A Vancouver-based company has come out with a new daily deal model that it claims is the antithesis of Groupon and its many clones.
TikTok launched in Vancouver in April, in Calgary in May, and has plans to expand across North America.
Andrew Sharpe, founding partner at Brandspank, the agency that helped create the brand, the characters, app and web development, said it’s like an electronic version of direct mail. Unlike Groupon and its competitors that charge businesses on their discounted deals, with TikTok businesses can set up the application for free and push out offers to up to a thousand people at a time.
Consumers receive the offer on their iPhone or Android and have anywhere from an hour to 24 hours to redeem it from the retailer. Sharpe said the business model kicks in when retailers subscribe and pay for the next levels, which offer more targeted features and a bigger reach.
To drive downloads, Brandspank launched a virtual sampling out-of-home campaign where consumers could pick up a free drink, taco or A&W burger if they downloaded the app and entered a promo code.
Brandspank also created an experiential marketing campaign called “Random Acts of Freeness” in which mascots turned up at various events and handed out free product. A campaign targeting businesses launched with the tagline “Share your deals not your profits.”
“The biggest flaw of Groupon from the business side is how much money you have to give away,” said Sharpe. “And, you are creating a coupon clipper? This is value-added versus discount; it’s not about discounting something at 75% off, it’s about getting something else on top.”
Sharpe said it’s a bit like getting a free food sample at Costco and then buying the product. “Whereas Groupon is a transaction, you go, you purchase something you get a voucher, this is about immersing yourself in the brand.”
Because of the limited time offers, Sharpe believes that TikTok will appeal most to a younger, urban demographic aged 19-to-40 with a 60/40 female/male skew.
“Ten years ago we called them yuppies, people who want to be spontaneous and want to be able to take advantage of an opportunity, who live in the now.”
Sharpe said the plan is to release the application in the U.S. next and then follow the interest. “We’re getting hits in markets that we’re not even in yet, we want to see where the attention is and follow it,” he said.
