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Subject: RE: UKNM: SMS Location based Sales (long)
From: Kyle MacRae
Date: Mon, 25 Dec 2000 13:59:37 GMT

Yep, ZagMe. Here's the press release...

"ZagMe, a new electronic shopping buddy, conducted the research to mark the
launch of its revolutionary shopping service which negotiates exclusive
offers from major retailers and sends (�Zags�) text messages, using SMS
technology, straight to shoppers� mobile phones.

>From Saturday November 11, shoppers at Lakeside Shopping Centre will be the
first in the world to get messages on their mobiles alerting them to special
time-limited offers in stores in the mall.

This location sensitive technology is expected to become a massive new
industry, worth US$29 billion within five years.

More than 100 retailers at Lakeside have already signed-up to the new
service including major chains such as Debenhams, Bentalls, Woolworths, Top
Shop, Dixons, Nike, Body Shop, Super Drug, Gap, ETAM, USC, Kookai, Lush,
KFC, Pizza Hut, Costa Coffee, Virgin, Carphone Warehouse, Electronics
Boutique, Travel Choice and Warner Bros Cinemas.

- more -
Page 2/

According to ZagMe�s research, women are the biggest victims when it comes
to losing out in the stores with almost half throwing away up to �20 on each
impulse buy � with only one quarter of men (25 per cent) falling prey to the
same temptation.

In the regions, the survey shows cash flash Midlanders waste more money than
the rest of the UK on items they could have bought cheaper elsewhere.
Almost a quarter (23 per cent) waste up to �100 compared to only 11 per cent
of Southerners and seven per cent of Londoners.

ZagMe CEO Bill Green said, �Britons are renowned for their love of a
bargain, but our research has shown they need a helping hand in finding the
best deals. ZagMe�s exclusive personal offers fulfill this need as they

�Consumers opt-in and control every aspect of the service, even to the point
of being able to bar messages from individual retailers. In the future our
service will even be able to identify exactly where shoppers are in the UK
and �Zag� them with exclusive deals the moment they pass their favourite

No more than a couple of text messages an hour are sent to consumers and
only when they activate the system. Plus, ZagMe is completely free, so
shoppers don�t have to spend any money unless they choose to and they
actually get paid to receive messages.

ZagMe is the beginning of a new age in shopping technology and Lakeside will
be the first in the world to observe and benefit from this unique service.

Richard Belt, General Manager of Lakeside Shopping Centre, said �Lakeside is
delighted to be trialling this new and innovative service which will give
our shoppers exclusive opportunities to take part in offers and promotions
for products they are interested in, but they might not normally be aware
- more -
Page 3/

To incentivise shoppers to sign up, consumers receive �5 in �Zag Points� on
registering for the service and an additional five Zag Points for every
message they receive. Zag Points can be exchanged for mobile phone or store

New Look Marketing Manager Lisa Booth said: �We are really excited about
SpotFlash - it means we can target potential customers with special offers
when they�re in the immediate vicinity of our stores. We can also send
different messages to different types of consumers, so we�re able to
precisely target discrete audiences with unique offers. We�re confident
this combination of factors will significantly increase impulse sales.�

ZagMe Service Highlights

� Shoppers can sign up for ZagMe in a number of ways:
i. via the Internet at www.zagme.com;
ii. by calling 08700 40 30 20;
iii. at the ZagMe booth at Lakeside Shopping Centre; or,
iv. by text messaging ZagMe on 0774 07 07 770 with �Call Me� and ZagMe will
call back.
� Once customers have registered, next time they�re in Lakeside (a ZagZone)
they activate ZagMe and will be �Zagged� special offers. To activate,
shoppers simply Zag a text message to 0774 07 07 770 telling ZagMe where
they are and for how long (e.g. Lak4).
� The messages are sent in text - which almost any mobile phone is capable
of receiving - and take into account the shopping habits and preferences of
the shopper, which have been inputted on registering. Shoppers can opt out
of certain types of messages from certain retailers as they choose.
� On receipt of a message, the phone emits a short alert sound and asks the
recipient if they would like to read it. On affirmation, the phone displays
the message. Phones do not need to be adapted or specially programmed to
receive text messages.
� To collect their special offer, shoppers simply take their phone (with the
message displayed on the screen) into the relevant store and start saving
� SMS (short message service) which is �low tech� and widely available is
currently the technology being used to deliver the service. In the long
term ZagMe will adopt new technologies as they emerge, e.g. WAP.
� Customers have to be at least 16 years of age to become a member.
� The lucky first 10,000 to register automatically receive �5 in ZagPoints
(ZagPoints can be exchanged for pre-pay mobile phone or store vouchers). If
customers tell a friend who signs up for ZagMe they receive another �5 in
ZagPoints. Then, every time they receive a message they�re adding another
5p in ZagPoints to their account.

Kyle MacRae

e: kyleatscunnered [dot] com
t: 0141 649 0835
m: 07941 179107
f: 07092 216363
a: macraekyle
w: www.scunnered.com

> I know www.zagme.com intended to do this but don't know if they've managed
> to actually set up the service yet.
> Helen

> Hi folks.
> Been racking me alcohol sodden brains and come to the conclusion that the
> collective memory is bound to be better than mine alone.
> I remember seeing, on the news, I think, an article about a company which
> was using SMS to sell products to folk in a shopping centre. I think what
> they were doing was sending promotions etc to individuals, from
> the shops in
> the centre, based on the phone owners' location????? Didn't
> think this was
> feasible yet, but any way, can't remember the name of the service. Can
> anyone throw any light on this mystery?
> Thanks and Happy Chrimbo to ya'll
> Tim

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  RE: UKNM: SMS Location based Sales, Helen Barrett

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