Fanminder Presentation


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  • My name is Paul Rosenfeld and I’m the Co-Founder and the CEO of Fanminder.

    Like many passionate entrepreneurs, Tracy Grover and I quit our jobs in the teeth of the recession at the end of 2008 with the vision of harnessing power of mobile and social marketing to help local, small businesses not just survive but thrive and beat the big guys.
  • As the General Manager of QuickBooks Merchant Account and QuickBooks Online Edition I saw first hand how local restaurants and retailers spend $130 Billion a year to acquire new customers using expensive marketing, but spend much less to keep those same customers coming back.

    That’s because they don’t have time, they didn’t go into business to be a marketer they went into business to be a chef or a masseuse, and their fans keep getting harder to reach as they spread their attention and contact preferences among Facebook, Texting, Twitter, and yes, even email. They’re not minding their fans.

    Because of this, the local shopkeeper is in acute pain of leaving money on the floor, not growing as fast as they could.

    This is a $4BN opportunity awaits to be unlocked for the RIGHT company who has a DEAD SIMPLE WAY to help local businesses easily market to their customers.

    What they do: a little bit here and there: punchcard here, a Fb post there, an email newsletter over here every six weeks.

    falling response rates from their investment of time and money. Slower revenues and wasted money is a big problem so they get into deeper water by doing expensive Daily Deals.
    The root cause of this problem is that their price promotions rely on PAPER (stale offers, printed emails, no tracking so they don't know) which is totally out of touch with how the modern consumer is online and on their phones.
    And the problem is getting worse, because there’s more social ways than ever to get promotions out there, and competitors (like déjà vu) force you to keep up.

    Everyone is looking for killer geo loc app for local

  • Fanminder is creating today what most of you believe is impossible:

    Who's the first set of customers, then next set? First, restaurants, we're proving this out in the toughest end of the segment, then moving to personal services

    So think of Fanminder as beginning where Groupon ends for small, local restaurants, retailers and services firms:
    We create simple, instant, promotions to existing customers
    It’s completely do it yourself for one easy month price averaging about $50 for unlimited promotions.

    Here’s how it works.

  • First, we help them grow their fanbase by giving them a turn-key signage store, sign-up widgets for their website, and viral sharing on Facebook.
    Fans sign-up by whipping out their phone in the store and texting the business’ name to a special 6 digit number, or the fan can like the business on Fb or twitter.
  • Then the merchant can create an unlimited number of one-time use, trackable coupon or other promotion in about 60 seconds.
  • The coupon or special is published to the merchant’s mobile list via text message.

  • It’s published to the merchant’s Fb wall. And you’ll notice each promotion has a link to “grab this offer” to their phone.
  • They can place a Grab to Phone Button in their Email Blasts.

    By the way this is a real email and a whopping 1600 people clicked this button.
  • And they can place it on their own website.

    Do you see where I’m going with all this?
  • Every Offer creates a corresponding, dynamic Social Page. Each Grab to Phone button in email or their website, or the grab offer link in Facebook posts, they all link to the merchant’s very own Social Page.

    It’s easily branded by the merchant and virally shared by fans.

    And most important of all, it’s massively convenient for fans who would MUCH rather walk around with a coupon in their pocket than have to print an email or remember they saw something on the merchant’s wall.
  • And when they walk around with the merchants’ offers in their pocket, our grab-able coupons drive many more redemptions.
    So imagine you and you buddy rush the store, show the coupon to the clerk, and the clerk asks you to simply text back the unique 4 digit code.
    Fanminder will check to make sure the coupon is still valid and send back this congrats message. This virtually eliminates any coupon fraud and enables the merchant to offer the very best savings possible.

    There’s no POS Integration needed.
  • Back in Fanminder, we track how much money the merchant is making with every promotion.

    I just showed you merchants easily create instant and trackable promotions that reach their fans anywhere and are redeemed in-store.
  • Traction: Actual customers/partners (or trials/beta list them w/ logos)

    I can also share how it’s creating revenues for our merchants and deeply engaging their fans with amazing response rates, redemptions, and ultimately store traffic.

    Savvy – 33% redemption rates
    Giordanos – 520 mobile coupons
    El Pelon – 45 person flashmob in 20 minutes
    Video Rental – 40X response rate of email

    What is customer satisfaction?
  • Target Customers
    How well do we know them?
    Campaign info for fans and merchants?
    Growing and converting subscribers XX
    Merchant usage

    Since launching in March, we are serving over 1,000 local restaurants, retailers and services firms and are adding about 400-500 per month from a mix of channels.

    We have over 100 paying customers who represent over 200 locations.

