Mobile Fringe has launched Push a Deal, the first service to use willing consumers’ smart-phone GPS locations to send them deals when they cross the “geo-fence” and enter a participating store’s immediate vicinity. For the smartphone savvy set, this app means immediate savings on things to buy, do and eat at close proximity.
Since its launch in late 2008, Mobile Fringe has built a robust mobile retail platform that has achieved over one million user impressions through retail shopping apps such as the Toronto Eaton Centre and Yorkdale Shopping Centre apps. Now the company is using that expertise and launching a mobile location-based service where deals are presented and pushed to users who are truly in the right place at the right time. Starting in Toronto, Push a Deal will be rolling out to Canadian cities over the ensuing months. In fact, willing consumers in Vancouver and Montreal can already download the app and have existing local group deals sent to them.
Push a Deal is launching with a bang this September through a strategic relationship with ARAMARK Canada, the company that provides award-winning food services to several universities including University of Toronto. Hungry/thirsty students across U of T’s St. George campus will be alerted to nearby deals from dozens of food service locations, from cafes and coffee shops, to Indian food takeout. This fall will see a significant promotional push supported by ARAMARK, including free food for a month at New College and free Starbucks coffee in Robarts Library Cafe.
“Despite the success of the group buying model and deal-of-the-day websites, today’s young consumers are on their phones, not their computers,” said Steve Sorge, CEO of Mobile Fringe. “Push a Deal is an acknowledgment of that shift and is the first service dedicated to delivering deals based on where a person is standing. When you are close to the deal, you will get an alert.”
A recent Microsoft study of 1,500 people in the U.K., U.S., Canada, Japan, and Germany found that 51 per cent had used a location-based service, and 62 per cent were aware of such services. Young men aged 18-34 are the primary drivers of adoption. Across all countries, a whopping 94 per cent of location-based services users said they found them valuable. Four-in-10 use location-based services once a week and perceived value increases with use as the services become ingrained in day-to-day life.
“I like that I only receive an alert when I actually get close to one of Push a Deal’s specials and that the deals come in at the perfect times, like a coffee deal in the morning, or I’ll receive a lunch deal around 11:30. It just makes sense,” said Amy Jordan of Oakville.
“My Push a Deal iPhone app is amazing, it finds me great deals, free lunches and even private sales! It has revolutionized my dining and shopping experiences in downtown Toronto,” said Vincent Lee of Toronto.
Push a Deal is not just for food, but all sorts of goods and services. It is a one-stop-shop for all of your deal needs. When on the app, members choose to view either exclusive deals, or one of the many group site deals that are close to their location.
Here is an example of a couple of pushes a consumer would receive:
- Free Grande coffee at Starbucks in Robarts Library Cafe today and tomorrow. You are 500 meters from this deal. Get directions?
- 50% Off – Buy One Pair of Jeans and get the second free, today only! Right around the corner. Get directions?
“The financial model of the deal-of-the-day websites, where retailers only receive 25 per cent of a product or service’s retail price is simply unsustainable for businesses,” said Sorge. “Push a Deal offers a risk free, strategic marketing tool for retailers who want to actually increase traffic without decimating their bottom line.”
To that end, Push a Deal is not putting a threshold on the level of discount a retailer offers and it only takes 25 per cent of the deal amount leaving the rest for the retailer. This is versus 50 per cent taken by the predominant group-buying websites. Moreover, a risk-free compensation model means companies only pay Push a Deal when someone actually redeems an offer, unlike deal-of-the-day websites who control all the cash.
Push a Deal has a link for stores where retailers can sign up, create an offer online in 60 seconds, and start pushing deals. Stores can choose when to send out deal alerts, based on inventory, or how busy they are and therefore drive foot traffic when they actually need it. Additionally, for the first two months all deal redemptions for new stores will be free.