This document outlines a proposed loyalty business model to bridge the gap between retailers and consumers using mobile technology. It discusses setting up a platform where retailers can publish offers and consumers can access them on their mobile devices. Retailers would pay an annual fee to join, and revenues would come from signing up individual stores, small/large chains, and nationwide retailers. The proposal estimates customer acquisition, store signups, operational costs, and projected revenues over two years, with revenues reaching $434,000 by the end of the second year. Successful similar loyalty programs already operating in other markets are provided as examples. Initial steps outlined to launch the business include hosting the software, setting up demonstrations, and beginning sales efforts with consumer brands in a target

1. Loyalty Business Model
Bridge gap between stores and consumers with the help of mobile technology
Presentation includes
Current market scenario
Gap in the market
Solution
Technologies
Operations
Marketing
Revenues
Operational Costs
Successful stories in same business
How to set up loyalty business
mstring

2. Retailers
 Need more customers
 Need loyal and repeated customers
 Need their offers reaching the customers in a smarter way
 Unlike through expensive TV / Print Media Ads / web media
 Or any other Ads
 Even if they have membership plans / cards, they hardly attract customers
 Retailers spend more on advertising their offers
 Currently they do not have measurable mechanism if their adverts are really
paying back to them

3. Consumers
 Want more discounts / offers
 Consumers want to compare offers and do smart purchases
 Consumers can get GROUPON offers / deals

4. GAP Between Retailers & Consumers
 Retailers offers are not reaching 100% to the consumers
 Though some adverts are seen in print / TV media, consumers hardly
remember the offers at the time of real purchasing
 Consumers are not able to compare the offers
 There are NO GROUP ON offers currently offered by retailers
What is groupon offers?
If a group of consumers (a group of close friends / families / associations) go to a retailer, then more
products of consumers are sold at one shot. If groupon offers are known to the consumers then a
group of consumers can avail the offers.
Example : In real estate property, say there are 10 properties. If a 10 member group goes to the
property seller, he can sell all properties at one shot. This way he can reduce his advertising costs, his
time to sell is reduce, he realizes quick money. At the same time, all group members get the properties
at discounted price.

5. Retailers
In order to acquire customer base
 Retail Store Types
 Individual stores
 Chain of stores in a city
 Chain of stores across the country
 Individual stores cannot afford to spend on advertising their products and
offers
 Small chain of stores in city or in a region also cannot afford to spend on TV
and News Paper based advertisements
 Nationwide stores, spend lot of money in advertising their brand and offers
on TV and News Papers. But are their advertisements are paying them back
100% ?

6. Retailers
Whether small stores or small chain of stores or nation wide chains of stores
 Even if they advertise, how many of their advertisements are really reaching
the target audience?
 Do people really know their offers?
 Do people really compare their offers and visit them?
 Some nationwide big chains provide loyalty membership cards but their
regularly changing offers do not reach their members even if they advertise
about their offers.

7. Retailers’ offers should reach the pockets or hands of people
 Then people will be aware of retailers’ offers
 They can compare the offers
 They can also earn points and become loyal customers to the retailers
 They will also be aware of groupon offers
Currently there is no single platform or media for the people to know the offers related
information and it has to be handy too!
Solution
You become the bridge between customers and retailers – How ?

8. How to become the bridge?
Set up a loyalty business
 That brings all individual stores, chain of
stores and nationwide stores to a single
platform
 That enable all stores to publish their
offers using a easy web control panel
 Enable customers to access the offers
related information on mobiles
 Customers know offers on their mobiles,
compare offers and visit the stores
 Customers avail the offers
 Customers can also earn points for their
purchases
Your loyalty enterprise
Retail 1 Retail 2 Retail 3
Customers

9. Videos for easy understanding
https://www.youtube.com/watch?v=fKgt6vL_bt8#t=94
http://vimeo.com/68165924
http://vimeo.com/35435175
http://vimeo.com/37318788#at=0
http://vimeo.com/42658860#at=0
http://www.shopkick.com/index
Your loyalty enterprise
Retail 1 Retail 2 Retail 3
Customers

