Category Archives: Coupons/Promotions

Uber Tests 10 Minute Delivery Service

The big online retailers such as Amazon, eBay, Groupon and WalMart have been focusing on developing same day delivery channels. Same day delivery is an effort that that may not only boost their edge over other retailers, but also add new anchor channels such as groceries, and also boost impulse sales.

We’ve also seen other players experiment with delivery. The San Diego Union Tribune, for instance, has tested delivery of coffee beans with the morning newspaper. Newspapers have been also a channel for free CPG samples with Sunday newspapers for years.

Now along comes Uber, in the midst of an ocean of bad publicity. It is testing a 10 minute delivery program called Uber Essentials, which is an evolution of an earlier Uber delivery test. The program allows under- utilized drivers to drop off key items from Flu medicine to toothpaste to birth control. The items are roughly the same price as local stores. As with Uber car service, items(and tips) are automatically charged to Uber accounts. One possible hangup: Customers must meet their Uber driver on the street. They also cannot deliver alcohol.

The program is being launched with a free order up to $20, has a tie-in with a free sample of Dunkin Donuts packaged coffee – illustrating a potential advertising opportunity.

The BIA/Kelsey/CardLinx Survey: Momentum For Card Linked Offers

Will card-linked offers supplement coupons and advertising for national and local merchants and services? Will financial institutions such as banks and credit card companies take advantage of their access to card data to become major players in ecommerce and media as well? And will cash back remain the primary driver of the card-linked offer space?

These are some of the key questions we asked in an anonymized survey we have just completed with members of The CardLinx Association, whose roster include such companies as Microsoft, Facebook, Bank of America, MasterCard, American Express, First Data, Cardlytics, Living Social, Deem and Linkable. Some non-members also participated in the survey, which had 14 respondents in total.

One key finding: this space appears to have momentum. While some startup publishers have ceased their operations, others have dug in. And more merchants and consumers are participating in card-linked offers than last year. Respondents also noted that card-linked offers have gone from representing “experimental” marketing budgets to – in some cases — seven figure contracts.

Survey results will have their public debut at BIA/Kelsey’s Leading in Local: Interactive Local Media Conference Dec. 3-5 in San Francisco. The session also includes interviews with CardLinx Association CEO Silvio Tavares and Cardlytics CMO Kasey Byrne.

First Data Adds Beacon Technology to its Perka Loyalty Solution

First Data, the payment processing giant, has been building up a suite of services that would take the company far beyond payment processing and inject it squarely in the middle of SMB marketing.

The suite as currently configured includes the Clover Point of Sales system; Insightics analytics of transactions; Gyft virtual gift card services; and Perka, a sophisticated loyalty program for SMBs. Each of the services works independently, but are also increasingly integrated as well.

Perka was purchased by First Data roughly one year ago; in tandem with First Data’ purchase of Clover. Competing with Belly, Five Stars, SpotOn and other loyalty services, Perka now has over 1,000 merchants, and has recently increased its monthly fee for new customers from $50 to $59.99.

Co-founder Rob Bethge recently talked with BIA/Kelsey about the service’s progress under First Data – a sale which Bethge says has given it a chance to scale on a global basis– technologically and commercially – much faster than if it had been a standalone company.

Bethge says the company is just now “commercializing” with First Data’s various channels, including the use of up to 1,700 First Data sales reps of various stripes reaching out to SMBs. The service’s latest feature is the addition of proprietary wireless Beacon technology with rolling security codes, which will be provided for free to subscribers. The technology, which requires consumer opt-in, allows stores to know precisely who is in their store at any time – a favorite merchant feature, says Bethge.

Among other things, stores could theoretically craft special promotions based on this knowledge. The service, which is Bluetooth enabled, also allows easy transactions when consumers hands are full (i.e. if they are carrying a baby or a cup of coffee).

Theoretically, using the Beacon, consumers can turn on the feature for the morning at some stores, and then turn it on for other stores in the evening. The Beacon technology also enables individual merchant apps, in addition to Web access. “It allows for very location oriented offers,” Bethge says.

Interestingly, Bethge says the Beacon service would not have had an impact when Perka was first introduced in 2011. At that time, “less than half of locations had WiFi. Now it is not even a question.”

Gannett’s Key Ring: Integrating Circulars With Loyalty Programs


Gannett’s acquisition of Key Ring two years ago was something of a head shaker. Was the media giant diving into online loyalty marketing, an area mostly dominated by financial institution-related companies? Two years later, more light has been shed on the Key Ring acquisition.

Key Ring is a mobile app that lets consumers electronically enter their loyalty card in in one digital location. In this regard, it is like Constant Contact’s CardStar. What we’ve learned is that Gannett is using the App to drive targeted traffic to its big box and retail circular advertisers from ShopLocal, the sister G/O Digital brand.

CEO Chris Fagan tells us Key Ring, which has 15 full time employees, now provides circular content from 160 retailers. Of these, 90 are providing exclusive content via ShopLocal. Offers can be triggered on user cell phones by geo location or via in-store beacons. You might access “Here is what is on sale at Target” for instance. Consumers can use it to explore and discover what is nearby.

The ShopLocal ties makes it possible to scale all the merchant and brand relationships without having to deal with each merchant and brand – a major barrier for other companies, says Fagan. The app also incorporates 65,000 coupons a month from Clipper Magazine.

What Key Ring really brings to the table is enormous scale. Fagan says the App has a surprisingly high 11.1 million customers. Active users may access it five or six times a month, with the more steady users not only accessing circular content, but the site’s shopping lists. These consumers have really high retention and recurring usage, says Fagan.

