UPDATED 14:37 EDT / DECEMBER 21 2010

CardStar CEO on Customer Loyalty, Local Ads and Why Groupon Was Right to Turn Down Google

My friend Trish and I have been going back and forth all month about our holiday shopping plans, our lack of time to head to stores, and the usefulness of online shopping.  One thing that continually came up in conversation was Groupon, where unique gifts can be given to friends and family, presented as experiences, that we shoppers got at a discount.

All fine and well, until the plan backfired, with a lack of certain deals in desired areas, and a growing urge to head to the mall despite the closing in on December 25th.  Often times the best intentions for practical shopping are set aside for immediacy, which is still a major benefit of local retailers and businesses.  They’re right around the corner, and the same networks that are enabling us to shop online are also working to make our physical shopping excursions more efficient as well.

CardStar knows all about this, with its mobile app loyalty program that keeps digital versions of your rewards cards on hand.  From the drug store to the grocery store, bookstores and more, CardStar keeps your loyalty cards off your key ring and in your pocket.  And with tight budgets during the holiday season, a tool like CardStar can help you track, manage and earn more discounts at various retailers.

It’s a different kind of local deals service, but one that’s just as dedicated to enabling a streamlined system around individuals and their shopping behavior and preferences.  Building up relationships between retailers and customers, CardStar is also looking to grow a local marketing channel for even more efficiency surrounding real-world consumerism.  In this way, CardStar becomes even more of a tool to retailers, presenting a way to initiate loyalty programs with their customers.

The premise of CardStar is different from Groupon’s, so they may not be the alternative Google’s seeking out since failing to woo Groupon with an enticing acquisition offer.  But CardStar is amongst the many customer/brand management tools that are gaining traction, partially as a result of Groupon’s localized success.  Proving that consumers can be given more power and control around their purchases, companies like CardStar are amped about developing this direct channel between brands and their buyers.

The industry is still growing, and early success doesn’t always signal long-term mastery.  So perhaps it’s a good idea to let this space continue to find itself, especially as it aims at closing the gap between local businesses and customers.

“It probably was a wise move for Groupon to decline Google’s offer considering the size of the deal could drum up issues with the FTC, which has happened with Google’s past larger deals, and take Groupon out of commission while in theory their competitors could catch up to them,” Andy Miller, CEO of CardStar, explains. “Groupon can now use this time to extend their features and offerings, which we’ve seen them do, and become of the largest ad networks in the world.”


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