Cardagin: Local Mobile Rewards
Cardagin provides a mobile loyalty point program and coupons service to local businesses. The new startup in the increasingly competitive space of consumer/merchant apps for smart phones has received positive reviews and is reaching an inflection point: decisions made at this stage can be the difference between a national presence and an also-ran. The CEO needs to demonstrate the value of this service in compelling ways to retailers and consumers. As an intermediary, Cardagin needs to ensure consistent usage by consumers and for retailers to provide attractive offers to their consumers. Building a nationwide network of consumers and retailers itself can be critical. The case provides students an opportunity to analyze a new digital venture, explore expansion options, and evaluate the challenges in working with many small businesses, each with its own idiosyncrasies.