Digital Conference San Francisco 2012

Mobile Startup Endorse Partners with Kraft to Launch Facebook Deals Service

Startup Adds New Social Features to Close Gap Between Liking and Buying

By Published on .

Mobile-deals startup Endorse today announced a partnership with Kraft that will allow brands to send deals directly to consumers in social networks, as well as allow consumers to share those deals with each other.

The partnership, announced today at Ad Age 's Digital Conference in San Francisco, is a first for Endorse, is launching its "Social Offers" feature with Kraft's Planter's brand.

Endorse recently caught our attention for its take on how to collect consumer purchase data. The company pays users to scan their receipts and then uses that information to send them relevant deals -- kind of like a merchant loyalty card, except spanning many merchants.

The social-offers feature helps brands connect the dots between Facebook fans and actual purchases while giving customers steep discounts.

The product comes in two forms: peer-to-peer and brand-to-consumer. The peer-to-peer sharing is simple: Any Endorse user that shares a deal to Facebook will instantly see the discount jump from 20% to 50% off. The deal will then appear on that user's wall for friends to claim. When they do, the deal will appear in the app's "shared with you" section. Those users will then have the same option on the initial deal -- share and get an additional 30% off.

A brand can allocate a certain amount of money it wants to commit, and Endorse will close the deal when it hits that point. "The reason Endorse can do this is because we control the entire process, from creation to redemption. it can't be copied or go rogue," said CEO Steven Carpenter.

For the brand-to-consumer offers, which is launching today with Planters, the brand can post a deal to fans of its Facebook page (which, in Mr. Peanut's case, is almost half a million), driving fans to download the app and claim the deal. While this clearly helps with Endorse's user adoption, there's an inherent benefit to brand marketers, who will be able to see which fans are also customers.

"The social offer is designed to reward brand advocates for sharing their favorite offers with their friends and to enable brands to share product-level offers to their Facebook followers that can be redeemed wherever their products are sold," Carpenter said.

For Planters, the initiative was specifically meant to reach the "active adult audience" through social and mobile channels, said Kraft Brand Manager Jon Hall in an email.

Down the road, a natural extension of this will be to cut out the middle step and allow brands to send offers directly to fans that use the Endorse app, closing the loop between and "liking" on Facebook and buying in the real world.

Most Popular