Lily and john Story

A day in the life of Lily and John!

Lily heads to work in the morning…

The Story Line

In route she stops at the local petrol station to top her tank.


The Story Line

While she’s filling the tank, she calls her husband John and asks him to stop by the grocery store after work to pick up a few items for dinner. Lily pays for her petrol using a credit card.


The Story Line

As she is paying, Lily notices EKO (BP, Shell) has a new loyalty program offering fill-ups of her mobile phone every time she fills her tank—credits toward future airtime and data packages for her smart phone. Lily decides to join the program right away.


The Story Line

Now, each time she shops for petrol, Lily’s loyalty program will credit her account with additional airtime benefits.

*Many credit cards offer additional credit (see Addendum B)


The Story Line

The business model for our loyalty program resembles the “Groupon Effect”--offering discounted value from each retail purchase for mobile airtime credits. To accomplish this, TCC “sells” loyalty points to retailers, and retailers issue them to their customers during check-out and payment. Our goal is the creation of a new tool to enhance loyalty programs throughout the year. The lure of additional airtime keep customers returning.


Explanation

Importantly, our program supplements TCC’s existing loyalty campaigns, and enhances TCC’s efforts with new retailers who want continuous programs that overlap with TCC’s traditional product-based campaigns. Consider this program a compliment, not competition, to TCC’s loyalty campaigns


Explanation


How Does the Program Work?

1. When Lily makes a purchase, she accrues loyalty points from her retailers, who buy these credits from TCC, as they would purchase coupons in a standard loyalty program. After the 3rd month, these loyalty points are activated and become a micro-investment credit toward future airtime and mobile data packages.

Step by Step


2. We match Lily’s micro-credits to a loyalty mobile ID number tied to her mobile number.

Step by Step


3. In the third month, receives an SMS code with instructions to activate extra minutes of air time with her mobile carrier. Lily can also transfer her credits to another family member or friend using the same telecom provider.

Step by Step

Refill your phone

Send to a friend

Meanwhile, back to our story…. After work, on his way home, John stops at the local grocery store to shop for dinner.


The Story Line

John checks out at the cashier, scans his items, and presents the cashier with his own mobile loyalty card. He pays the bill using his bank credit or debit card.*


The Story Line

*Note: Paying with Bank Credit/Debit Cards

Many Credit Card programs offer cash-backs to investors for many important

services. If the customer has such an agreement, we can capture a second

micro-investment in addition to the retail purchase, receiving two investment

credits for the same transactions—petrol and food.


John has just banked additional mobile loyalty credits with his mobile carrier, adding to future airtime minutes. The same process occurs:

Retailer adds credit to the loyalty card

the card credits loyalty micro-investments into John’s

electronic bank

after 3 months, and each month

thereafter, profits and a %

of principal buys airtime from John’s

mobile carrier.

Mobile carrier notifies John via

SMS text

John either 1) activates the SMS message for credit or 2)

resends his credit to Lily, to another family member , or a

friend using the same carrier


Explanation

Lily purchases petrol and John buys groceries. Both transactions build added value through micro-investing—with current and future credits providing valuable additional mobile airtime and/or data packages.


Happy Ever After

After a long day at the office, Lily and John arrive home, hungry and also satisfied they have gained credit for future airtime by using their mobile loyalty program that captures value from common services they need in the course of each day. For TCC and the retailer, our program is a smart tool to improve the customer experience at participating retailers, creating long-term value by increasing customer loyalty and adding fresh options for ongoing campaigns.


End of our Story

The Advantages of Buying Airtime in Bulk When we purchase wholesale airtime packages from mobile carriers, we gain steep discounts from retail pricing. Mobile customers do not have the quantities of scale working on their behalf. But by bundling many smaller micro-investments we achieve critical mass, and the capacity for deeply discounted pricing– a value retail customers can never hope to receive. On average, these discounts range from between 30% to 50%, depending on 1) the size of the funds we accrue at each investment period, and 2) the type of deal we negotiate with each carrier.

As such, loyalty customers will see immediate value through this program.


Explanation

The Investment Pool Option--The Investment Process Our management background includes experience in both asset management and fund administration within the mutual fund industry. The value of our approach is two-fold:

1. The so-called Dollar Cost Averaging (DCA) strategy of investing capital at regular

times in the life-cycle of the markets, using passive investments (stock indices and ETFs) can increase returns and reduce portfolio risk.

2. Using DCA in a global investment management structure requires less active

management, is less dependent on market conditions, and depends on running a systematic, disciplined investment program. We are not “picking” markets or investments. This passive approach is the most common technique deployed today by pension funds and insurance companies to meet current and future obligations.

The attached spreadsheet illustrates how this approach can add substantial value to

a regular investment program (see the variable Excel spreadsheet for more details).


The DCA Option

Advantages for TCC Our Program augments TCC’s existing business focus of creating innovative product loyalty campaigns, adding these benefits: 1) Minimum start-up costs 2) No inventory overhang 3) No down-time. We run year-round, during and between TCCs regular product

campaigns. 4) No competition to TCCs existing business model. Our program can generate interest

in TCC’s other loyalty programs, attracting retailers looking for more innovative campaigns.


Making the Case

Advantages for Retailers Our program expands the range of options for retailers, with the following benefits: 1) Minimum start-up costs. 2) Improved Customer Loyalty—less reason for customers to “shop around” with

competitors 3) Expansion of campaigns—retailers can create more flexible, shorter term

promotions using mobile discounts (Example: Buy X items from Procter and Gamble this week and receive double credits for future airtime).

4) Seamless, virtual program integration with Bank Credit/Debit Cards—greatly enhancing airtime revenues

5) Increased cross-marketing—reduced costs for advertising, and greater market penetration through joint marketing campaigns between retailers, and mobile operators.

6) Virality—See Addendum for detailed explanation.


Making the Case

Date post:	16-Apr-2017
Category:	Business
Upload:	yiannis-hatzopoulos
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Lily and john Story

Business