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Scoutmob: Adding Loyalty and Other ‘Non-Push’ Tools to the Deals Mix

By: 10 January 2013

Scoutmob, the Atlanta-based, mobile deals provider, has been taking a fresh approach to the deals space since its launch. It has focused entirely on mobile to leverage geo-location; changed the business model from commissions on deal value to flat fee; and hired dedicated sales and editorial people in each of its 13 markets instead of relying on centralized resources.

The company’s s innovative efforts continue. It recently rolled out Shoppe, an Etsy-like arts feature that lets local artists sell their goods. Over the next couple of weeks, it is unveiling its next moves, including a pilot test of the First Data/CardSpring “OfferWise” loyalty program and integration with Google Lab’s Field Trip.

The entire deals space – including Scoutmob — suffered a major slow down in growth in 2012 after some slowness in 2011, suggests co-founder Michael Tavani. Hence, a strategic decision instead to stay put where it was, rather than add new markets, and focus on new distribution methods, new revenue streams and features.

Next week, the company will, for instance, roll out the Offer Wise pilot program in Atlanta with a limited number of merchants and consumers. The program, dubbed “Local Loyalty,” lets users receive loyalty points every time they check out of a participating merchants with an acqusition.

The points accumulate network-wide, instead of being limited to individual merchants. Users typically receive a reward on the 10th checkout. Merchants will pay a small fee per redemption, and are being solicited via their affiliation with First Data, the processing giant which handles over 50 percent of U.S. transactions.

The company’s other major initiative is an integration with Google’s FieldTrip, an Android-only App (at this point) which reveals things to do on a mobile maps as users go by them. FieldTrip, which was developed by Google Maps leader John Hanke as an independent effort, launched last October.

Tavani says that inclusion on Field Trip is part of a broader effort to get beyond the “push” of email offers, and compensate for any email fatigue that is impacting the industry.

“This is the next phase of push,” says Tavani. “There is a ton of value in the discovery part of it.” Non-push efforts such as personalization really haven’t had much of an impact for Groupon and others yet, he suggests (although Groupon says it has been able to boost yield by 50 percent with such efforts.) While a certain number of Scoutmob users may be personalizing their mobile app, it is hard to tell how many are doing that.


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  • Builder said:

    This eeks of a startup that keeps on iterating until they find a business model that works. Wonder how many iterations they can try before they run out of cash and disappear?

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