Mobile Coupons and Price Comparison -By Steve Follmer
Steve Follmer consulted in Silicon Valley for many years, where he co-founded live365.com. He is currently between startups and analyzing opportunities in the mobile space. Steve holds a BSE degree from Princeton University.
Vpon.com
Victor Wu, founder and CEO, demonstrated Vpon, a coupon browser service which is up and running in Taiwan. Vpon was born from an award winning entrepreneurial project he created while completing his MBA in London.
Users install Vpon’s coupon browser, which runs on java and up to 80% of the installed base of phones. Technologically, Vpon has taken steps to economize on bandwidth, and depending on your data plan it costs less than $1 to receive 30 coupons. They also offer a form of location based service to filter coupons for your specific neighborhoods. Mr. Wu values the user relationship and has avoided pushing too much data at the consumer, even on an opt-in basis. There are plans for internet browser based management of the coupons as well.
Vpon has also been responsive to the needs of their advertisers, allowing them to target their coupons to specific demographics, and collecting post-sale customer satisfaction surveys via their mobile app.
In less than a year Vpon has grown to 10 employees, deployed their application, and inked deals with Starbucks, Pizza Hut, and Mister Donut. They have acheived break-even; an infusion of working capital would fuel expansion to additional countries.
Smart Buyer
Smart Buyer has launched Mprice, a cell phone based price comparison service. They presented a very insightful chart comparing web-based shopping/buying with brick & mortar (B&M) shopping. In the USA 93% of consumer purchase remain B&M, a number which approaches 97% in Taiwan. mPrice forges a unique solution that offers the best of both worlds: the convenience of network based price checking, with the convenience of B&M shopping.
The business model contemplates charging the consumer 15 cents per use. They also gather useful buying data which is sold to the channel. They are signing deals with the top chains, thus offering a countrywide solution. And they have initially singled out the low hanging fruit of 3C products.
Smart Buyer has vision and has made some good decisions. It goes without saying that their spreadsheet is driven by their installed base and daily use. If only an affilliate marketing program were offered by the local chains or could be negotiated, user fees could be eliminated.
Or if any user fees could be made more invisible through some package promotion with their carrier partners like CHT.
Smart Buyer is partnering with CHT and 7-11, and various media outlets.
These firms are on board with their vision and will prove essential in
increasing the installed base.
Commentary
I always stop to ask: list every step needed to get my parents using this product, every mouse click, every keystroke, every credit card authorization, every download, every install. Tonight’s presenters can benefit from carrier distribution deals that pre-install their application and bundle a data plan. Failing that I would set up kiosks with technical staff to install the app along with a pile of v-coupons or free trial incentives.
There has to be a viral angle here too. Let people share coupons with their friends to spread both the app and the coupons virally. Where one users tells their friends that the app is safe and useful, and even helps them install it. With an incentive e.g. “10% off on dinner. If you and your friend BOTH present a Vpon 15% off”. The merchants should also step up to the plate and help seed.
To get these and other products to turnkey simplicity, where not only our parents but our grandparents use them daily, it takes an ecosystem. Japan remains an intriguing example, where indeed parents and grandparents use many advance mobile apps.As with wasabi, Japanese ecosystems don’t always take root in the West. But I have a feeling Taiwan could forge a solution that bridges East and West.
You can see the photos from the 15th MobileMonday Taipei event here.