Cardagin: Local Mobile Rewards
14 Pages Posted: 30 May 2017
Abstract
Cardagin, a new start-up in the increasingly competitive space of consumer/merchant apps for smartphones, is reaching an inflection point: decisions it makes at this stage can determine whether it becomes a national presence or an also-ran. The CEO needs to demonstrate the value of Cardagin's service to retailers and consumers in compelling ways. The case provides students an opportunity to analyze a new digital venture, explore expansion options, and evaluate the challenges in working with many small businesses, each with its own idiosyncrasies.
Excerpt
UVA-M-0825
Rev. Jun. 3, 2014
Cardagin: Local Mobile Rewards
When you visit your favorite restaurant, the manager sometimes offers you a free dessert. The restaurant manager could provide such recognition for about 100 of their best customers, but what about the next 1,000 who are also regulars?
—Rob Masri
On a still-nippy February afternoon, Rob Masri, CEO of Cardagin, a mobile marketing network based in Charlottesville, Virginia, scanned his iPhone app as he entered Eppie's, a local restaurant. Through the Cardagin app, Eppie's, an early member of the Cardagin network, could track a user's visits and offer personalized coupons on the spot. That day, Masri was able to redeem a 90% discount for our lunch, over which he spoke passionately about Cardagin's fast progress, the decisions facing him, and the broader trends in mobile marketing.
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Keywords: network effects, merchant, coupon, mobile, redemption, loyalty
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