The document is a presentation by RewardDriver promoting their loyalty platform solution. In 3 sentences: RewardDriver's solution combines deal/content management, customer relationship management, and an online transaction gateway to help businesses create and distribute exclusive offers to loyal customers, while collecting valuable customer data and analytics. It argues this focus on retention over acquisition through daily deals allows businesses to avoid high customer acquisition costs and build long-term customer relationships more profitably. The presentation provides an overview of RewardDriver's services and business model and makes the case that their approach benefits both businesses and customers more than competitors.
Putting the Experience in Digital Customer Experience
Reward driver productslides_pgabc
1. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
Product Presentation - Spring 2013
2. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
PRESENTATION OVERVIEW
WELCOME
Problem
•Solution
•Analytics
Meet the Team
Market Research
•Statistics
•Case Study
Our Services
Business Model
•Merchant Benefits
•Consumer Benefits
Sales & Marketing
Next Steps
3. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
Problem…
Coupon clippers and daily deals shoppers don’t stick around.
They're not worthy, so don’t reward them!
Want in on a better way to grow your business?
RewardDriver™ is a loyalty platform that came out of this
daily deal madness with the following question:
Why give your best deals to strangers?
We have the tools, we know the steps.
We can show you how...
4. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
THREE CORE COMPONENTS + ANALYTICS
SOLUTION:
RewardDriver™ brings these
three key components together,
makes it easier for marketers and
consumers to connect, while
providing valuable data and
analytics that can turn everyday
consumers into loyal customers.
DMS: Deal/Content
Management System
CRM: Customer
Relations Management
Pay2Gate: Online Commerce
Transaction Gateway
Mobile Tech
Social
& Local
Mobile
Marketing
DMS Pay Gate
CRM
A “deal management system”,
or DMS, provides online
content management for offer
creation and distribution from
marketers to consumers
through email and social
networks platforms.
Creating offers and managing
customers has little value if a
transaction can’t be completed
between buyer and seller. Convenient,
mobile “payment gateways” are
required for marketers and consumers
to “shake hands” and complete deals.
Customer relations is the base
of any business’ operations,
whether it’s face-to-face in a
store or through technology
s o l u t i o n s k n o w n a s
“CRM” (Customer Relations
Management) systems.
DMS: Deal/Content
Management System
CRM: Customer
Relations Management
Pay2Gate: Online
Commerce Transaction
Gateway
5. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
THREE CORE COMPONENTS + ANALYTICS
DMS Pay Gate
CRM
SOLUTION:
A “deal management system”,
or DMS, provides online
content management for offer
creation and distribution from
marketers to consumers
through email and social
networks platforms.
Customer relations is the base
of any business’ operations,
whether it’s face-to-face in a
store or through technology
s o l u t i o n s k n o w n a s
“CRM” (Customer Relations
Management) systems.
Creating offers and managing
customers has little value if a
transaction can’t be completed
between buyer and seller. Convenient,
mobile “payment gateways” are
required for marketers and consumers
to “shake hands” and complete deals.
Mobile Tech
Social
& Local
Mobile
Marketing
RewardDriver™ brings these
three key components together,
makes it easier for marketers and
consumers to connect, while
providing valuable data and
analytics that can turn everyday
consumers into loyal customers.
6. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
“PAYMENT DATA MATTERS MORE THAN PAYMENT FEES”1
VALUABLE ANALYTICS
1 Alex Rampell, TechCrunch, Saturday, August 18th, 2012
[simple analytics interface can be custom designed]
Find value in data, not just the purchase.
• Understand the shift towards a cashless society.
• Find places where businesses and customers can
find value, e.g. being rewarded for their loyalty.
• The Who/What/When/Where/Why & How can and
should be measured where appropriate.
• RewardDriver™ provides the ability to track a
payment all the way back to its source,
• In other words, it “closes the loop”.
7. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
MEET THE TEAM
Colin MacDonald, President & Founder
• Seasoned entrepreneur with over 20 years experience consulting throughout North America at Board and
Executive levels for Accenture, Best Buy, ICBC, Oracle and Vancity.
