In today’s gadget-friendly world, exploring different restaurants, stores, or clubs has been made simple yet exciting with the emergence of smartphones. Likewise, people expect exclusive deals, cashback, or rewards from platforms for exploring their site. A decade back, coupon cards and flyers were predominantly used by the general masses. However, as time and technology progressed, efficient modes have replaced them substantially. Exclusive reward platforms have become inevitable in recent years.
One such offline discovery and reward platform that has gained the spotlight by crossing the $1 billion annual Gross Merchandise Value (GMV) is Magicpin. As per its name, the platform helps users explore new merchandise and retailers that are near the users’ pin location. Launching a cashback and rewards app like Magicpin comes with innumerable benefits for customers and retailers. With that being said, how does one develop an on-demand Cashback and Social Rewards app? You need answers to numerous questions like,
What are the key features to integrate?
How much does it cost to build the platform?
Who are the top rivals in the sector?
What are the benefits of the platform to the stakeholder ecosystem?
What are the different income-generating sources?
Are you an entrepreneur with the burning desire to know the answers to these questions? Explore more to unravel the mystery and storm into this emerging sector.
Magicpin & Its Massive Rise
Launched in 2015, this Gurugram-based startup has expanded its roots to over 40 cities in India. The startup has gained the investors’ eye, and it is backed by the US-based VC Fund, Lightspeed Venture Partners. Popular brands like Snapchat and OYO have invested in the platform.
The ultimate aim of Magicpin is to help its users discover numerous places like restaurants, pubs, fashion & grocery stores, etc., through its cutting-edge app. The platform’s reward program is enticing, wherein users can earn Magicpin points by sharing pictures of their store bills. This way, Magicpin has established a mark as a Market Intelligence firm as well. The platform collects and analyzes data from different customers.
Currently, the platform houses more than 800,000 retailers, including top-tier brands like Titan, McDonald’s, Shoppers Stop, etc. The platform earns omissions from these retailers for collaborating with potential customers.
With the company planning to expand to over 200 cities by the end of 2021, the company has already surpassed the $1 billion annual GMV (Gross Merchandise Value) in India. Besides the Indian subcontinent, Magicpin is also popular in Southeast Asian cities like Jakarta, where it has crossed $30 million in annual GMV run rate.
Top Rivals To Watch Out For
Now that you have understood the business model of Magicpin, it is time to set foot into action, but just not yet. There are numerous other players like Magicpin who make the market even more competitive. Here are some famous names,
Earny: Earny is a simple yet exciting rewards app that notifies users of the best rates of products by tracking them continuously. Users get the entire price history of the item, enabling them to make informed decisions.
MyPoints: Another reward app that houses top retailers like Target, Walmart, Amazon, eBay, etc., is the MyPoints app. The app provides up to 40% cashback to users and is providing a $10 sign-up bonus as well.
Fetch Rewards: Similar to Magicpin, this platform provides cashback for users who scan and upload their bills to the platform. The platform encompasses a wide range of stores, including grocery stores, liquor stores, convenience stores, etc. The platform is best-known for rewards from grocery shopping stores like Target, Walmart, etc.
Multiple players going neck-to-neck is a healthy sign that the market forecasts positive growth in the upcoming years.
Any platform without critical advantages cannot sustain or succeed in today’s on-demand market. Launching a social reward app comes with lucrative benefits like,
Discovery: Users needn’t spend time surfing on the Internet to know different places. With just a few taps on the app, users can discover different restaurants, grocery stores, and numerous retailers in a single place.
Profits for users: By scanning bills and uploading them on the platform, users earn jaw-dropping rewards and cashback. This way, they can save massively with the on-demand social reward platform.
New customers to merchants: Users invariably visit those stores that they discover on the platform. As a result, merchants can expand their businesses to new customers, enhancing their visibility and profits.
Merchant’s access to real-time analytics: Merchants can identify areas of improvement effortlessly via the real-time analytics feature. This way, they can make informed business decisions.
Features worth-integrating into the Magicpic Clone
Take a look at any successful on-demand app, and you’ll find one dispensable attribute – features. Features are the easiest and one of the most effective ways to create an instant visual appeal among the audience. Here are some cutting-edge features that you do not want to miss out on in your application.
Personalized suggestions: In today’s technologically-driven world, a touch of personalization can go a long way in ensuring and enhancing customer engagement rates. Providing customized recommendations based on users’ previous orders, searches, etc., can do the trick here.
Scan QR codes/bills: An in-built scanner makes it easier for customers to upload their bills. This way, they needn’t have a separate app to scan invoices for uploading.
Cashback tab: Provide a unified dashboard that showcases users’ entire order history and cashback details.
Discovery: The pivotal feature of the entire app is the ‘Discovery’ functionality. Ensure that you include the search and filter option to make it simplified for users to discover those retail stores that match their preferences.
Refer and earn: Leveraging the ‘Word-of-Mouth’ marketing can help you grow a customer base in no time. With a ‘Refer and Earn’ option, you earn valuable customers by paying your existing ones to introduce the app to friends/family in their circle.
Revenue streams to survive, sustain, and succeed
At the end of the day, an entrepreneur benefits different stakeholders and enjoys enticing profits in return. With an app like Magicpin, one can earn revenue from not one but a variety of sources. They include,
Commissions from retailers: Retailers give up a fixed percentage to the social reward platform for enhancing their visibility and targeting new customers.
Ad charges from third-party brands: Third-party brand owners give up ad charges to the platform based on a CPC basis, leading to a win-win situation.
Apart from these predominant ways, one can earn revenue via subscription plans, featured listings, etc.
It’s time to set foot into the market!
Now that all your questions are answered, it is time to roll up your sleeves and initiate your app development. Wait! Don’t you need the assistance of an app development company to transform your ideas into reality? At Appdupe, we have got you covered, just like the way we helped you gain clarity with this blog. We can help you launch a fully-functional Magicpin clone that is budget-friendly, time-conserving, and highly reliable? What are you waiting for? Talk to our experts and emerge as the next big thing today!
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