2. 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:
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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
3. Market Opportunity
Why this product will work:
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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.
4. Marketing Opportunity
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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
5. Competitive Environment
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There are several apps in the marketplace designed to
replace a plastic loyalty card or paper punch card, for
example, Key Ring or StampMe
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There are also location based apps with advertising
opportunity, like Foursquare
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However, there are not apps that combine loyalty and
location based advertising to offer consumers and
businesses valuable, real time and geographically
relevant information
6. Key Partners
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Retailers
Including but not limited to the following.
Supermarkets,Clothing and generic retail stores, Electronic stores, Restaurants,Hotels
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App Developers
Maintenance and upgrade of app,monitoring of inside app purchases, liaison with app retailers including Apple App
Store and Android Google Play.
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Social Media Platforms
To allow for valuable Data capturing.Facebook, Twitter, Google+, Foursquare, etc
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Web Designers
For in App advertising,Website design, etc
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Project Investors
Service Providers
Web hosting company, Legal and Accounting representatives
7. Customer Segments
Goal of customer segmentation:
Create segmented ads & marketing communications
Develop differentiated customer servicing & retention strategies
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Broader Areas
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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
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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
8. Customer Relationships
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Build trust through long term, personal relationships with customers.
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Personalised user experience based on data.
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Delight customers with relevant offers.
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Surprise customers with new ideas.
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Simplifying loyalty and membership schemes aiming to build trust with customer.
9. Channels
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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.
10. 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:
1) Salary
2) Payroll expenses
3) Insurance
Wages & Insurance
11. Revenue Streams
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Free/Paid Version of the App
In App Advertising
For retailers to sign-up, there are two options
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Free basic version
Premium versions which include PUSH notification targeting options,
reporting and additional features
