this acquisition. TASTEBUD GAMES is a feature that allows brands and publishers to execute easy, fun, customizable games in order to engage their audience.
"We’re looking forward to integrating the SocialCrunch quizzes directly within our retail mobile apps," said Co-Founder and CEO Tyler Spalding. "Our preliminary testing has shown great consumer response. The existing SocialCrunch product will continue to be supported as well; we’ve already made significant improvements to the platform."
A member of TechStars Chicago's inaugural 2013 class, SocialCrunch builds custom quizzes that are designed specifically to help brands learn about their audiences so that they can use this data to drive their businesses forward.
By adding SocialCrunch's quiz tools to its on-site tracking technology, Tastebud will be able to build loyalty platforms for retailers that can not only track consumers, but learn about their tastes, as well.
"We’re combining our depth of experience in personalization along with bluetooth beacon technology to build products that genuinely benefit and excite consumers," said Spalding. "We feel that the existing marketing powered by beacons is very rudimentary and it has a wealth of potential if done right."
Though Tastebud is currently testing out its technology in a mall in Nebraska, local shoppers will soon get an opportunity to experience the software.
Explained Spalding, "We expect Tastebud to be live in Chicago sometime in 2015."
(Image via tastebud.co)
