The launch of Shopitize’s mobile couponing service this month enables brands to save £150 million in paper couponing fraud each year.
Dr Alexey Andriyanenko, joint managing director and co-founder of Shopitize, says mobile couponing has the capacity to be virtually 100% fraud-free.
Mobile shopping innovator Shopitize (www.shopitize.com) says the misredemption and malredemption of paper coupons is costing retailers and brands £150 million each year but will become less and less of a problem in the UK as mobile couponing takes hold of the shopping market.
The UK’s £500million voucher and coupon market is vital to both manufacturers and retailers as they struggle to attract customers in these tough economic times. However, although paper couponing is seen as a valuable marketing tool, it is estimated that around 30% of all coupons used are subject to fraud.
The misredemption and malredemption of coupons is a growing social problem. Many shoppers see little wrong in buying invalid goods with coupons, or using out-of-date coupons if they can get away with it. It has also become commonplace to share a discount code with friends, or through social media sites so everyone can cash-in.
However, it is not just the individual who is playing the system, as paper coupon fraud is now big business. Internet sites are full of coupon bundle offers that have been collected wholesale from newspapers and magazines. Photocopying or digital manipulation is also widespread. All of this is causing major rifts between retailers and brands as they argue over who pays the bill.
Andriyanenko explains: “It is extremely difficult to try and come up with a solution that prevents paper couponing being subject to fraud. Attempts have been made, either by training retail staff to be more vigilant or by introducing more sophisticated bar-coding, but ultimately mis/malredemption still takes place which greatly increases the costs for any brand running a campaign.
“What’s clear is there is no desire by any side for the coupon industry to be abandoned, rather a solution needs to be found to protect it. This is one of the main reasons why paper couponing is now being complemented by new digital and mobile solutions. Like everything, couponing has evolved and the transition to mobile couponing is inevitable. Not only does it make the coupon experience simpler and faster for both the consumer and the retailer, but it makes the whole process much safer.
“The most obvious advantage of mobile couponing is there is no paper involved, thus making it free from forgery. Now couponing has become an automated process which gives consumers relevant coupons as a result of their purchase history. Entitlement is key. We can tell exactly who is entitled to a coupon and who is not by verifying their shopping receipts. Therefore, we have the exact numbers of who should be using their m-coupons and who should not. We also have the option for manual verification if we suspect anything untoward is taking place.”
“Mobile couponing also does not rely upon the retailer to authorise the coupon, so human error is eliminated. A busy, tired, cashier no longer has to manually verify countless paper coupons at the checkout. Now it is done via our automated ecosystem, not at the check-out, thus preventing queue bottlenecks.
“It is very difficult to say that anything is 100% safe from fraud, but this is certainly what we are aiming for. What we can guarantee is that our mobile couponing service has the capability to dramatically reduce the level of coupon fraud in the UK which in turn will save retailers and manufacturers a substantial amount of money.”
Shopitize’s free mobile couponing app was launched for both android and iPhone earlier this month. It enables big name brands such as Kellogg’s and United Biscuits to send exclusive deals on their products direct to the consumer’s smartphone. Users simply visit any supermarket or shop to buy a featured product, use the app to check the promoted products’ barcodes and snap their paper receipts, the image is automatically uploaded to the mobile ecosystem and once validated, they claim cashback.
Shopitize aims to change the way consumers interact with the brands they love. The more consumers join and use the Shopitize mobile couponing ecosystem, the more its mobile shopping platform learns about consumers’ buying habits and the more sophisticated the exclusive deals they’ll receive, saving both time and money for consumers and the brands they love. Visit www.shopitize.com
SMX Is the Only Conference Entirely Devoted to Search Marketing
Special. It is double discount time at theMarketingblog. Book now for SMX London in May this year and save up to £900 plus you can have a further huge savings of 15%. Remember to book before February the 6th.
First Big Discount. Save up to £900 with Super Early Bird Rates until February 6 – register today!
The Second One. Get the special Marketingblog 15% discount . Your special code is THEMARKETINGBLOGSMX. Use it with the Super Early Bird Rate to get your double discount. It's a no brainer
Mobikats Enterprise, a UK based developer of iBeacons hardware and app solutions, is looking to raise up to £3m via a minority stake sale to beef its sales and development team, CEO Phillip Hunt said.
Mobikats Enterprise recently hired Whoosh PR and is considering appointing a financial adviser for the fundraising, which is expected to start in midFebruary once it finalises its business plan.
CFO and 15% stake shareholder, Peter Morgan, will meantime oversee the fundraising process. Hunt and CTO John Haselden own a 42.5% stake each, the CEO said.
Time is like a river. You cannot touch the water twice, because the flow that has passed will never pass again. Enjoy every moment of life. As a bagpiper, I play many gigs. Recently I was asked by a funeral director to play at a graveside service for a homeless man.[more…]
Aer Lingus has confirmed that its board is considering a sweetened offer from British Airways owner IAG.
The Irish flag carrier said IAG had raised its all-cash offer to €2.55 (£1.90) per share, including a cash dividend per share of five euro cents.
It added that the proposal remains conditional on due diligence, board recommendation and the receipt of "irrevocable commitments from Ryanair and the minister of finance for Ireland" to accept the offer.
Turning the best ideas in multichannel into action. Hear from the best in multichannel and drive your business forward. IRX put a year’s worth of learning, ideas and solutions at your disposal, providing an experience for you that is the most efficient way to spend two days.
Small firms are being ‘plagued’ by a poor payment culture, with some respected household brand names ‘abusing’ their suppliers, it was claimed last night.
The accusations came as it emerged that US consumer giant Heinz has more than doubled the length of time it is making small British suppliers wait for bills to be settled.Leading lobby group the Federation of Small Businesses said large companies were being ‘tarnished’ by their treatment of small suppliers and that their behaviour is damaging the reputation of business as a whole.