Digitizing the Loyalty Card
Group 8 - We Are Going to Make Millions!
Executive Summary
Problem: Tired of sifting through your wallet or purse to find your loyalty cards?
Solution: We eliminat...
Market Opportunity
Why this product will work:

•
•
•

•

In the US & UK - there are a multitude of physical
loyalty cards...
Marketing Opportunity
•

•
•

The number of loyalty memberships in the U.S. is 2.1
billion

While the average U.S. househo...
Competitive Environment
●

There are several apps in the marketplace designed to
replace a plastic loyalty card or paper p...
Key Partners
•

Retailers

Including but not limited to the following.
Supermarkets,Clothing and generic retail stores, El...
Customer Segments
Goal of customer segmentation:
Create segmented ads & marketing communications
Develop differentiated cu...
Customer Relationships
•

Build trust through long term, personal relationships with customers.

•

Personalised user expe...
Channels
•
•
•
•
•
•
•
•
•

Customer downloads a free app and/or paid app
Customer will save all loyalty cards within the ...
Cost Structure
Expense

Expense Breakdown

Online Business Costs:

1) Website Design & Development,
2) Monthly Website Hos...
Revenue Streams

•
•
•

Free/Paid Version of the App
In App Advertising
For retailers to sign-up, there are two options

•...
Digitizing the Loyalty Card
Group 8 - We Are Going to Make Millions!
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Loyalt e-v2

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Loyalt e-v2

  1. 1. Digitizing the Loyalty Card Group 8 - We Are Going to Make Millions!
  2. 2. Executive Summary Problem: Tired of sifting through your wallet or purse to find your loyalty cards? Solution: We eliminating the need for physical loyalty cards by providing a digital loyalty app offering rewards points across multiple retailers. Value Proposition: Members who download our mobile application will be able to build up rewards points for their favorite retailers via a scannable mobile application. SIMPLICITY & ORGANIZATION- Organize your loyalty cards in an easy to find mobile format, and signup easily for new retailer loyalty programs (no more paper and pencil applications at the checkout line!), and track the progress of your loyalty points all from one easy to use application. In addition, this app will offer users specific promotions and suggests based on geotargeting. Competition: There are several apps in the marketplace designed to replace a plastic loyalty card or paper punch card, for example, Key Ring or StampMe, but none that offer additional benefits to consumer and business partners. Customer Segments: • • B2C – customer with smartphones comfortable downloading applications, brand loyalists,value-oriented consumers, urbanites B2B – retailers interested in growing loyalty program usage and businesses interested expanding into an engaged loyal audience Costs: App Development, Salary, Marketing and Promotion, Legal, Insurance Revenue Streams: Paid version of the app for consumers and businesses
  3. 3. Market Opportunity Why this product will work: • • • • In the US & UK - there are a multitude of physical loyalty cards, with little to no digital presence. eg: Tesco, Boots, Superdrug, Walmart The average Smartphone User downloads 26 apps In the US, the most popular apps: eBay Mobile (with an estimated 13.2 million users in June); Amazon Mobile (12.1 million); Groupon (11.9 million); Shopkick (6.5 million); LivingSocial (4.4 million); Source: Neilson June 2012 Concerns to be aware of and overcome: Privacy is a concern with the vast majority of app users. 73 percent express concern over personal data collection and 55 percent are wary of sharing information about their location via smartphone apps. Source: Neilson.
  4. 4. Marketing Opportunity • • • The number of loyalty memberships in the U.S. is 2.1 billion While the average U.S. household has enrolled in more than 18 loyalty programs, they are active in only 8.4 85% of loyalty program members haven’t engaged with the program since the they signed up
  5. 5. Competitive Environment ● There are several apps in the marketplace designed to replace a plastic loyalty card or paper punch card, for example, Key Ring or StampMe ● There are also location based apps with advertising opportunity, like Foursquare ● However, there are not apps that combine loyalty and location based advertising to offer consumers and businesses valuable, real time and geographically relevant information
  6. 6. Key Partners • Retailers Including but not limited to the following. Supermarkets,Clothing and generic retail stores, Electronic stores, Restaurants,Hotels • App Developers Maintenance and upgrade of app,monitoring of inside app purchases, liaison with app retailers including Apple App Store and Android Google Play. • Social Media Platforms To allow for valuable Data capturing.Facebook, Twitter, Google+, Foursquare, etc ● Web Designers For in App advertising,Website design, etc • • Project Investors Service Providers Web hosting company, Legal and Accounting representatives
  7. 7. Customer Segments Goal of customer segmentation: Create segmented ads & marketing communications Develop differentiated customer servicing & retention strategies • • Broader Areas • ● B2C - Adults with smartphones, brand loyalists,value-oriented consumers, urbanites B2B - interested in growing loyalty program usage and businesses interested expanding into an engaged loyal audience Specific Segments • • • • Geographical - targeting only European & US markets (separately due to different audience preferences) Age - primarily target both men & women aged 28 to 65 ‘Coupon Collectors’ - those who habitually collect coupons & reward points Regulars - those who shop regularly at specific stores who can persuaded to be rewarded for their loyal behaviour
  8. 8. Customer Relationships • Build trust through long term, personal relationships with customers. • Personalised user experience based on data. • Delight customers with relevant offers. • Surprise customers with new ideas. • Simplifying loyalty and membership schemes aiming to build trust with customer.
  9. 9. Channels • • • • • • • • • Customer downloads a free app and/or paid app Customer will save all loyalty cards within the app. Daily offers on homepage Shop/Scroll through brands through app Location based offers Geofencing & Geotagging In-store only offers to drive footfall. Countdown - push notification feature. Collect and track loyalty points through app.
  10. 10. Cost Structure Expense Expense Breakdown Online Business Costs: 1) Website Design & Development, 2) Monthly Website Hosting 3) Support Services 4) Yearly Domain Fees Legal Compliance 1) Registering business as a legal entity with the taxing authority; 2) Additional licenses/permits; 3) Attorney and accountant services Software Application Costs: 1) Development 2) Maintenance costs Marketing & Promotion Costs Advertising Online Ads- Banners & PPC FUTURE: 1) Salary 2) Payroll expenses 3) Insurance Wages & Insurance
  11. 11. Revenue Streams • • • Free/Paid Version of the App In App Advertising For retailers to sign-up, there are two options • • Free basic version Premium versions which include PUSH notification targeting options, reporting and additional features
  12. 12. Digitizing the Loyalty Card Group 8 - We Are Going to Make Millions!

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