ChaCha Unveils Coupon Service

chacha/mobile coupons

Text and voice-based mobile search service ChaCha has added a coupon service that allows users to get discounts and special offers from local retailers. ChaChaCoupons.com, operating online and via mobile device, launched Monday in Indiana with plans to roll out in the nation's top 20 markets in the next year.

Using ChaChaCoupons.com, people can search for companies and offers by business type, city neighborhood, alphabetically, newest offers, and other criteria. People can print coupons or send them to mobile phones for redemption at checkout via a promotional code. They can also be sent via text message to a ChaCha in-store coupon printer.

The company said it had hundreds of companies signed on for the service at launch across 13 main categories including housing, pets, travel, food and entertainment. The businesses so far include chains such as Bar Louie, Fast Tans, Pet Supplies Plus, Puccini's and Rock Bottom Brewery.

With an audience of more than 9 million online and on mobile, ChaCha CEO Scott A. Jones said the coupon business was a natural next step for the company.

"The logical extension of this is to point them to the best local deals and businesses. We can make that match in a unique way," he said in a statement. "We are about delivering real value today while providing a seamless bridge to the future of mobile coupons, which is coming very quickly."

ChaCha's free and ad-supported mobile search service uses human "guides" to answer questions, and promises answers within minutes. Advertisers such as Paramount, Coca-Cola and McDonald's have run text-based ad campaigns using on ChaCha aimed at the service's predominantly under-25 audience.

The coupon business generally has enjoyed a revival in the last year as cash-strapped consumers look for more ways to reduce household budgets. Ten million digital coupons -- both online and via mobile --were redeemed in the first six months of 2009 -- up 25% from a year ago, according to coupon-processing service Inmar. But they still only make up less than half of all coupons distributed.

Among other recent initiatives, JCPenney two weeks ago began testing a new system at Houston area stores that lets customers scan mobile coupons directly from their phones at checkout.

Outdated point-of-sale (POS) hardware and software and reluctance by company CIOs, however, continue to keep some brands from offering mobile coupons, according to a panel of mobile experts at the OMMA Global conference last month.

ChaChaCoupons.com has also been linked to the company's text VIP lists, allowing users to sign up for cell phone offers and news from their favorite businesses. ChaCha said it might also add other features in the coming months, such as letting people get alerts about new offers in their favorite categories.

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