• Specialist in mission critical financial systems and high volume transaction processing, having been a hands-
on Senior Consultant to Sears, Shoppers Drug Mart, Yahoo, Rogers, Future Shop and Kal Tire.
Anthony Charles – Chief Technical Officer & Co-founder
• 15 years experience designing and building large-scale projects for international portfolio of clients, including
Sesame Street, Ninth House, Motorola and Citigroup.
• Multimedia developer, interactive designer, programmer, teacher and UIX expert.
Joel Flynn – Chief Information Officer & Co-founder
• Innovator in digital technologies, with 10 years of teaching and applied research experience.
• Developed industry-academic co-op programs for SFU’s School of Interactive Arts & Technology, based on
virtualized remote collaboration technologies and the importance of innovation in mobile and digital media.
EXPERIENCED MANAGEMENT
8. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
CURRENT TRENDS, STATISTICS, & BUSINESS MODELING
RETENTION IS THE NEW ACQUISITION
™
RewardDriver
MARKET RESEARCH
• Social & Local:
Refocus, Reframe, and Retain Customers.
• Mobile Marketing:
Embracing Mobile Connectivity.
• Mobile Technology:
Making Transactions Easy.
Mobile Tech
Social
& Local
Mobile
Marketing
R
The three core components of the RewardDriver™ business
model are based on extensive research in digital innovation and
design that has emerged from SFU’s Beedie School of Business
and the School of Interactive Arts & Technology (SIAT).
9. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
FOCUS ON RETENTION, NOT JUST ACQUISITION
Meanwhile, Forbes identified sizeable opportunity for business
owners who have yet to implement or fully develop loyalty
programs of their own.
loyalty programs in total
Only 8 programs actually
used per household, per year
2 BILLIONIn 2011, loyalty programs generated:
18 different loyalty
program memberships per
U.S. household.
According to Flowtown, acquiring a new customer is 6 TIMES
more costly than retaining a current one. This underscores why
loyalty programs are such a powerful way to boost profits.
In 2015, they are projected to generate:
$300 MILLION
$1.7 BILLION
Today’s consumers are smarter, more empowered, and better connected than ever before. With competitors only a few
clicks away, few businesses are truly “THE ONLY GAME IN TOWN” anymore, which makes attracting and retaining
customers infinitely more challenging.
Social
& Local
10. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
MAKEITEASYFORCUSTOMERSTOBUY
It may come as a surprise to learn how many business
owners still in 2013 do not accept credit card payments.
Accepting smartphone payments is another way to remove
friction from the sales process.
of smartphones released in the latter half
of 2012 can accept mobile payments.
smartphones were shipped
in 2012
will be shipped in 2013.
100
MILLION
95%
$100 BILLION
Even with the technology in place, non-acceptance
of credit cards results in
in lost revenue annually.
If your business doesn’t offer mobile payments or redemption, now may be the time to jump in.
of America’s 15 million businesses don’t take credit cards.55% 285
MILLION
Social
& Local
Mobile
Tech
11. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
EMBRACE MOBILE MARKETING
$8.4 Million
$37 Billion
In 2012
In 2016
821
million
Mobile has evolved into the next big marketing channel,
thanks to an ever-growing audience of device owners.
Accordingly, eMarketer projects mobile advertising will
skyrocket by as much as 400% over the next 4 years:
In the battle to find and retain customers, it’s becoming critical to establish a mobile presence and firmly
integrate mobile technology int your overall marketing strategy to engage customers on their own terms.
are projected for sale in 2013.
In total, more than $1 TRILLION in purchases from mobile
devices are expected by 2017.
smartphones and tablets were
purchased globally in 2012.