    We target youth oriented small merchants who are newer, looking to grow, using Facebook and other new media, and appealing to customers with promotions.

    Along the way we’re acquiring smaller chains who are seeking us out for our simplicity vs. more complex services.

    Customer Usage
    We’ve sent 826 campaigns @ avg of 11.8 campaigns/customer and 52 texts/campaign
    Customers have sent total of 615 texts each
    Customers are sending 52 texts per week and .36 texts per fan per week
    We manage 8,533 fans for 70 customers, an avg of 122 fans/customer
    Opt-out rates of 10-20%
    Lost only a handful of customers
  • How do we acquire them?
    Are channels competing with each other?

    We’re growing our customer base through a mix of strategic partnerships like Intuit, building our own resale channel, and expert blogging on the top small business blogs in the country. We’re crushing it in some channels and just getting started in others.

    We’re essentially having others finance our growth through 20-30% rev shares to the partners and resellers.

    We’ve built a growing network of 40 resellers who sell other services to small businesses like website design and hosting, credit card processing, or small, marketing agencies
    We just hired our first salesperson to call on larger multi-location businesses.
    And we’re building an online educational machine with being published on _______. Focus on small biz influencers, press, social gurus

  • We make money by growing a merchant’s contactable fanbase so they gain repeat revenues from Fanminder marketing.
    We take a small piece of this by charging a monthly subscription
    We give a recurring rev share to the partner who sourced our customer.
    Our we pay a shrinking costs of goods will soon shrink to for messages…. very little as our volume scales and our marketing methods become a mix of FB, Twtr and other API-based marketing vs. solely SMS.

    Show pricing

    And we’re learning how to price for multi-location businesses.

    On the slide show customers and ASP, # of free, # paid customers
    Early years: Units sold, ASP, headcount, cash burn
    Out years – top line revenue growth and margins

    Chains – if someone comes along, they have a world of mobile customers –
    2011 it’s $250????? cost per customer
    Significant opportunity to reduce expense by paying referral fee
  • Your sustainable competitive advantage (why you will win)

    Our competitors are mostly pt solutions and a few like CircleStreet that look like us, but we win because

    There are some companies just like us: CircleStreet, SproutSocial… we beat them by:
    Easy to use b/c we know how to build easy to use software
    Out-executing – we’re armed with deep customer insights and traction and we know how to acquire small business customers

    Fanbase – Closely, CircleStreet

    10-20 Media
    A.L. Phoenix Marketing & Training
    AditAll Group
    Advance Internet
    American Consolidated Media
    American Press Institute
    Archstream Media
    Associated Northcliffe Digital
    Astral Media
    AT&T Interactive/
    Bank of America
    Belo Interactive Media
    BizBuzz Search
    BMP Radio
    Bonneville Cincinnati
    Border Media
    Broadcast Interactive Media
    Broadcasting and Cable
    Calkins Media
    Canadian Newspaper Association
    Castello Cities Network
    Catalyst Investors
    CBC New Media Group
    Charter Media
    Citadel Broadcasting
    City University of New York
    Clickable, Inc.
    Comcast Spotlight
    Coming Attractions Theatres
    Community Newspaper Holdings Inc.
    Cordillera Interactive
    Coupons Inc.
    Cox Interactive Media
    CyberInk and
    Deluxe Corporation
    Digital Media Metroland Media Group Ltd.
    Dow Jones Local Media Group
    Editor & Publisher
    Edytor SP. Z.O.O.
    El Clasificado
    Emmis Interactive, Inc.
    Evening Post Digital
    EW Scripps
    Family Features
    Fast Company
    Fisher Communications
    Fox Audience Network
    Gannett Co.
    Gatehouse Media, Inc.
    Godengo Inc.
    Gold Country Media
    Grant Broadcasters
    Gray Television, Inc.
    Greater Media Interactive
    Hearst Media Services
    House & Home Magazine
    Inergize Digital
    Internet Broadcasting Systems
    Journal Communications
    Journal Inc.
    Journal Register Company
    Kaesu, Inc.
    Kelsey Family Holdings, Inc.
    Kenshoo Local
    Keyword Connects
    Langdon Publishing
    Lee Enterprises
    LIN TV Corp.
    Local Matters Inc.
    Local Thunder
    Long Island Radio Group
    Maroon Ventures
    Media General
    Media Life Magazine
    Media Post
    MediaSpan Group
    Meredith Corporation
    Metroland Media
    Missouri School of Journalism/Reynolds Journalism Institute
    Morris Digital Works
    NetNewsCheck LLC
    Network Communications, Inc.
    New Thinking
    New York Times Regional Media Group
    Newsday Media Group
    Newspaper First
    Opus Research
    Paddock Publications
    Petsky Prunier LLC
    Presslaff Interactive Revenue
    Profile America, Inc.
    Raycom Media
    Regent Broadcasting Inc
    RGA, LLC
    Saga Communications
    Salem Communications
    Sandusky Newspapers, Inc.
    Saskatoon Media Group
    SAXOTECH, Inc.
    Scarborough Research
    Schurz Communications
    Second Street Media
    Simulmedia Inc.
    Small Newspaper Group Internet
    SmartStream Marketing
    SNG Internet Innovations
    South Central Communications
    South Central Media
    Starcom MediaVest Group
    StateVentures, LLC
    Suburban Newspapers of America
    Sun-Times Media
    Swift Communications
    TeenLife Media, LLC
    The Berry Company
    The Blinder Group
    The Buffalo News
    The Cobalt Group
    The Free Lance-Star
    The Laredo Group
    The McClatchy Company
    The Observer Group
    The Poynter Institute
    The Press of Atlantic City
    The Sonoma Index-Tribune
    The Tribune Company
    The Vindicator
    The Wall Street Journal
    The Weather Channel
    Time Warner Cable Media
    TMP Directional Marketing
    Transcontinental Media
    Tribune 365
    Tribune Company
    Triton Media
    U.S. Local News Network
    Universal Business
    USA4SALE Networks, Inc.
    Village Soup
    Washington Post Digital
    Weather Central LLC
    Web Visible
    WHA Publications Limited
  • Team/board – who do you have and what is their advantage/pedigree? exits, IPOs, sucesses

