RME Deck


Published on

The RME Story

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

RME Deck

  1. 1. In-store Intelligent CRM 714-273-7088 Yukai@RewardMe.com
  2. 2. WHO WE AREYu-kai Chou (CEO): 6 years entrepreneur experience; Co-Founder/CEO ofViralogy and FDCareer; Regular Lecturer/Speaker on Geolocation andGamification at Stanford, Google, and various VC/Entrepreneur gatherings; BAfrom UCLA.Adam Gervin (BusDev): Entrepreneur with $1 Billion in Exits. Co-Founder ofOneBox.com (sold to OpenWave ), VerdiSoft (sold to Yahoo!), Caustic Graphics(sold to Imagination), SEVEN Networks (profitable and #2 after RIM). MD fromStanford and BS from Yale.Stephen Johnson (Product): 15 years of programming experience. CTO ofViralogy and FDCareer; Lead Developer at Bunchball, a gaming mechanicsstartup ($2M in revenue within 1 year with customers like NBC, P&G, Victoria’sSecret). BA & BS from UCLA.Jun Loayza (Marketing): Co-Founder of SocialMediaMarketing.com of SEOP.Grew to $12M in revenue with customers like LG, Levi’s, and Activision. CMOof Viralogy and FDCareer. Cofounder of Untemplater (sold to FinancialSamurai). Hired, trained, and managed a 25-person sales team. BA from UCLA. REWARDME.COM
  3. 3. Our story of learning, pivoting, andachieving product/market fit (and a $1M contract)
  4. 4. In 2010, we conceptualized theconcept of using a smartphone to replace punch cards
  5. 5. Within 3 months, we quicklylaunched an iPhone/Android App that scanned QR Codes
  6. 6. We were the earliest in the market with that model
  7. 7. LOL...
  8. 8. We learned that one person going door-to-door, we could quickly get 70 stores to sign-up in Silicon Valley in 2 months
  9. 9. In Mountain View, and Palo Alto, itseemed like we were all over the placeMany tech savvy foodies loved us and some wrote blogposts about us
  10. 10. It seemed so promising that we raised around $1M from private angels and TeleNav. We were early. We could get into stores quickly with more foot soldiers. Techusers loved our product. We were excited.
  11. 11. But....We also knew there were many problems
  12. 12. Problems Our product wasn’t creating disruptive, normeasurable value for the store Only a small % of store users can/will sign up Our product could not record purchaseamount WITHOUT affecting operations Customer Support for these stores were awful Saturating local markets lead to a dead-end
  13. 13. Essentially...we were selling the wrong product to the wrong customers
  14. 14. Judgement Call:1. Ignore these problems and continue ourmomentum in getting more stores andraise more funding (This is what everyonein the market is doing)2. Go back to the drawing board andactually create a product that actually canbe a market winner
  15. 15. Both?Startup Genome Project: #1 reasonstartups fail is premature scalingChanging our model after being inthousands of stores would be a nightmareWe had to decide NOW
  16. 16. New Company Thesis:❖ The market will be won by those who tackle the hard problem of selling into chains❖ Domino Effect: large chains are slow adopters but fast followers❖ Large chain traction will trickle down to small stores nationwide❖ Large chains have an entirely different set of requirements (ROI, Data, etc.)
  17. 17. We relaunched at the end of 2011 with aMUCH better product that satisfies chain store requirements...
  19. 19. STEP 1: ACQUIRE How? 1) Sign up every guest 2) Capture detailed data (and lots of it!)3) Without interfering with speed and business operations REWARDME.COM
  20. 20. STEP 1: ACQUIRE Put iPads into stores to run their rewards program Collect real-time purchase data from any Point of Sale system Guests join with just a phone number(Currently acquiring between 20-40% of ALL daily guests) REWARDME.COM
  21. 21. RewardMe In Store REWARDME.COM
  22. 22. STEP 2: ANALYZE Target guests based on usage filters (spend, visit frequency)Target guests based on demographic filters (has kids, income > 100K) REWARDME.COM
  24. 24. STEP 3: ACTION Auto-Triggered Messages via 1) In-Store Screen 2) Mobile SMS/PushBased on 1) Purchase Preferences 2) Demographics 3) External Environment REWARDME.COM
  25. 25. RECAPRewardMe reads receipts from ANY POS And acts in store, on the web, and on your phone Analyzes, interprets, and prepares the data for consumption
  26. 26. Result Based on 20 Stores for 7 months (120 more signed up) 116,000 27.58% Check-ins of ALL purchases(from 66,264 Users) (up to 51%) 64% 33%Check-ins from Users Opt-in to SMS Repeat Users Marketing REWARDME.COM
  27. 27. Result Based on 20 Stores for 7 months (120 more signed up)RewardMe users 5.7%buy 20.5% more AOV difference is provable LiftProvable 2% 66% Bottom-Line Revenue Lift Revenue Lift on day of ($20K/yr) SMS Push REWARDME.COM
  28. 28. 10x Better Solution Compared to “the best” in the market Duration Users/ Name Users Locations Redeems (mo) LocationRewardMe 66,000 6 20 3300 10,111Belly Card 200,000 12 1500 133 14,000Five Stars 250,000 15 700 357 NA REWARDME.COM
  29. 29. Business Model Stores pay for Monthly Service hardware (and Fee per location installation) (feature-based)Mobile Purchase SoLoMo Commissions Targeting REWARDME.COM
  30. 30. PipelineEvaluation Negotiations Pilot Full Rollout REWARDME.COM
  31. 31. $1 Million+ Contract Hardware &$500-$1000/mo Installation per location covered 90 $1,080,000/yr Locations Revenue REWARDME.COM
  32. 32. Series A Funding• 2012: Raise $5M to scale up business• 24 months runway• Spending Plan: Marketing/Bizdev: $2,000K Tech/Infrastructure: $1,700K Account Management: $800K General/Admin: $500K REWARDME.COM
  33. 33. Summary1.Mooyah loves HUGE Market RewardMe!2. Experienced/Successful Team3.and we know you will too Product Leadership4. Success in Enterprise sales Yu-kai Chou 714.273.7088 Yukai@RewardMe.com