Yesterday we wrote about local startup Render winning the 500Hrs competition.
What we didn’t realize at the time was that another DFW startup came in at the #2 slot!
CardSpur combines offers with gift cards to give both consumers and the retailers more value in a much more likely transaction.
Co-founder Kevin Strawbridge is pleased with their result. “Because CardSpur is currently run by two business-minded people, the opportunity for free technology to move the business forward could not be taken lightly. We made the decision to enter knowing that it would at least help to congeal our thinking and create a direction for ourselves,” he said.
“Our prize is 90 hours of free development time. This is a great start for our company and certainly moves us forward. We are currently assessing the best way to maximize the use of 90 hours in order to position ourselves for next steps.”
So what problem is CardSpur trying to solve exactly? In a word, breakage. Breakage is a gift card industry term for all the gift cards out there that go unredeemed. In 2011 alone, Home Depot recognized $42 million in in gift card breakage. It’s a multi-billion dollar problem.
Consumers struggle to use gift cards to get meaningful gifts and often the cards go unused. Retailers want people to use the cards more often. Why? Because, on average, consumers spend ~17% more than the card balance when making purchases.
CardSpur’s thesis is that by combining coupons/offers with gift cards in a meaningful way they can increase the redemption rate and provide value to all parties. The company already has a patent pending on its process.
The team certainly has the background and experience to take on this problem. Strawbridge and co-founder Adam Smith have over 25 years of experience in e-commerce and deals/coupons and have been involved with both startups and successful, multi-million dollar companies in the space.