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

Lily and john Story

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