Store Pass App: Utlising Geo-Fencing.

Although the post "The Store Pass App. Introductions and Features."explained briefly how the app would work in regards of location and notifcations however I'd like to expand on geo fencing.

"Programs that incorporate geo-fencing allow an administrator to set up triggers so when a device enters (or exits) the boundaries defined by the administrator, a text message or email alert is sent. Many geo-fencing applications incorporate Google Earth, allowing administrators to define boundaries on top of a satellite view of a specific geographical area.  Other applications define boundaries by longitude and latitude or through user-created and Web-based maps."

[Source - Rouse, M. (2013). geo-fencing (geofencing). Available: http://whatis.techtarget.com/definition/geofencing. Last accessed 11th December 2013.]

Some practical uses that have been utilised for geo-fencing are parental controls. It's becoming more and more common that younger teenagers and children have smart phones these days and with parental controls, parents can be notified of when their child leaves a designated area. 

For construction workers, they can be notified of when they are entering no entry zones and receive SMS and alerts that way.

Geo fencing is a little bit like a gate that you can pass through.
So with geo fencing, you can set up the parameters in which you wish your offers to activate. These can be allocated as zones.

Here is an example I made using Google Maps. Depending on the parameters set by the user, they can opt in and out of as many areas/as wide of an area as they wish.

The iPhone has been using this technology for some time too now. Via the 'Remind me at a location' on the Reminders function.

Store Pass and it's Competitors.

Though I've mentioned in some previous posts that Store Pass's greatest competitors would most likely be Groupon and Voucher cloud (but only indirectly). Along my research I discovered more apps that enhanced shopping experience but none in the way that Store Pass does. But by collecting information on these apps, they can all contribute to enhance and perfecting Store Pass.

So who are the competitors and what do they do?

Let's start with the most well known ones.

• Groupon

Groupon is an American company that, due to it's success has now expanded globally. Rapidly overtaking America, Groupon soon interested the capitals of Europe and Asia also.
To reiterate the above video, Groupon (the combined words of Coupon and Group) distributes large savings and offers by encouraging users to book activities with friends. For example, if a Spa was offering 70% but required 10 individuals to sign up, these 10 individuals would have to all pay in order for the deal to "activate". If they don't reach the quote needed by the time the offer expires, all customers get their  money back.
The unique selling point of Groupon is that it works in numbers, by urging consumers to bring their friends to events, companies are guaranteed a large numbers of customers. This helps with company footfall, free marketing via word of mouth, a great deal and gains customer loyalty.

These numbers are correct as of 2012 and can be assumed to only have grown:

• The company has now sold 170 million Groupons to date and counts 33 million active customers and 250,000 merchants in 48 countries.

• In 2011, $2 billion in business sent to “Main Street” small merchants.

• Also in 2011, 11 new products launched, including a several that take the company away from the daily deals format Groupon Goods, Getaways, Rewards, Now!, and Scheduler.

• 11 acquisitions, including several in the mobile space in the year.

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However it's not always been smooth sailing for Groupon as it fell victim to it's own success with consumers placing more orders than expected for some companies.

• Vouchercloud

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Vouchercloud is the virtual take on the good old days of cutting coupons out of magazines and newspapers. Before internet discounts for your local restaurants and boutiques were invented, if an individual wanted to use a discount or coupon, they'd have to cut it out of cereal boxes and other packaging, but ever since the rise of Voucher cloud, that novelty has much been neglected as apps began taking over.

Compared to cut out and carry, Vouchercloud is:

• Always accessible as it's in app form inside your Smart Phone.
• Always up to date as updates are electronic and therefore instant.
• Location relevant and can be filtered via tabs in interests of 
• Does not require a group interest like Groupon does.

• Living Social

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Extremely similar to Groupon, Living Social encourages individuals to urge their friends to partake in deals, which earns the individual money off their original discount or purchase. Living Social states that "We help local and national businesses grow by introducing them to high-quality new customers. We deliver compelling and cost-effective marketing solutions for businesses large and small and provide our partners with the tools to make our members their regulars." 

Living social offers discounts from local activities, to small getaways and coupons for shopping.

Covering all platforms of smartphone, Living social is also available on the App Store, Google Play and Windows Phone - demonstrated above.

However Living Social seems to be quite hit and miss from the reviews read on this site. Another site gives the same idea of disappointments by Social Living.

