I built this digital loyalty app to replace paper punch cards for local cafés and restaurants. Despite initial interest and even an App Store and Google Play release, merchant acquisition proved much harder than expected. Interestingly, a user created an account on the platform one day before filing a trademark for the identical name, later using this to send a complaint through Apple Legal forcing me to remove the app.
* The original name has been redacted due to a trademark claim filed after the app's release.
Challenges
- Complexity of multi-platform management Maintaining consistency across web, iOS and Android became a significant technical challenge. Each platform required different solutions and deployment processes.
- Couldn't reach critical mass of users or businesses The platform needed both users and businesses to be valuable, creating a classic chicken-and-egg problem. Without enough cafés, users wouldn't download the app, and without users, cafés weren't interested.
- Overbuilt features before validating core value I spent months building advanced features like analytics dashboards and custom reward systems before confirming that users and businesses actually wanted a digital loyalty solution.
- Unexpected trademark issue Even though no trademark existed when I launched, someone registered the name after seeing my app and used this to issue a takedown notice. This unusual situation caught me completely off-guard, as I had checked trademark databases before launch.
Lessons
- Digitization doesn't solve fundamental problems Just moving an analog process (punch cards) to digital doesn't create more loyal customers—if people aren't loyal to begin with, a punch card (digital or paper) won't change that. The value added by going digital was minimal; to truly encourage repeat visits, you need to be more innovative than simply tracking purchases.
- Digital Literacy & UX When onboarding local merchants, I saw firsthand how digital literacy barriers can block adoption. This highlighted the need for simple, intuitive UX to make technology accessible for everyone.
- Importance of market validation I should have spent more time on customer interviews and simpler prototypes before investing heavily in development. A paper prototype or Wizard of Oz test would have revealed issues much earlier.
- Register your trademark immediately Even if no trademark exists when you launch, consider filing immediately to protect your brand. The app name could have been saved had I filed for trademark protection upon launch rather than waiting.