We believe that Passbook will make the coupon business even better.
- Makes coupons less messy, more fun, so customers will use more of them.
- Smartphone users are upscale users. They haven't traditionally been big users of coupons in the past, now they will be, which means a broader audience and higher-value customers for retailers, and increased opportunities for coupon firms.
- Avoids the coupon-clipper mentality, leads to long term customer relationships. With electronic coupons, you can not only get upscale clients, but the consumer psychology is different. Just like regular coupons, you are "getting people's attention" with a deep discount. But the format of the electronic coupon allows you to convert that discount coupon into something more lasting.
Look for announcements from us in the next few days, to show how coupons can start as mass-distributed items, but then be converted automatically into higher value customer- relationship-builders.