Mobile marketing has never played a more important role for retailers, influencing nearly half of all consumer spending or $2 trillion at retail. However, it’s not a level playing field; the consumer’s appetite for discounts coupled with digital marketing’s overwhelming breadth of options, inherent complexities and limited attribution, have left a majority of today’s 26 million small businesses struggling. A problem so great, that for the first time in history, small business in America is in decline.
LuckyDiem is fixing this problem by integrating behavioral economics’ endowment effect to change the consumer’s perceived value of discounts and by mitigating the cost and complexities of digital marketing. Our app offers users an addictively fun way to earn discounts, rewards, and loyalty benefits, and offers businesses an easy and effective solution to manage end-to-end marketing, from search to promotions to loyalty to advocacy. Businesses only pay a commission on completed purchases without any additional hardware, software or training required. The lack of friction in implementing our solution is key to our sales strategy and will allow us to efficiently grow the 10,000 businesses already on our platform.
What makes us different
Endowment Effect – Endowment effect falls under behavioral economics and includes the study of how consumers predictably make irrational decisions. LuckyDiem’s pilots have proven that it can successfully integrate the endowment effect into its promotions, reducing marketing’s reliance on deep discounting to drive sales.
Simple, Turnkey Solution – Small businesses (SMB) are overwhelmed by the sheer number of digital marketing service providers available to them. They do not have the time or money to learn, deploy and operate multiple systems. SMBs want a simple integrated solution, and with more than two-thirds of them not using an outside marketing service provider,2 digital marketing represents a huge non-consumption market.
Online-to-Offline (O2O) Attribution – If there's a Holy Grail of marketing, it's an answer to this basic question: Did that ad work? Leveraging card-linked offer technology, LuckyDiem is the first platform to enable retailers to run multiple online promotions and only pay a commission on completed purchases—without any additional hardware, software or training.
True Customer Value – LuckyDiem’s integration of closed loop sales and social media, takes CRM to a new level. We drive customer advocacy and accurately connect a customer’s social influence to sales.
Gamification – Foursquare was once the fastest growing startup in the US. Users loved its gamification features—businesses did not. The problem was that check-ins and mayorships had no correlation to sales. LuckyDiem’s ability to track purchases solves this problem and adds other gaming mechanics to create a dopamine loop for users.
AI – LuckyDiem’s app collects relevant first-person data and market research in a way that is fun and unobtrusive. We use this data to serve promotions more intelligently such as dynamically altering “payout” algorithms and selecting incentives most relevant to the user.
AR – LuckyDiem is integrating AR and leveraging the latest iOS features into its endowment effect process to increase retail engagement.