    Intuit, Amex….
    Team is assembled, has worked together for several years and has collectively decades of small business expertise.
  • Your “ask” or your close – what do you want? (A meeting, partners, referrals, beta customers, investors)

    To-date we’ve received $275,000 from 8 angels and are now ready for our Seed Round. So we’re putting together our package to raise at least $1M

    So many of you are publishers and aggregators with a need for offering our simple service and we’re working now on a private label version due in January.

    Our main message to you is that we’re open to your opportunities. Thank you.
  • Your “ask” or your close – what do you want? (A meeting, partners, referrals, beta customers, investors)

    To-date we’ve received $275,000 from 8 angels and are now ready for our Seed Round. So we’re putting together our package to raise at least $1M

    So many of you are publishers and aggregators with a need for offering our simple service and we’re working now on a private label version due in January.

    Our main message to you is that we’re open to your opportunities. Thank you.
  • Fanminder Presentation

    1. 1. Fanbase Marketing for Local Businesses
    2. 2. Customer marketing is too hard – and getting harder 2 Time SMS SMSSMS SMS
    3. 3. 3 We begin where Groupon ends: Easily create and publish instant promotions that reach fans anywhere.
    4. 4. We Grow Their Fanbase 4
    5. 5. Merchant Creates Instant Promotions
    6. 6. Merchant Reaches Mobile Fans
    7. 7. Merchant Reaches Facebook Fans
    8. 8. Merchant Reaches Email Fans 8
    9. 9. Merchant Reaches Website Visitors 9
    10. 10. Fans Grab Offer to Phone
    11. 11. Offers Redeemed In-Store
    12. 12. Most Important #s Tracked 12
    13. 13. Validation In The Market 13 Wine Retail Video Rental Pizzeria Taqueria 33% redemption rate 40X response of email 600 coupons grabbed to phone 45 person flashmob in 20 minutes
    14. 14. Food & Bev • Pizza Parlors • Snack shops • Bars • Quick Serve 14 Retail • Boutiques • Wireless • Wine and food sales Services • Fitness centers • Tattoo parlors • Auto repair • Martial arts • Day spas Surprise! Dozens of chains Serving 1,300 Small Businesses
    15. 15. Growing Distribution Channels 15 Partnerships Resellers Direct Social + Press 45 salespeople, agencies… Inside sales To be named on Feb 1
    16. 16. Recurring Revenue Business Model 16 Merchant gains repeat business Fanminder charges monthly price Fanminder pays partners & msg costs SMS
    17. 17. Unlocking Market With Simplicity 17 Dead-simplicity Focus on mainstream needs Traction from execution
    18. 18. Experienced and Gelled Team Team of small business experts Dustin Friel VP Engineering Intuit 18 Paul Rosenfeld CEO / Marketing Intuit, Amex Tracy Grover COO / Product LoopNet, BofA
    19. 19. How You Can Help • Help us close our seed round • Strategic Go to Market Partners – Private label version launches January • Advice, ideas, or just support … 19
    20. 20. Thank You! Paul Rosenfeld Call or text me: 650-544-5483 20