Mobile Fringe, a Toronto firm ranked by Business Insider as the number one mobile company to watch in 2011, has launched Push a Deal, the first service to use consumers' smartphone GPS locations to send them deals when they cross the geo-fences and enter a store's immediate vicinity.
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. 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.
"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. Across all countries, 94 per cent of location-based services users said they found them valuable. Four-in-10 perceived value increases with use as the services become ingrained in day-to-day life.
"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 Steve. "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, 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.