Mobile Embrace Strategic Investment In Clipp Delivering Strong Organic Growth
Clipp, the iOS and Android app that allows customers to pay their bill at 600 venues with their mobile phone, has seen a 42 per cent increase in transactional revenue since June 2015.
Clipp is now compatible across 16 of the major hospitality POS (Point-of-Sale) systems throughout Australia with four additional POS systems to be added by early 2016. Clipp’s popularity continues to grow with a 160 per cent increase in user numbers in a five-month period driven primarily by word of mouth.
Also, following Mobile Embrace’s investment, Clipp entered into a three-month development phase to create an in-app deals feature, DASH (see ASX announcement 8 September 2015). DASH is dynamic pricing that enables venues to replicate what the hotel industry has successfully done when it alters pricing based on a particular day and time of the week. Consumers can benefit by saving up to 40 per cent off their entire bill. The new function, as well as the re-design of the Clipp app, launched at the beginning of September, is now generating up to 150% increase in consumer spend through Clipp, serving the hospitality industry in the same manner as hotels use last minute dynamic pricing based on demand.
Clipp co-founder, Greg Taylor, said: “Our introduction of dynamic pricing has been a game-changer in the hospitality sector, and through the backing of Mobile Embrace, we have been able to expand Clipp’s capabilities. The proprietary technology is also benefiting venues by strengthening customer service and contributing to improved operational efficiencies in venues where Clipp is offered. Dynamic pricing is now live in over 100 of Clipp’s 600 venues.
“Clipp now offers more than 20,000 deals each week delivering an average saving of 30 per cent to consumers. Our focus now is to leverage Mobile Embrace’s extensive marketing capabilities to drive targeted App installs to a large consumer base.”
Mobile Embrace chief executive officer Chris Thorpe added: “Clipp has proven to be a prudent investment for Mobile Embrace and the business continues to grow and develop as a result of our investment and management support. Our broader businesses are now working actively with the Clipp team to start driving customer acquisition at scale and monetise other opportunities that are yet to be exploited.
“We are confident that there is significant shareholder value to be unlocked and look forward to updating shareholders on Clipp’s growth in the coming months. In addition, we will also be announcing operational developments occurring across the group that are driving material revenue growth.”
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