Loyalty Business ModelBridge 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

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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

Consumers

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

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.

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% ?

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.

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 ?

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

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

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

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

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

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

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

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

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.

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

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

Revenues – Number of stores in 2 yearsQ1 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 50Citywide 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 24Statewide 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 34Statewide chain of stores - 10 to 20 2500 0 1 3 4 6 6 20Nationwide 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 16Nationwide 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

Practical Revenues in 2 years in USD

Annual Fee in

USD Revenues -Q1 Revenues-Q2 Revenues-Q3 Revenues-Q4 Revenues-Q6 Revenues-Q8Single Store 500 1500 3000 4500 4000 6000 6000

Citywide chain of stores 1- 5 1500 3000 6000 9000 12000 15000 15000Citywide 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 12000Statewide 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 15000Nationwide 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 8000Nationwide 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.

Operational CostsRevenues 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 2One Senior Mktg Pro 1

Another Senior Marketing Pro after Q3 0 1Operational Executives 1 1

Customer Support in 2 3

Similar Successful ModelsBellycard , 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.

Similar Successful ModelsShopkick, 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

FrontFliphttp://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.

Similar Successful ModelsShopkick, USA

LevelUphttps://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.

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