RME Deck

In-store Intelligent CRM

[email protected]

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...

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STEP 1: ACQUIRE

How?

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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?

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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 In Store

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Target guests based on usage filters (spend, visit frequency)

Target guests based on demographic filters (has kids, income > 100K)

STEP 2: ANALYZE

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STEP 2: ANALYZE

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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

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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

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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)

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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

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Business Model

Stores pay for hardware (and

installation)

Monthly Service Fee per location (feature-based)

SoLoMo Targeting

Mobile PurchaseCommissions

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Evaluation

Negotiations

PilotFull Rollout

Pipeline

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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

[email protected]

1. HUGE Market

2. Experienced/Successful Team

3. Product Leadership

4. Success in Enterprise sales

Summary