A year back when I had read the news that Foursquare has tied up with Café Coffee Day in Bangalore, I was really excited and truly believed that the move was really cool for both the businesses. Foursquare expanding in India and Café Coffee Day giving a small reason to rejoice more coffee in its hub. After few months I stopped using Foursquare for my own reasons and the hype of checking and getting a 10% discount on a coffee fizzed out pretty soon. In recent news Café Coffee Day has now tied up with MojoStreet, an Indian location based app to give the same experience. The app claims to have a user base of 30,000 users with 40% active users on a fortnightly basis but the big question is will the partnership work this time?
So what is the new deal?
The latest tie up of Café Coffee Day (CCD) with MojoStreet is in the similar lines as it had with Foursquare but on a bigger scale. The partnership enables check-in based offers at 1,174 CCD outlets across India. Not a bad way to start so if you want to avail this offer then you need to simply download the Mojostreet app on your smartphone and then check-in at the CCD outlets. Once you are done with the check-in thing, the offer is delivered right on your mobile screen and you can avail it from the store right away. It is that easy! But finding which outlets the partnership is on is a job I suppose is left on the user to find out or may be the list will be revealed soon. I have checked the Mojostreet blog and the CCD Facebook page but with no results.
Will the deal work?
Last year I had met the Founder of Quantama, Preetham VV at Bangalore that works on the same model but it is about individual tagging of places rather than GPS locations. Preetham told me that the market is still not ready for such models and he himself is having a tough time in educating the market and finding the early adopters. In fact when Foursquare tied the deal with CCD then expectations were high but the hype fizzed out soon. I am not saying that the deal will not work and neither am I doubting the capabilities of Mojostreet that claims to have close to 200 merchant tie-ups in 1250 locations across the cities of Hyderabad, Bangalore, Noida, Gurgaon and Delhi. Apart from this there is one more question that lingers in the mind is – how co-operative will the CCD store guys be? Will they be educated? Kalyan Manyam, Co-founder at IndiaRocks which introduced Mojostreet said in an interview to MediaNama that they have tested the functionality and even if the staff is not aware the offer will work since the promo code is already integrated with CCD’s billing system. This is a smart move to reduce the problems at the counters between store people and users.
So does location based marketing still have a market?
So does the LBS business model still have a market in India with the 10% discount and free WIFI? A question that has been lasting with me for a while now.
If you ask this question to any geek, he will go crazy explaining how LBS is cool and how businesses can make money out of it. Foursquare the leading name in this section is also facing growth problems in the US. My personal experience says that most of the people have no clue with those silly check-ins other than sharing them on Twitter and spamming timelines. A thought that was also echoed by Mukund Mohan, Founder at Jivity. He told me in our last interview with him during the #NASSCOMPC that they have an inbuilt LBS app but it is being liked by people because they are giving incentive and more than that 10% discount.
Others may debate that LBS gives a gamification fun, true but a business model can’t only survive on just being mere Mayors of a place that you only created by doing a check-in.
Yes I am not a big fan of LBS but saying that if you could get me more than just a discount or a free wifi I will be really keen to listen. Until then it doesn’t really excite me and all my CCD lovers next time if you walk into a CCD, try to see if they have a sticker on the wall saying to check-in. Who knows you might just get a discount!