How Lumi, a Nigerian reward startup, assists businesses in rewarding their customers
How Lumi, a Nigerian reward startup, assists businesses in rewarding their customers
As a result of the way businesses market to new customers, technology is constantly reshaping our lives in a variety of ways. Businesses have realized the importance of providing high-quality services, effective advertising, and expanding their reach as a result of the increased number of options available to consumers.
In order to encourage consumers to purchase or use specific products and services, discounts and cashback are often offered. When compared to discounts, which allow customers to save money on products or services, cashback allows customers to get a refund for a percentage of the product's purchase price.
According to a Dosh study conducted by The Center for Generational Kinetics, offering cashback to customers will result in increased consumer spending.
Nigerian startup Lumi has positioned itself as the go-to rewards app for the country's young people, according to the company. Lumi provides businesses with a platform that allows them to connect directly with an audience that is hungry for "immediate gratification," according to the company.
In terms of how Lumi works
It was founded by Wale Adeniji, who is also the company's current CEO, in the year 2020. It was officially launched in Lagos, Nigeria, in December 2020. Wale is a trained engineer who has spent the majority of his professional life in Toronto, Canada, where he has specialized in advanced analytics and machine learning.
Lumi was founded on the premise that Africa's emerging millennial and Generation Z populations are the target market for the vast majority of new businesses, as well as many established businesses in the continent.
Using Lumi as a platform, businesses can either directly sell their products and services to this engaged audience or gather insights from them through consumer research. Contextual validation, pain point validation, message/media testing, and brand perception, awareness, and satisfaction are all examples of activities that fall under the umbrella term "consumer research."
Lumi connects users with products and services that they already enjoy or are likely to enjoy as a result of advanced analytics and data science techniques. Lumi's in-app blog also serves to educate users on topics such as consumer behavior and financial literacy.
It is possible for users to accumulate enough points through this system to meet their weekly airtime or mobile data requirements.
Users can earn points on the platform that can be redeemed for cash, and it's completely free to use the service. The rate at which you earn on Lumi is entirely dependent on how much time you put into the platform. Reward programs, according to the startup, are funded through revenue generated by businesses with which it partners or integrates, as well as businesses for whom it conducts consumer research,
60,000 young people have been onboarded, an increase of 16% month over month
After only a little more than two years since its launch, Lumi has gained some traction. Since its launch, more than 60,000 millennials and Generation Zers have taken advantage of it to earn rewards and cashback on everyday purchases, utility payments, and sharing their opinions and experiences through short surveys and a variety of other e-commerce offerings, among other things.
Additionally, the startup has experienced month-over-month growth of 16 percent, solidifying its position as the go-to destination for rewards programs.
Lumi is prepared to grow its user base as well as its business partnerships in the future. The first step is to create a mobile application for use on mobile devices. The web app currently contains all functionality and serves as the platform through which users can earn cashback and points for participating in polls.
The company is also interested in collaborating with businesses that provide incentives to both existing and new customers. They can also advertise their products and services to Lumi's audience, generating new business and leads as a result of their efforts.
Additionally, Wale, the founder and CEO of the startup, has expressed confidence in the startup's target audience and the benefits it can provide to businesses.
With the ability to listen in on Nigeria's most active consumer populations, the CEO explained that the company can assist businesses in reaching them more effectively in ways that only the company can provide.
