Prefcity considers themselves a “Facebook for sharing preferences”, no not preferences in an app, on a smarphone or on a computer, but consumer preferences regarding retail and restaurants. Yes Prefcity is yet another new loyalty and rewards platform. Prefcity has addressed some of the downfalls to other similar platforms though and that’s what makes this startup different.
Prefcity is targeting businesses loyal customer base. They offer a product called PrefPerks to consumers and they offer a highly customizable, pay as you go format for merchants.
“As we experiment with Prefperks our intention is to create a win-win situation for consumers who want to find good deals at places they love and businesses looking to maintain healthy margins, generally diminished by some of the more mainstream daily deal sites,” said Vic Sosikian co-founder of Prefcity.
On the merchant side they are paid directly by the consumer without a mass redeem cycle like Groupon or LivingSocial. This gives the merchant the flexibility to try out different types of deals and as many deals as they want. In the simplest of terms, a PrefPerk is given to a loyal customer of an establishment. It’s more of a “reservation” card for that specific deal.
Take the Groupon model for instance. When a Groupon deal is sent out, the entire group needs to buy into it by paying Groupon directly. Groupon takes their cut and then distributes the money to the merchant. With PrefCity the PrefPerk is sent out and then if the customer wants to use it they just pay the merchant as they normally would with a regular coupon or discount.
The Southern California based startup is testing in Los Angeles and plans to bring New York, San Francisco and Chicago online later this year. We got a chance to interview Prefcity co-founder Vic Sosikian. Check out the interview below.