Those are what I believe to be the top three competitors for Store pass.

I've also looked at other discount apps/websites and comparison sites for a richer understanding of how they work. An extremely comprehensive blog has put together a lost of the Top 20 Mobile Shopping Apps can be viewed here.

The Store Pass App. Introductions and Features.

So after all this research what have I concluded?

My initial idea stays the same.

The App:

The Pros:

• As I already demonstrated with the Bump App and more initial research this is very possible.
• Provides the function for users to opt in and out of their favourite retail stores and restaurants/café's.
• Provides different types of discounts such %'s off (e.g. 10% off when you purchase over £10), money off (e.g. £5 off when you purchase over £20).
• Free incentives and treats. (e.g. at a fashion store, free bracelet with every dress purchase or at a restaurant free drink with every main course).
  - This helps towards the promotion of new products and even the clearing of products that are overstocked or not selling well!
• The location service function and geo-fencing function is useful as it only offers services that are local. Users can also filter offers from 30ft to a mile away.
• Open to all businesses, big and small. Corporate and independent. From Tesco's to the local corner shop. (If necessary.)
• Is cheap to manufacture ($99 for a Software Development Kit & App License) requires a Mac (which I own) and a couple of really driven techie people. (Check!)

The Hurdles:

• A new concept can be quite difficult to encourage users to embrace.
• Indirect competitors such as Groupon, Vouchercloud can also be quite large competitors due to their success.
• Would require a lot of exposure and mass public use to get running and off the ground plus to maintain.

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So how would it work?

Head office computers / the marketing team would calculate which stores require the use of the Store Pass app. Notification allowances would then be sent to the store and distributed at the store manager's discretion.

The marketing team would also set the margins for which the offer operates. The time and price limits etc. and how many to send per hour per day.

Users that receive this offer than have a limited amount of time to claim it, they'll be encouraged to browse even if they were initially uninterested. For the user there is no loss, browsing is costless and they may find something they're interested in.

Initially the app would be free as costs could run on profit from store discounts, if the app proves to be popular, a small price can be implemented. The price would be a small amount such as £0.69 - £0.99. People would quickly earn this money back via the discounts therefore wouldn't mind the small cost of maintaining the app.

The idea is fairly straight forward but extremely effective, all faults and worries that have been brought up can also be ironed out and smoothed, with the right amount of work and knowledge.

As expressed in my Survey results, available here and here it would prove useful and an exciting new shopping experience.

The WWWWWH's

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Who?

• Stores that use this can vary from large companies to small companies. It may appeal to retail stores such as: River Island, Dune, Urban Outfitters, H&M, Forever21  - stores that don't usually offer many sales or existing discounts (e.g. Student Discount)
• Consumers that use this app can be anyone of all ages that enjoy shopping and discounts. It's open to anyone with a smart phone and downloadable for no cost at all. However with this kind of demographic, the age range that would be most interested in this app would be between the ages of 21-29+. Individuals in that category have usually secured a small to medium disposable income who would be interested in shopping and saving.

What?

• Utilising this app would be extremely simple, it would just require the installation of a program into head office and store computers for retailers and just a simple app download for users.

When?

• The great thing about this app is that it's time of use is completely controllable, there is no promise of high or low, frequent or seldom discounts. A store can utilise this to their full benefit ensuring a days profit is always secured.
• However due to consumer needs there should be a guaranteed minimum time of discounts e.g. two-three times a week, to keep interest in the app up.

Where?

• Store pass is extremely flexible but for the purposes of trialling it's success I would like to launch it in a city smaller than London. With London hosting the majority of head offices and flagship stores and the highest population in England, it tends to not struggle with huge sales and footfall.
• Store pass would be more directed at second cities such as Birmingham, Manchester, Leeds, Liverpool etc. All the cities named have notable shopping centres and a high population count. Despite all that, some stores still struggle with footfall and completing daily targets. For this reason it'd be much easier to test the effectiveness of store pass.

Why?

• As far as my research can prove, this type of app does not yet exist. There are apps in which you can manually search for discounts but it's far more time consuming than an app where discounts search for you. 
• This method is fast, easy and accurate. Stores can mix up the offers and discounts however they want to suit their company's needs.

How?

• As mentioned and to quite myself, Store Pass "Is cheap to manufacture ($99 for a Software Development Kit & App License) requires a Mac (which I own) and a couple of really driven techie people. (Check!)"