10. How it works ?
 You signup with several retail brands
 Retail brands (Merchants) pay for
signing up with you
(initially they may pay less but as the
customers use your app, you will get
demand)
 You advertise your app on web and also
in news papers
 Customers download or access your
app on their mobiles
 Merchants publish their offers using a
web based software
 Merchants’ offers are available in the
apps of customers
Your loyalty business
company
Retail 1 Retail 2 Retail 3
Customers

11. How it works ?
 Customers download the app
 Customers access offers (based on
category of the business ex: restaurants
, electronics etc)
 Customers compare offers
 Customers visit stores
 Customers shop
 At the billing counter , customers show
YOUR LOYALTY app
 Billing executives, access web based
software and do the billing
 Customers not only get offer discount
but also avail points
BECAUSE OF THESE POINTS
CUSTOMERS REMAIN WITH YOUR
MEMBERSHIP
Your loyalty business
company
Retail 1 Retail 2 Retail 3
Customers

12. Viral & Social Marketing in built
 Consumers can share the offer related
information of a brand on facebook,
twitter.
 Consumers also earn points by sharing
the offer on facebook
 This way, the offers become popular
and it increase the traffic to the stores
 Your app also becomes popular
Your loyalty business
company
Retail 1 Retail 2 Retail 3
Customers

13. Technology - Software
Simple
 An app for the customers to download
 A web based administrative panel for you
 To know the merchants reports
 Customers reports
 Customers points
 A web based administrative panel for
Merchant management
 To publish their offers
 To know the reports of customers,
customer usage and customer points
 A web based administrative panel for
merchant Stores
 To add customers to the offers (who
visit them)
Your loyalty business
company
Retail 1 Retail 2 Retail 3
Customers

14. Technology - Hardware
Simple
 An app for the customers to download
Customers access through mobiles
 A web based administrative panel for your business administration
You can access this through your computers / laptops through web
 A web based administrative panel for Merchant management
Merchants’ Supervisors / Managers can access through computers / laptops
through web
 A web based administrative panel for merchant Store
Billing executives at stores can access through their POS terminals (through
web) or you can also provide them separate tablets / phones to access the
software

15. What is need to start the business?
 App and software – Is ready with us
 A Web server – we host the software on a web server. Web server costs
would be in the range of USD 1500 for 3 months
 Software Maintenance per month
Per month the software maintenance and development of required
enhancements need two / three developers. Initially for 3 months the
costs per month would be USD 1000 per month. It will increase
later on to maximum USD 4,000 or 5000 per month (as the consumers
and retailers increase, more maintenance and support would be needed
Nothing Else from technology side

16. Marketing
 You need sales executives who reach the retail chains
 Initially start marketing in a city then spread to other cities
 Per city, two mid level marketing / sales executives are needed
 Approach retails
 Call all retailers and organize a seminar for bulk signups with you
 You need to advertise the app on TVs / Print media to popularize the app
Just like ….
 Budgets : Set budgets for advertising, can even pickup cost effective
campaigns near the shopping malls, retails etc.

17. Stores to target – some brands
 Restaurants (MrBig chain, TFC etc, Dominos, Johnny Rackets,)
 Consumer stores
 Departmental stores (everyday super market, SPAR,
 Consumer Electronics stores (ARTEE, SIMS, KONGA, Coolworld
Electrical Retail Stores etc)
 Home Appliances
 Travels
 Hotels
 Bars
 Furniture stores
 Pharma Stores

18. Client base
 There should be more than 1 million downloads of the app
 The more downloads , the more STRENGTH OF CHARGING FEE FROM
MERCHANTS
 THE BUSINESS ALSO GETS THE ATTETION OF BIG INVESTORS OR
TAKEOVER GIANTS
 Viral and social marketing in built makes the concept popular

19. Revenues – Number of stores in 2 years
Q1 Q2 Q3 Q4 Q6 Q8
Number of
cities to target
Number of
cities to target
Number of
cities to target
Number of
cities to target
Number of
cities to target
Number of
cities to target
1 2 3 4 5 6
Store Types
Annual Fee in
USD
Number of
stores New stores New Stores New stores I New stores New stores Total Stores
Single Store 500 3 6 9 8 12 12 50
Citywide chain of stores 1- 5 1500 2 4 6 8 10 10 40
Citywide chain of stores 1- 10 2000 0 2 4 6 6 6 24
Statewide chain of stores - 1 to 5 1500 2 4 6 8 8 8 36
Statewide chain of stores - 1 to 10 2000 0 2 4 8 10 10 34
Statewide chain of stores - 10 to 20 2500 0 1 3 4 6 6 20
Nationwide chain of stores - 1 to 5 1500 2 4 8 8 8 8 38
Nationwide chain of stores - 1 to 10 2000 0 1 3 4 4 4 16
Nationwide chain of stores - 10 to 20 2500 0 1 3 4 4 4 16
274
 Start with a city in quarter one
 Spread to other cities in following quarters
 Start with 2 sales / marketing executives in a city
 Target city based, statewide and nation wide consumer brands