Interestingly, the majority of the customers are driven organically by good consumer press and other sources, he says. For instance, the comapny recently got a good mention in Good Housekeeping Magazine that really drove usage. Gannett’s cross media ads in USA Today and on its TV stations have been helpful, but not especially critical.

All Roads Lead to Groceries: Groupon Adds ‘Snap’ Loyalty Program

When it comes to local commerce and loyalty programs, all roads lead to groceries. That’s the feeling of key companies in the space, including WalMart, Amazon, Google and eBay. Groupon this week announced Snap, a grocery coupon and loyalty program that gets it into groceries in a more meaningful way than prior efforts to go in via daily deals – where the discounts were not sustainable in an industry that is more dependent on “cents off” than “55 percent” off.

As reported in Chicago Business, Snap replaces Freebies, a coupon program launched in 2013 that has attracted 30,000 coupons from 7,000 retailers. Users of Snap receive offers and get money back after they aggregate $20 of discounts — if they upload photos of receipts showing the goods that were promoted. (This validation effort could prove a little klugey.)

While a robust grocery and delivery program has its own value, it may also lead to a key gateway into women shoppers; strong user behavior analytics; and peripheral deliveries or transactions with other goods such as electronics, etc. Groceries are also used more often than other key anchor promotion verticals, such as restaurants and services. Google similarly entered the grocery coupon business last year with the rollout of Zavers.

In Groupon’s case, the Snap program also supports its broader Marketplace effort, which allows advertisers to participate in many different channels (deals, coupons, ads). Seventy-five percent of Groupon business advertisers currently use Groupon for at least one feature in addition to the one-off deals. One of the key issues with Marketplace has been to provide a volume of listings so that searchers will always find things when they search for them. Currently, 9 percent of Groupon’s transactions emanate from Marketplace.

The Snap program does not get Groupon into dedicated home delivery — yet — but it does build out the marketplace, and could serve as an effective building block.

Ex Reach Local CEO Revisits Home Improvement; Groupon is Lead Investor

ReachLocal cofounder Zorik Gordon left the company last year after veering sharply to the left with ClubLocal, a consumer-facing brand that would collect home improvement pricing and reviews, and assign jobs to home improvement pros.

Now, Gordon and several ClubLocal alumnis are back with Serviz, a similar service that has launched in southern California after running a beta since February. Groupon is Serviz’s largest investor, with an undisclosed ownership share. ReachLocal, where much of the intellectual work was developed, still controls 19.8 percent of the company.

Groupon could theoretically apply its sales forces to recruit home improvement pros, but Gordon tells us that Serviz is being launched with its own sales forces. Most of the core concepts remain the same from ClubLocal –recruit consumers with convenience, price and service guarantees and a strong review base, and recruit home improvement pros with guaranteed work. “They are fundamentally on demand home services,” said Gordon. “”What we’ve done is focus on transparency, and transparency of pricing. Uber has shown what it takes to really hold and disrupt the conventional ecosystem.

The key differences this time take off from this theme: there is a focus on sole practitioners, who have more flexibility in their time and ability to charge, and ultimately, much lower prices. “You don’t need to charge $250 for a home visit from a home tech, who is being paid $15 an hour,” said Gordon.

Gordon acknowledges there is a lot of competition in the space, with the emergence of players like Thumbtack, Pro.com, Handy, Home Joy and even Amazon coming in, all building on a base that already has Angie’s List and Home Advisor.

Amazon will come in as a marketplace, and won’t be a direct competitor, he says. In fact, he hopes to participate in the Amazon marketplace. “No one is going to come to your house with an Amazon shirt,” says Gordon.

The other services range from what Gordon characterizes as directory listers, like Thumbtack and Pro.com; to low end service fulfillment players like Handy. Serviz will work at higher point in the value chain by focusing more on specialized service providers like HVAC and electrical. “We’re building a horizontal platform around higher end home services,” he says.

Zorik Gordon and Thumbtack CEO Marco Zappacosta are among the initial speakers appearing at Leading in Local: Interactive Local Media, Dec. 3-5 in San Francisco. Get early pricing now.

Signpost: CRM, Marketing Automation Enhance Promotions

Signpost_Logo (3)

Deals and coupons remain anchors for local business promotion. But they can now be customized based on customer behavior and better marketing automation tools.
Signpost is eager to leverage these developments. While the 200 person company launched in 2011 as a “Deals Scout” and promotions manager – initially supporting Google Offers and others — it has increasingly gotten into software development.

Today, the company – which has raised about $15 million from Spark Capital, Google Ventures, OpenView Venture Partners and others — announced a new strategy that measures SMB interactions with customers (calls, email and credit card transactions). That data is then used it to drive a number of automated marketing solutions (coupons, reviews, referrals). It can also be used to generate real time reports on spending behavior, and rank customers by transaction activity, transaction size and recent interactions.

Pricing for the service is set for $199 a month, which represents a $50 increase from the earlier, promotions-oriented effort.

The question for Signpost is whether it can effectively carve out a niche for itself. Other companies, ranging from Marketo and HubSpot to Groupon, First Data and ForwardLine, are also delivering a wider range of SMB targeting services based on customer behavior they are tracking.

Signpost CEO Stu Wall is a featured speaker at Leading in Local: SMB Digital Marketing, which takes place Sept. 22-24 in New Orleans. You can get more information here.


Signpost CEO Stu Wall