Transcript
In-store Intelligent CRM
Yukai@RewardMe.com714-273-7088
REWARDME.COM
WHO WE AREYu-kai Chou (CEO): 6 years entrepreneur experience; Co-Founder/CEO of Viralogy and FDCareer; Regular Lecturer/Speaker on Geolocation and Gamification at Stanford, Google, and various VC/Entrepreneur gatherings; BA from UCLA.
Adam Gervin (BusDev): Entrepreneur with $1 Billion in Exits. Co-Founder of OneBox.com (sold to OpenWave ), VerdiSoft (sold to Yahoo!), Caustic Graphics (sold to Imagination), SEVEN Networks (profitable and #2 after RIM). MD from Stanford and BS from Yale.
Stephen Johnson (Product): 15 years of programming experience. CTO of Viralogy and FDCareer; Lead Developer at Bunchball, a gaming mechanics startup ($2M in revenue within 1 year with customers like NBC, P&G, Victoria’s Secret). BA & BS from UCLA.
Jun Loayza (Marketing): Co-Founder of SocialMediaMarketing.com of SEOP. Grew to $12M in revenue with customers like LG, Levi’s, and Activision. CMO of Viralogy and FDCareer. Cofounder of Untemplater (sold to Financial Samurai). Hired, trained, and managed a 25-person sales team. BA from UCLA.
Our story of learning, pivoting, and achieving product/market fit (and a
$1M contract)
In 2010, we conceptualized the concept of using a smartphone to
replace punch cards
Within 3 months, we quickly launched an iPhone/Android App
that scanned QR Codes
We were the earliest in the market with that model
LOL...
We learned that one person going door-to-door, we could quickly get 70 stores to
sign-up in Silicon Valley in 2 months
In Mountain View, and Palo Alto, it seemed like we were all over the place
Many tech savvy foodies loved us and some wrote blogposts about us
It seemed so promising that we raised around $1M from private angels and
TeleNav.
We were early. We could get into stores quickly with more foot soldiers. Tech
users loved our product. We were excited.
But....We also knew there were
many problems
Our product wasn’t creating disruptive, nor measurable value for the store
Only a small % of store users can/will sign upOur product could not record purchase
amount WITHOUT affecting operationsCustomer Support for these stores were awfulSaturating local markets lead to a dead-end
Problems
Essentially...we were selling the wrong product to the wrong customers
Judgement Call:1. Ignore these problems and continue our momentum in getting more stores and raise more funding (This is what everyone in the market is doing)
2. Go back to the drawing board and actually create a product that actually can be a market winner
Startup Genome Project: #1 reason startups fail is premature scaling
Changing our model after being in thousands of stores would be a nightmare
We had to decide NOW
Both?
New Company Thesis:❖ The market will be won by those who tackle the
hard problem of selling into chains❖ Domino Effect: large chains are slow adopters but
fast followers❖ Large chain traction will trickle down to small
stores nationwide❖ Large chains have an entirely different set of
requirements (ROI, Data, etc.)
We relaunched at the end of 2011 with a MUCH better product that satisfies chain
store requirements...
REWARDME.COM
1) Sign up every guest
2) Capture detailed data (and lots of it!)
3) Without interfering with speed and business operations
STEP 1: ACQUIRE
How?
REWARDME.COM
Collect real-time purchase data from any Point of Sale system
Guests join with just a phone number(Currently acquiring between 20-40% of
ALL daily guests)
STEP 1: ACQUIRE
Put iPads into stores to run their rewards program
REWARDME.COM
Target guests based on usage filters (spend, visit frequency)
Target guests based on demographic filters (has kids, income > 100K)
STEP 2: ANALYZE
REWARDME.COM
Auto-Triggered Messages via
STEP 3: ACTION
1) In-Store Screen2) Mobile SMS/Push
Based on
1) Purchase Preferences2) Demographics3) External Environment
RECAP
RewardMe reads receipts from ANY POS And acts in store, on the web, and on your phone
Analyzes, interprets, and prepares the data for consumption
REWARDME.COM
27.58% of ALL purchases
(up to 51%)
116,000 Check-ins
(from 66,264 Users)
64% Check-ins from Repeat Users
Based on 20 Stores for 7 months (120 more signed up)Result
33% Users Opt-in to SMS
Marketing
REWARDME.COM
66%Revenue Lift
on day ofSMS Push
5.7% AOV difference is
provable Lift
Provable 2% Bottom-Line Revenue Lift
($20K/yr)
Result
RewardMe users buy 20.5% more
Based on 20 Stores for 7 months (120 more signed up)
REWARDME.COM
10x Better SolutionName Users Duration
(mo) Locations Users/Location Redeems
RewardMe 66,000 6 20 3300 10,111
Belly Card 200,000 12 1500 133 14,000
Five Stars 250,000 15 700 357 NA
Compared to “the best” in the market
REWARDME.COM
Business Model
Stores pay for hardware (and
installation)
Monthly Service Fee per location (feature-based)
SoLoMo Targeting
Mobile PurchaseCommissions
REWARDME.COM
Evaluation
Negotiations
PilotFull Rollout
Pipeline
REWARDME.COM
90 Locations
Hardware & Installationcovered
$500-$1000/mo per location
$1 Million+ Contract
$1,080,000/yr Revenue
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Series A Funding• 2012: Raise $5M to scale up business
• 24 months runway
• Spending Plan:Marketing/Bizdev: $2,000KTech/Infrastructure: $1,700KAccount Management: $800KGeneral/Admin: $500K
Mooyah loves RewardMe!
and we know you will too
Yu-kai Chou
714.273.7088
Yukai@RewardMe.com
1. HUGE Market
2. Experienced/Successful Team
3. Product Leadership
4. Success in Enterprise sales
Summary
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