Buytopia continues to be ambitious as they aggressively pursue growth within the Deals & Coupons industry. They of course operate Buytopia, the Daily Deal provider, they operate an online restaurant ordering service and now SnapSaves, a free couponing and cash back platform available for iOS and Android, which offers instant cash back on popular grocery products.
We have mentioned it before that the large daily deal companies need to mature into consumer saving portals that offer far beyond just local offers. Once a consumer visits a deal provider, they are interested in deals of any kind, of every kind. Providing consumers with a well segmented choice makes sense and leverages the large database of consumers acquired. Through Snapsaves, Buytopia is now leveraging their nearly 2.3 million Canadian consumers across the country and providing them with further savings. In turn, Snapsaves generates a marketing commission or fee from the CPG brand they are working with.
SnapSaves works by having shoppers snap a picture of their receipt after purchasing groceries at any supermarket or retailer. Consumers will then receive a cash back if the receipt includes at least one of the daily offers from Snapsaves. Current offers include cash back on brand name items such as Coca Cola, Lysol, Red Bull, Gay Lea, and Dr. Oetker.
“We’re working with more than a dozen leading consumer packaged goods companies to directly engage our 2.3 million Canadian shoppers to drive sales volume, velocity, awareness and analytics,” said Anatoliy Melnichuk, cofounder of SnapSaves and Buytopia.
So who does Snapsaves compete with in Canada. Well, Checkout51 comes to mind as the only other grocery “take a picture of my receipt and get cash back” service in Canada. Others are on the way, but Checkout51 is the leader in this type of couponing structure. With either app, consumers can also use a cash back credit card from Master Card or VISA and increase the amount of savings from their Grocery purchases.
With Snapsaves, Buytopia now enters the Digital Grocery Couponing sector dominated by Websaver.ca, Save.ca , Gocoupons and Procter & Gamble coupons. However, Snapsaves and Checkout51 are the only 2 mobile coupon apps of their kind in Canada..so far. Traction in this industry is NOT easy.
We anticipate that other companies will launch similar mobile applications over the next year or two in Canada, especially if Checkout 51 or Snapsaves continue to prosper.
- Perhaps Transcontinental, especially in Quebec,given their relationships with CPG brands and the Flyers business
- Perhaps eBates; the coupon Cash Back leader in North America and Canada, especially given their acquisition of PushPins earlier in 2013 (Pushpins is a Grocery coupon app) will eBates bring that to Canada?
- Perhaps Torstar with their Wagjag brand already involved in Grocery deals and their Save.ca brand being a leading digital couponing site for grocery coupons.
- Perhaps even Websaver.ca which already has years of experience and is a leader in the Digital Grocery coupons industry
Digital Grocery Coupons, Digital Flyer applications and now with mobile Cash back on Groceries; The Grocery Couponing sector is finally maturing in Canada. More to come.
PS. Have we mentioned that the Grocery couponing industry in Canada is NOT easy!