With the rising competition, what does business owner have to do to retain existing customers whilst trying to get new customers? Rewarding customers for staying loyal to your business is certainly a solution. But coupons, cards and other such print form of reward system does not seem to be working for many merchants. MoMark, a mobile marketing solution company, claims to allow customers to earn and redeem points with the ease of a single tap on their smartphones.
Founded in 2012, MoMark claims to build customer profiles, based on behavior, location and spending. The company is headquartered in Noida, Uttar Pradesh in India. MoMark company provides Business Intelligence Solutions for the retail and telecom sectors. It also provides geo location based search and discovery services for smartphone users.
The MoMark Rewards program integrates GPS enabled search, loyalty scheme, rewards program and deal finder into a single interface in the form of an app. The mobile based app allows users to read reviews, search for merchants, check the menu, see their current distance from the establishment, share deals with friends on facebook and twitter etc.
The app allows users to earn reward points from merchants. During the ordering time, the customer can join a merchants reward program just by quoting a phone number says MoMark. This does not require any forms to be filled and users are allowed to join multiple reward programs of their choice at once. Points can be redeemed with a tap of the phone . Points can also be gifted to friends.
Sanjay Sehgal, CEO of MoMark, says ““We noticed a huge gap in the way the current websites and social apps interact. There are deal and coupon sites, map apps, review sites, social media platforms to share them etc. But it is insane to expect a user to integrate all the data they throw up. Momark Rewards brings it all together on a mobile app, so you will never need a laptop to shop.”
Momark Rewards boasts a completely mobile based with no requirement of cards, forms or other print. Intensive training is not required to operate the program either.
However, the company faces some challenges with the Indian market. The usage of loyalty cards and rewards in India is relatively low. The Indian retail industry is estimated to be $450 Bn out of which only $30 Bn comprises the organized sector. In general, a lot of average Indian customers prefer to walk into a store which offers large discounts on its products, rather than accumulate points and redeem them later. Payback, a loyalty card program faced similar problems in India.
Some of the competitors operating in this field are MintM and Zapify. MintM offers a shopping/reward app and a digital wallet for users in India. The reward points are called Mints. The collected mints can be converted to gift cards and coupons. Users also get points for referring friends to the app or checking in at locations.
LTP View: MoMark may be heading in the right direction by targeting small and medium businesses rather than the traditional big retailers. The success of the app may depend on MoMarks ability to convince a larger section of SMBs to integrate their systems with the app. The highly fragmented Indian retail sector and the nuances of building a product company in India are some the biggest challenges MoMark may face.