MORE THAN
1 BILLION
Social
& Local
Mobile
Marketing
Mobile
Tech
12. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
INTEGRATED VALUE CHAIN FROM BUSINESS TO BRAND TO CONSUMER
CASE STUDY
Figure adapted from Digital Coupon Landscape in blog.360i.com
OUTSIDE SERVICE
PROVIDERS FOR:
Digital Coupon Landscape
BUNDLED SET OF
IN-HOUSE TOOLS:
Digital Coupon Landscape
CUSTOMIZED REWARDS
FOR MOBILE CONSUMERS:
Blogs
Websites
Email
Digital FSI’s
Loyalty cards
Banners
Aggregators
SMS/MMS
13. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
INTEGRATED VALUE CHAIN FROM BUSINESS TO BRAND TO CONSUMER
CASE STUDY
Figure adapted from Digital Coupon Landscape in blog.360i.com
OUTSIDE SERVICE
PROVIDERS FOR:
Digital Coupon Landscape
BUNDLED SET OF
IN-HOUSE TOOLS:
Digital Coupon Landscape
CUSTOMIZED REWARDS
FOR MOBILE CONSUMERS:
Blogs
Websites
Email
Digital FSI’s
Loyalty cards
Banners
Aggregators
SMS/MMS
14. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
INTEGRATED VALUE CHAIN FROM BUSINESS TO BRAND TO CONSUMER
CASE STUDY
Figure adapted from Digital Coupon Landscape in blog.360i.com
OUTSIDE SERVICE
PROVIDERS FOR:
Digital Coupon Landscape
BUNDLED SET OF
IN-HOUSE TOOLS:
Digital Coupon Landscape
CUSTOMIZED REWARDS
FOR MOBILE CONSUMERS:
Blogs
Websites
Email
Digital FSI’s
Loyalty cards
Banners
Aggregators
SMS/MMS
15. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
INTEGRATED VALUE CHAIN FROM BUSINESS TO BRAND TO CONSUMER
CASE STUDY
Figure adapted from Digital Coupon Landscape in blog.360i.com
OUTSIDE SERVICE
PROVIDERS FOR:
Digital Coupon Landscape
BUNDLED SET OF
IN-HOUSE TOOLS:
Digital Coupon Landscape
CUSTOMIZED REWARDS
FOR MOBILE CONSUMERS:
Blogs
Websites
Email
Digital FSI’s
Loyalty cards
Banners
Aggregators
SMS/MMS
16. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
INTEGRATED VALUE CHAIN FROM BUSINESS TO BRAND TO CONSUMER
CASE STUDY
Figure adapted from Digital Coupon Landscape in blog.360i.com
OUTSIDE SERVICE
PROVIDERS FOR:
Digital Coupon Landscape
BUNDLED SET OF
IN-HOUSE TOOLS:
Digital Coupon Landscape
CUSTOMIZED REWARDS
FOR MOBILE CONSUMERS:
Blogs
Websites
Email
Digital FSI’s
Loyalty cards
Banners
Aggregators
SMS/MMS
17. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
WHAT DOES REWARDDRIVER™ OFFER
OUR SERVICES
• Control: Merchants choose how and when to
create and distribute offers, and get all the data!
• Trackable: Unique offer codes keep promotions
in check, allowing merchants to do real-time
monitoring, analytics, and adjustments.
• Case Example: TapIn Solutions LLC.
➡ U.S.-based golf marketing company has integrated
RewardDriver™ into its customer relations (CRM) and
content management (CMS) systems.
➡ TapIn’s CRM now calls out to RewardDriver™ DMS so
offers can easily be pulled into regular email
newsletters and website updates.
“Deal drop” widget is now integrated
directly into TapIn’s email interface
18. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
• Customization: Show off your own brand identity
(not 3rd-party deal providers, e.g. Groupon)
• Ready-to-use: Sign up for a merchant account
and start building, deploying, and tracking offers.
• Add value to CRMs: Integrate into existing
Customer Relations Management systems.
• Simple process: Easily create exclusive offers
and send them out using only a couple clicks to
send by email or through social media.
• Immediate Revenue: Funds are deposited into
PayPal merchant account as purchases happen.
