Daily Dose of iQ: Cash Dash App Lets Retailers Lure Customers via Geolocation

We’ve blogged about price comparison sites/apps in the past (e.g. Greentoe this summer; Amazon’s Price Check app was a big one in 2011).

Cash Dash's goal is to help retailers steal shoppers away from the competition.

Today, WIRED wrote about "Cash Dash," a new app from Wanderful Media that puts a different spin on price comparisons and discounts. Instead of users having to search what they want to buy and from where, the app allows retailers to push price comparisons/discounts to users phones based on their location: namely, when they're shopping at competitors' stores.

“When you’re at Walmart, Target could offer you $25 to visit one of its stores within the next 24 hours," explained WIRED's Issie Lapowsky. "Yes, the goal is to help retailers steal shoppers away from the competition.”

For me, the Target store in the example would have to be in close proximity for it to be worth my time/effort, but for the right price, one could be persuaded to make the trip.

If the Target is on my way home from the Walmart I'm currently in, I'd be more likely to stop by on my way home.

I think the discount would also need to be very generic, as the app currently has no idea why the consumer is visiting the store. If I were to get an offer for a specific item that had no relevance to me visiting the store I was at –- this could be a deterrent to actually using the app. It would feel “spammy”.

I don’t know if this is possible or not, but something that could be beneficial would be receiving offers for stores that are on my route home from my current location. For example, if I were at Walmart, and on my route home there was a Target and I received an offer to save $25 off of my $100 purchase, I'd be more likely to make the stop by on my way home as opposed to going out of my way to visit Target.

According to Lapowsky, retailers are clamoring to get on board with Cash Dash: "Already, some 50 retailers, from Walgreens to Macy’s, are paying Find&Save (the Wanderful app upon which retailers send users Cash Dash notifications) to send these notifications. The timing is obviously perfect: The app went live 3 weeks ago – a month before Black Friday in the U.S.

As a retailer, I would definitely join Cash Dash, especially if my local competitors were on board.

As a retailer, I would definitely be inclined to join the Cash Dash, especially if my local competitors were on board. At the very least, I would try it out for a period of time and determine the cost/benefit of using it. The article mentions large chain retailers using the application, however I wonder what this would do for smaller retailers who are trying to compete with them. I feel as though the smaller retailers would not necessarily be able to afford to offer significant discounts, yet this could expose them to a new customer base.

“Cash Dash has completely changed how users feel about allowing (Find&Save) to track their location," wrote Lapowsky. "Before (Cash Dash) launched, only 20 percent of users opted into geolocation. Afterward, 80 percent did.”

People are seeking mobile discounts and coupons more and more. Cash Dash adoption is evidence of that.

This tells me people are looking for mobile discounts and coupons more and more, and if the offer is targeted enough, users will opt into geolocation to obtain that offer.

And because users are redeeming these offers, the retailers are hopping aboard.