Dec 07, 2010 09:00 ET
New Offer Model Allows Consumers to Save Money via Automatic Rebates Applied Directly to Their Credit Card, While Enabling Merchants to Target People Based on Actual Spending History
SUNNYVALE, CA--(Marketwire - December 7, 2010) - Offermatic today introduces a new model for deals and offers that profoundly changes how consumers save money, and how merchants acquire and retain customers.
For consumers, Offermatic provides a simple and powerful way to save money automatically through their existing credit or debit card -- without the need for coupons, codes, and vouchers. By signing up for the free service online and linking one or more cards, Offermatic anonymously and securely reviews purchase history and identifies highly targeted and relevant money saving offers from merchants. Offers are between $5 and $100, and rebates are applied directly to the user's debit or credit card after a purchase is made. No coupons needed.
For merchants, better targeting equals better results. Offermatic is the first company to enable permission-based targeting of consumers based on their actual spending history -- the "spending graph." Rather than broad targeting of promotional offers, merchants can now use precision hyper-targeting, improving conversion rates by 10X - 100X over existing online or offline targeting methods. The accuracy of this new approach eliminates waste in marketing spend and allows the merchant to shift spend from marketing and advertising to the actual customer offer or deal.
Offermatic's tests with top retailers yielded a 14.5% conversion rate on offers made to customers -- an exponential improvement over average conversion rate of .5% - 1% via other channels. These results indicate that consumers prefer to receive automatic rebate offers that are highly targeted and personalized, without the hassle of coupons, codes, vouchers, and offers from daily deal sites that are neither highly targeted nor relevant.
The future of marketing is all about data. By enabling precise targeting using customers' spending graph, Offermatic is ushering in a new era of true 1 to 1 marketing. For consumers, Offermatic enables a frictionless savings model that delivers rebates directly to credit or debit cards, and filters offers to ensure relevance. Offermatic's innovative model has the potential to disrupt how promotional marketing is done.
"We're solving a real consumer problem by taking the pain out of saving money," said Faisal Qureshi, founder and CEO, Offermatic. "For retail merchants, we flip mass marketing on its head with a business model where marketing and advertising actually help the consumer. Our approach ensures that merchants and customers both win -- merchants acquire new profitable customers -- not just new customers -- and customers automatically save money just by using their credit or debit card. It's better for merchants, and better for consumers."
For more information, visit www.offermatic.com.
About OffermaticOffermatic brings to market a new model that changes how consumers save money, and how merchants acquire and retain customers. For consumers, Offermatic provides a simple and powerful way to save money automatically through their existing credit or debit card -- without the need for coupons, codes, and vouchers. For merchants, Offermatic enables permission-based targeting of consumers based on their actual spending history -- the "spending graph." Offermatic is founded by experienced Silicon Valley Internet entrepreneurs, and is seed funded by Kleiner Perkins Caulfield & Byers, Bessemer Venture Partners, and private angel investors.
