Leading customer content marketing platform Yotpo announced today they are acquiring Boston-based Swell Rewards. Swell Rewards offers premium incentive marketing solutions for eCommerce and omnichannel brands.
The acquisition expands Yotpo’s suite of commerce marketing technology solutions preferred by top direct-to-consumer (D2C) brands such as Glossier, 1-800-Flowers, and Away Travel.
Brands will be able to manage reviews, visual marketing, consumer insights, rewards, and referrals from a single platform uniquely designed to meet their customer content, advocacy, engagement, and retention needs.
Existing Integration Made Better
Yotpo and Swell Rewards have a pre-existing integration that enables commerce brands to reward customers for submitting and sharing user-generated content.
The purchase will enhance those capabilities and set the stage for new solutions that drive business growth.
For example, Yotpo’s proprietary artificial intelligence (AI) engine facilitates smarter and faster solutions for collecting, managing, displaying, and analyzing high-quality customer content will be extended to optimize Swell’s existing product line and drive future innovation.
“The current commerce marketing stack is bloated—too many disparate point solutions are making brands less agile, efficient, and competitive than they could be. By acquiring Swell Rewards, Yotpo will be able to offer a one-stop destination for activating customer advocacy and brand loyalty.”
Tomer Tagrin, Co-founder and CEO, Yotpo
Using Yotpo’s AI, the company will be able to unlock product and data synergies that improve acquisition, increase sales, and maximize customer lifetime value.
The Rise in D2C Brand eCommerce
One of the main factors for Yotpo to acquire Swell Rewards is that the company is a provider of cutting-edge technology that supports the rise of D2C brands.
D2C brands are surging in eCommerce sales and by boasting rewards and referral programs, brands can achieve an average of 9x ROI.
Since it was founded in 2015, Swell Rewards experienced an average year-over-year growth of 313% and now serves thousands of brands including mutual Yotpo customers UNTUCKit, Third Love, Tomboy X, Soko Glam, and Quay Australia.
Swell Rewards’ Co-founder and CEO Josh Enzer and Co-founder and CTO James Peerless will join Yotpo to lead strategy and product development for incentive marketing solutions.
The acquisition of Swell Rewards marks another milestone for Yotpo.
The company said that over the last three years they experienced an explosive period of growth with an 823 percent increase in annual recurring revenue, an average 200 percent increase in annual contract value, and a 487 percent increase in brand customers.
Neither company commented on the financial details of the acquisition.
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