20. Practical
Revenues in 2 years in USD
Annual Fee in
USD Revenues -Q1 Revenues-Q2 Revenues-Q3 Revenues-Q4 Revenues-Q6 Revenues-Q8
Single Store 500 1500 3000 4500 4000 6000 6000
Citywide chain of stores 1- 5 1500 3000 6000 9000 12000 15000 15000
Citywide chain of stores 1- 10 2000 0 4000 8000 12000 12000 12000
Statewide chain of stores - 1 to 5 1500 3000 6000 9000 12000 12000 12000
Statewide chain of stores - 1 to 10 2000 0 4000 8000 16000 20000 20000
Statewide chain of stores - 10 to 20 2500 0 2500 7500 10000 15000 15000
Nationwide chain of stores - 1 to 5 1500 3000 6000 12000 12000 12000 12000
Nationwide chain of stores - 1 to 10 2000 0 2000 6000 8000 8000 8000
Nationwide chain of stores - 10 to 20 2500 0 2500 7500 10000 10000 10000
10500 36000 71500 96000 110000 110000
Total
Revenues in
USD 10500 46500 118000 214000 324000 434000
These are standard charges that are currently in other countries (In fact we
reduced by 25% to be more practical in the revenues).
Attached Excel has calculator, you can change the numbers and realize the
revenues accordingly.

21. Operational Costs
Revenues in 2 years in USD
Salary Costs
Q1 Number of
people
required
Q2Number of
people
required
Q3 Number of
people
required
Q4 Number of
people
required
Q6 Number of
people
required
Q8 Number of
people
required
Marketing Executives - Mid Level 2 2 2 2 2 2
One Senior Mktg Pro 1
Another Senior Marketing Pro after Q3 0 1
Operational Executives 1 1
Customer Support in 2 3

22. Similar Successful Models
Bellycard , Chicago
Belly – Chicago based loyalty program operator
https://www.bellycard.com/
It took Belly 166 days to reach its first 100,000 check-ins, 27 more days to reach
200,000, and is now seeing around 100,000 check-ins every eight days. Around
2,000 to 3,000 new users are added per day to the service, and customers have
redeemed over 14,000 rewards since the company’s launch in August 2011.
Belly has nearly $13 million in total funding from Andreessen Horowitz, Lightbank,
and others. The company is now working to transition to HTML5 for its apps, and is
planning aggressive expansions to new markets, thanks to the recent infusion of
capital.

23. Similar Successful Models
Shopkick, Frontflip USA
Shopkick App Location Based App Shopkick is a location-based app,
which offers customers rewards for walking into a store. The app is
widely used by retailers like Best Buy, Target, Old Navy, and Macy’s.
The app works with 7,200 stores in the U.S., including locally-owned
stores as well as large chains. It’s free on both iOS and Android.
Shopkick:, USA
http://www.shopkick.com/index
FrontFlip
http://www.frontflip.com
FrontFlip App for iPhone and Android FrontFlip gamifies store rewards by
offering customers a digital scratch card when they scan at restaurants.
Users can win discounts or free food when they “scratch” off the game
piece. There are versions for iOS and Android.

24. Similar Successful Models
Shopkick, USA
LevelUp
https://www.thelevelup.com
Levelup App Free App for Customer Pay And Earn Rewards LevelUp is yet another free
app that lets the customer pay as well as earn rewards. By using the app, the first
payment made helps you to save cash immediately. The loyalty campaigns offered by the
app help loyal customers gain more rewards. Like the others listed here, this app is
available for both iOS and Android.

25. How to get started
 We will host the software on our server
 We will set up the demos – mobile apps, web apps
 You start approaching the consumer brands in a city, to start with
 You need to advertise the app / concept so that more consumers
download the app and use