WHAT DOES REWARDDRIVER™ OFFER
OUR SERVICES
19. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
QUALITATIVE BENEFITS, COMPETITIVELY POSITIONED
BUSINESS MODEL: WIN-WIN
1 Source: “Sell unwanted Groupon coupons on Hub co.’s website”, Boston Herald.com, June 27, 2012
RewardDriver™ Approach Competitor Approach
Merchants
Merchants partner with RewardDriver to access
its proprietary deal management software; tool
increases revenue and provides wealth of data
Merchants use platforms, but must share revenue
from already heavily discounted deals, thereby
decreasing profit margins
Customers
Customers invest a minimum amount (e.g. $1.00)
to buy a promotion; maximum loss if customer
chooses not to use the coupon for any reason.
Customers buy deals and may lose investment, if
they can’t use the coupon on time; an estimated
30% of such coupons are not exercised 1
Providers
RewardDriver gets access to large permission-
based email customers, with high response
rates, increasing potential transaction revenue.
Competitors share revenue with merchants, but
response rates of non-permission based lists are
low, and risk of fraud and spamming high
20. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
QUANTITATIVE BENEFITS
MERCHANT BENEFITS
Plus Full Ownership Of Data - And Full Control Of Content
RewardDriver™ Approach
to Loyalty Programs
RewardDriver™ Approach
to Loyalty Programs
Competitor Approach for New
Customer Acquisition
Competitor Approach for New
Customer Acquisition
Retail Price Regular Price $100 Regular Price $100
Discount “Purchase Outright” Online Price $80 Price after Coupon $80
Fees
RewardDriver™ Merchant
Transaction Fee
$1
% of sale to the deal provider
e.g 50% $80x50%
$40
Proceeds Net to Merchant $79 Net to Merchant $40
Analytics Transaction Data Yes Transaction Data No
21. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
QUANTITATIVE BENEFITS
CONSUMER BENEFITS
RewardDriver™ Approach
with “Purchase Outright”
RewardDriver™ Approach
with “Purchase Outright”
RewardDriver™ Approach
using “Dollar Down” fee
RewardDriver™ Approach
using “Dollar Down” fee
Retail Price Regular Price $100 Regular Price $100
Discount “Purchase Outright” Online Price $80 Exclusive Limited Offer Price $80
Fees
RewardDriver™ Merchant
Transaction Fee
$1 RewardDriver™ “Dollar Down” Fee $1
Proceeds Remaining to Complete the Deal $79 Remaining to Complete the Deal $79
Analytics $ Risk to the Customer $80 $ Risk to the Customer $1
The customer only risks $1 in the “dollar down” model, but may lose out to the outright purchase.
22. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
FREQUENT SENDER? OR JUST STARTING OUT? WE OFFER A RANGE OF OPTIONS
PRICING MODEL
Pay Monthly
[with full-year subscription]
Cost Pay Per Campaign
[no monthly contract]
Cost
Basic
• 1 campaign per month (monthly)
• Custom Rewards with One-Time Discount Codes
• Integration with RewardDriver CRM
• Integration with RewardDriver Online Store
• Customer Email Notifications
• Email Support
$9.99/m
• 0-500 recipient limit per campaign
+ selected features from the Basic Plan.
$9.99/each
Pro
• up to 2 campaign per month (bi-monthly)
• All the benefits of the Basic Plan as well as...
• Ability to Import/export your own customer lists
• Create and integrate your own FAQ Page
• Professional-level analytics and reporting
$19.99/m
• 500-2000 recipient limit per campaign
+ selected features from the Pro Plan.
$19.99/each
Enterprise
• up to 4 campaign per month (weekly)
• All the benefits of the Pro Plan as well as...
• Custom branding and implementation support
• SDKs (Python, Ruby and Java)
• email and 24-hour phone support
$49.99/m
• 2000+ recipients per campaign
(unlimited) and full platform features.
$49.99/each
Try RewardDriver™ free for 30 days without a credit card. // After your trial ends, pick a plan that best fits your needs.
23. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
COMPARISON OF COMPETITOR MODELS
COMPARISON OF COMPETITOR MODELS
MERCHANT GETS:
Full Revenue
from Deal
Contract
User Data
Provided
Detailed
Analytics
Targeted
Audience
Build and Own
Campaigns
Content
Control
RewardDriver™ Yes No Yes Yes Yes Yes Yes
CompetitorsCompetitorsCompetitorsCompetitorsCompetitorsCompetitorsCompetitorsCompetitorsCompetitors
Agency Custom Custom Custom Custom Custom Custom Custom
Coupons Inc. No Yes No No No No No
Groupon No Yes No No No No No
Facebook No Yes No Yes Yes Yes
Living Social No Yes No No No No No
Twitter No Yes No Yes Yes No No
Source: Management estimates.
24. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
CHANNEL PARTNERS
SALES STRATEGY
• TapIn Solutions LLC with ~ 4,000 golf courses is
the first RewardDriver™ vertical partner.
• MashPotato with ~ 300 - 500 Restaurants
• Uniserve with ~ 5,300 SME’s
• Management is pursuing partners in five other
industry verticals.
• Pipeline includes major companies in service,
retail, fitness and sports.
Golf & Resort Industry
Sports & Entertainment Industry
Retail & Specialty Chains
Restaurants
Nutrition & Fitness
Service
25. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
FOR MORE INFORMATION....
THANK YOU!
Colin MacDonald, President
RewardDriver
778.882.1767
26. RETENTION IS THE NEW ACQUISITION!
Increase revenue by rewarding your best
customers and their friends. Our “Do-It-Yourself”
cloud-based tools make loyalty marketing easy.
egain Revenue & Control
➡ Don't let deal promoters waste away your time and
revenue on bargain hunters and coupon clippers.
➡ Target real interest and full-paying customers. Use
your own terms and easily craft your own offers.
➡ It's your deal! It’s your revenue! We provide the tools,
but we don’t take a cut or tell you when to run deals.
Easily create compelling promotions and share
them through your own email, website, and social
media channels. Let loyal customers feel valued
and they’ll do the same with their friends!
ewards & Referrals
➡ Coupons are fine for bringing in new customers, but
what’s the point if they don’t stick around?
➡ Show customers value, and they’ll return and spend
again. Better still, they'll bring their friends!
➡ Reward your best with exclusive, limited deal offers
they can easily share and gift to friends.
RewardDriver™ is a flexible turn-key solution for
merchants of any size. Franchise? Retail chain?
“Mom & Pop” operation? We have the tools for
your e-commerce, email, and mobile strategies.
eal Convenience
RewardDriver™ gives loyal customers and referred buyers
two options to get in on exclusive deal offers:
1) Complete the deal online by paying in full;
2) Grabbing a Discount Key* for $1 lets customers
unlock future savings at their convenience.
*applied at purchase, subject to availability/terms
+
➡ Easily create, re-use, and monitor compelling offers through the
RewardDriver™ deal management system (DMS).
➡ Comes with built-in simple-to-use CRM and data entry features.
➡ Build your customer database and client lists right from your admin pages
at the www.rewarddriver.com website.
➡ Import your own customer email lists and send targeted offers to loyal
customers who help influence others to purchase.
➡ Optional “dollar down” convenience fee allows you to filter out noise from
meaningless “likes” and uncommitted buyers.
➡ Use Discount Keys to allow customers to self-identify interest.
➡ Integrated PayPal system allows for secure collection of sales revenue
while accepting all major credit card transactions.
➡ Post offers to your Facebook wall to socialize your promotions and allow
your best customers to share with their friends.
➡ Create “on sale” and “valid until” dates through a flexible offer scheduler
with in-day scheduling by the hour and half-hour.
➡ Notify key customers about exclusive offers directly to their mobile phones
with personalized SMS text messages features.
➡ Add your own images, descriptions, terms and conditions.
➡ Use “add-ons” to create incentivized purchase gateways, linked
transactions, as well as customizable membership rewards.
TOOLS
TOOLS
TOOLS
RewardDriver™
27. RETENTION IS THE NEW ACQUISITION
™
RewardDriver
[OPTIONAL SUB-HEADING]
• High-Growth Market Opportunity
• Enterprise Platform Technology
• Partner & Direct Sales Strategies
• Company History and Management
• Financials Demonstrate High ROI
• Next Steps
• Questions & Thanks
INVESTOR HIGHLIGHTS