Samsung's offer of loyalty rewards to users of its Ch@t application, announced last week, might not have the kind of influence the company hoped for, say analysts.
While rewards will probably encourage users to use the Ch@t app more, it will not persuade consumers to choose Samsung over other handsets, says Ryan Smit, digital consumer unit head at BMI-TechKnowledge.
Smit believes that cross platform instant messaging (IM) platforms, such as Whatsapp, will ultimately secure the most success.
Strategy Worx MD Steven Ambrose agrees that being compatible across all platforms is key to the success of chat apps. He adds that the Ch@t app is not sufficiently differentiated to stand out. “The Java base also makes it feel a little low-tech compared to the competition,” says Ambrose.
Smit points out that IM applications have been playing a very big role in the smartphone market and that one of the main reasons for BlackBerry's recent popularity has been the appeal of BlackBerry Messenger.
“As the market in SA is very price-sensitive, the appeal of what was initially described as 'free SMSing' is very attractive to consumers,” says Smit.
According to Brett Loubser, B2C apps development lead at Samsung SA, Ch@t is free, and only data used is charged for.
The company says points earned by using the application can be redeemed in-app for airtime. Users of all handsets can earn points, but Samsung users earn twice the points of non-Samsung users.
The Ch@t app is supported on Android, Java and BlackBerry devices. The Apple version is under development and is expected to be available within the next six weeks.
Ch@t can be downloaded here.
Share