Michelle Roberts - Advanced Search Summit Napa 2019
Wynbox presentation syd start - may 2013
1.
2. Gamification is growing
Discounting is killing retail
PROBLEM
“Gamification will be used by 70% of the
global 2000 by 2015” - Gartner 2011
“The current retail culture of constant discounting... is
unsustainable and likely to lead to increasing numbers of
insolvencies.” - KPMG 2012
10. Simple
Unique
Disruptive
Social
Viral
Defensible
Global
SUMMARY
Editor's Notes
This may appear to be a list of the most successful retail brands in Australia. I hate shock you, but in actual fact each of these brands are in pretty serious financial trouble, and its representative of a global retail meltdown. The first 5 brands on this list have suffered significant profit slumps with Harvey Norman, David Jones and Target all reporting a 40% drop in profit... That’s right - almost half of their profit (equating to hundreds of millions of dollars) has been wiped off their bottom line in one year! Billabong is in yet another trading halt as it struggles to refinance and a number of established fashion brands have shut down including Lisa Ho recently going into administration just this month. Myer Chief, Bernie Brookes, recently described the retail market as a “tale of woes” and some of the worst retail conditions he’s seen. So what is the reason reported by each of these companies and the market analysts for this for this structural catastrophe?... Rampant discounting! A number of reports have documented this dire situation including this one from KPMG... And an article in SMH begging the question: “what, if anything, will halt the downturn?”Well, let’s now jump to a more positive story with a growing trend showing massive potential in helping turning around other sectors such as Customer Service and Hospitality. Gartner has forecast that 70% of big companies will be using it by 2015. Gamification is the process applying game mechanics such as points and prizes to non-game scenarios. Early iterations include loyalty programs giving points for purchasing and more modern digital examples such as Foursqaure awarding status for checking in to your favourite place to hangout or Sneakpeeq offering discounts for sharing deals with friends.What if we could somehow gamify retail to make shopping more exciting which would drive sales without discounting...!?! What impact would that have on the $1T global ecommerce market? What is the problem? Who has this problem? Where are they? How do you find them? Characteristics. Show the emotion. The pain. The dire need for and pain of heart surgery this is not time to talk about mild issues or vitamins. Good time for humour.
Let’s imagine you’re about to buy something cool online, like a mini speaker for your iPhone. Now let’s imagine that instead of clicking the boring old “Buy” button, you could instead click the “Buy-to-Win” button which meant that once you committed to the purchase, you would instantly find out if you win it for free. Now imagine, unlike most competitions, the odds of winning were actually achievable, in fact unbelievably good, like 1 in 5 or 1 in 4 or even a 1 in 3 chance to win! Now imagine that it was also transparent, so if you bought the required number, for example 3 items, then you’d be guaranteed to win one. Imagine how many more people would buy if all this was possible...!?! Well this is exactly what Wynbox does with our Buy-to-Win concept and that’s exactly what we’re going to demonstrate right now. I need three volunteers from the audience who want to win one of these X-Mini speakers for your phone or tablet. They’re very cool and you can win one right now if you come up on stage. OK, great. One of you will definitely win because the game works sequentially, not randomly.Live spin to win an X-miniWe can all see now how much excitement we created here with a simple demo, well imagine if retailers could offer this concept to complement their existing promotion strategies to help them drive sales without discounting. Now we’re not claiming we can single handedly save retail, but this is certainly a valuable addition to a brands’ arsenal of sales strategies. Innovation – Why are you different? What is your secret sauce. Originality. X Factor. More? Why it solves the problem Screen shot or product picture – or – only if it is really good – a demo video. You almost certainly will NOT have time to do a demo but showing a step 1 2 3 slide can help
If we plot out the existing sales promotion methods, you can see that most of them have been around for a while and it’s difficult for retailers to offer something unique to their customers. Buy-to-Win is unique which allows brands to offer something new and exciting to cut through the clutter of other marketing activity.
We’ve built the core technology, called the ratio engine, which sits in the cloud as a SaaS offering. We initially built our own online store selling direct to consumers under the Wyngle brand to test the concept and validate our assumptions. Following on from the successful results, we launched the SaaS model late last year under the Wynbox brand which integrates into shopping carts for brands to offer to their customers. This includes brands such as Rydges who we’re live with and others such as Dick Smith, David Jones and Pizza Hut who we’re in progressed discussions with. Next we’ll be releasing a facebook shopping app which allows the brands to run Buy-to-Win deals on their facebook pages which will simplify the integration and provide a rapid distribution channel.
We’ve got a really solid team with the right skills and experience to take this concept to the world. We’re very passionate about the concept and its global potential. We’ve also been very lucky to have the support of some key industry leaders who have been generous with their time, providing invaluable advice.
We went live with our first major client last month - Rydges Hotels. They ran a 1 in 5 free rooms campaign for their new Sydney Airport hotel. There were two main metrics we looked at - page conversion rate (which they normally get at around 5-7% for their other promotions) and sales up-lift, which they were expecting to see between 10% and 20% growth. We absolutely smashed it out of the ball park - roughly doubling their conversion rate and delivering 125% sales up-lift compared to their other channels. It went so well that they couldn’t turn it off and have extended the campaign to get more booking in.We generated $60k in revenue last year and almost surpassed that in the last month with $45k from a single Rydges hotel - they’re now looking to roll it our across all 50 hotels and into Events Cinemas for movie tickets, which is part of the same group, AHL. Traction – Data. Surveys. Profit. Signups. Evidence of Execution. Traffic. Customer interest. Adoption. Revenue. Some or all the above. More? Testimonials Differentiators!
We have a clear defensibility strategy covering a range of key areas.(still to add to) Defensible – Why will you stay ahead and not be de-throned. Intellectual Property – IP. Community. Marketplace Liquidity. First mover. More?
As we know, each category is typically led by a dominant player, becoming ubiquitous within their sector. We believe our first mover advantage and speed to market will allow Wynbox to become synonymous with Ratio Buying which will defend our leading position and create another barrier to entry.
In Summary, Wynbox ticks all the boxes and is set to become a seriously disruptive technology in the struggling retail space.
