Digitizing the Loyalty Card

Group 8 - We Are Going to Make Millions!

Executive Summary

Problem: Tired of sifting through your wallet or purse to find your loyalty cards?

Solution: We eliminating the need for physical loyalty cards by providing a digital loyalty app offering rewards

points across multiple retailers.

Value Proposition: Members who download our mobile application will be able to build up rewards points for their

favorite retailers via a scannable mobile application. SIMPLICITY & ORGANIZATION- Organize your loyalty

cards in an easy to find mobile format, and signup easily for new retailer loyalty programs (no more paper and

pencil applications at the checkout line!), and track the progress of your loyalty points all from one easy to use

application. In addition, this app will offer users specific promotions and suggests based on geotargeting.

Competition: There are several apps in the marketplace designed to replace a plastic loyalty card or paper punch

card, for example, Key Ring or StampMe, but none that offer additional benefits to consumer and business

partners.

Customer Segments:

• B2C – customer with smartphones comfortable downloading applications, brand loyalists,value-oriented

consumers, urbanites

• B2B – retailers interested in growing loyalty program usage and businesses interested expanding into an

engaged loyal audience

Costs: App Development, Salary, Marketing and Promotion, Legal, Insurance

Revenue Streams: Paid version of the app for consumers and businesses

Market Opportunity

Why this product will work:

• In the US & UK - there are a multitude of physical

loyalty cards, with little to no digital presence. eg:

Tesco, Boots, Superdrug, Walmart

• The average Smartphone User downloads 26 apps

• In the US, the most popular apps: eBay Mobile (with

an estimated 13.2 million users in June); Amazon

Mobile (12.1 million); Groupon (11.9 million);

Shopkick (6.5 million); LivingSocial (4.4 million);

Source: Neilson June 2012

Concerns to be aware of and overcome:

• Privacy is a concern with the vast majority of app

users. 73 percent express concern over personal data

collection and 55 percent are wary of sharing

information about their location via smartphone apps.

Source: Neilson.

Marketing Opportunity

• The number of loyalty memberships in the U.S. is 2.1

billion

• While the average U.S. household has enrolled in more

than 18 loyalty programs, they are active in only 8.4

• 85% of loyalty program members haven’t engaged with

the program since the they signed up

Competitive Environment

● There are several apps in the marketplace designed to

replace a plastic loyalty card or paper punch card, for

example, Key Ring or StampMe

● There are also location based apps with advertising

opportunity, like Foursquare

● However, there are not apps that combine loyalty and

location based advertising to offer consumers and

businesses valuable, real time and geographically

relevant information

Key Partners

• Retailers

Including but not limited to the following.

Supermarkets,Clothing and generic retail stores, Electronic stores, Restaurants,Hotels

• App Developers

Maintenance and upgrade of app,monitoring of inside app purchases, liaison with app retailers including Apple App

Store and Android Google Play.

• Social Media Platforms

To allow for valuable Data capturing.Facebook, Twitter, Google+, Foursquare, etc

● Web Designers

For in App advertising,Website design, etc

• Project Investors

• Service Providers

Web hosting company, Legal and Accounting representatives

Customer Segments

Goal of customer segmentation:

• Create segmented ads & marketing communications

• Develop differentiated customer servicing & retention strategies

Broader Areas

• B2C - Adults with smartphones, brand loyalists,value-oriented consumers, urbanites

● B2B - interested in growing loyalty program usage and businesses interested expanding into an engaged loyal

audience

Specific Segments

• Geographical - targeting only European & US markets (separately due to different audience preferences)

• Age - primarily target both men & women aged 28 to 65

• ‘Coupon Collectors’ - those who habitually collect coupons & reward points

• Regulars - those who shop regularly at specific stores who can persuaded to be rewarded for their loyal

behaviour

Customer Relationships

• Build trust through long term, personal relationships with customers.

• Personalised user experience based on data.

• Delight customers with relevant offers.

• Surprise customers with new ideas.

• Simplifying loyalty and membership schemes aiming to build trust with customer.

Channels

• Customer downloads a free app and/or paid app

• Customer will save all loyalty cards within the app.

• Daily offers on homepage

• Shop/Scroll through brands through app

• Location based offers

• Geofencing & Geotagging

• In-store only offers to drive footfall.

• Countdown - push notification feature.

• Collect and track loyalty points through app.

Cost Structure

Expense Expense Breakdown

Online Business Costs: 1) Website Design & Development,

2) Monthly Website Hosting

3) Support Services

4) Yearly Domain Fees

Legal Compliance

1) Registering business as a legal entity with the taxing authority;

2) Additional licenses/permits;

3) Attorney and accountant services

Software Application Costs: 1) Development

2) Maintenance costs

Marketing & Promotion Costs Advertising Online Ads- Banners & PPC

FUTURE:

Wages & Insurance

1) Salary

2) Payroll expenses

3) Insurance

Revenue Streams

• Free/Paid Version of the App

• In App Advertising

• For retailers to sign-up, there are two options • Free basic version

• Premium versions which include PUSH notification targeting options,

reporting and additional features

Digitizing the Loyalty Card

Group 8 - We Are Going to Make Millions!