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Kirk Brown Jon Fedders Deika Morrison Sanyo Shamsunder

ConvirGo. Points and Payment at your fingertips. Kirk Brown Jon Fedders Deika Morrison Sanyo Shamsunder. ConvirGo: Portal and Mobile Transactions. Value Proposition: Customer. Convergence

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Kirk Brown Jon Fedders Deika Morrison Sanyo Shamsunder

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  1. ConvirGo Points and Payment at your fingertips Kirk Brown Jon Fedders Deika Morrison Sanyo Shamsunder ConvirGo - Brown, Fedders, Morrison, Shamsunder

  2. ConvirGo: Portal and Mobile Transactions ConvirGo - Brown, Fedders, Morrison, Shamsunder

  3. Value Proposition: Customer • Convergence • Proprietary secure software will capture all relevant membership and points/rewards balance and transaction information. • Convenience • A single point of access to all loyalty/rewards programs through a web portal accessible via computer or mobile • No need to login to multiple sites to compare and contrast offers • No need to carry multiple loyalty/membership cards • Choice • At point of use, mobile access to select the best offer from the various loyalty programs enrolled in • Conversion • One touch redemption of best offer via SMS • With Convergence, Convenience, Choice and Conversion, real savings are at your fingertips. ConvirGo - Brown, Fedders, Morrison, Shamsunder

  4. Value Proposition: Companies (Brands/Retailers) • Customer Loyalty • Greater value to customer results in greater loyalty. Value results from the ability to access real savings in a convenient manner that converges loyalty programs to provide choice prior to conversion/redemption. • Insights into customer behavior and competitive position • Co- and additional branding opportunities • Efficiencies/Cost Savings/Greater Utilization of existing marketing/branding resources • Industry spends $70 B in printing/delivering coupons • Portal provides additional avenues for advertising to a captive audience, and viral effects due to social network • Rapid launch with maximum reach, at minimum cost ConvirGo - Brown, Fedders, Morrison, Shamsunder

  5. Voice of Customer Survey of over 100 people conducted Over 65% belonged to more than 5 different loyalty programs Over 30% belonged to over 10 Over 75% were likely to very likely to use cell phone for loyalty program tracking Over 65% were willing to spend over $100 using a cell transaction; almost 40% willing to spend more than $1000. Voice of Partner Potential Corporate Partners showed great interest Mastercard CapitalOne Benchmarking of how existing companies handle loyalty programs From Credit cards to Supermarkets Market Research ConvirGo - Brown, Fedders, Morrison, Shamsunder

  6. Competitive Landscape Closest Competitor: CellFire - a “ValPak” replacement • Lacks convergence • Lack of potential for cross promotions and social networking ConvirGo - Brown, Fedders, Morrison, Shamsunder

  7. Financial: Potential Revenue Streams • Current Revenue Model: Fee Based • Partner fees (long-term, for alliance with the portal) • Transactions fees of $0.05/transaction: Paid by Corporate sponsors • Conservative: • Reference Obopay $0.10/transaction • Mailed coupons cost $0.25/each • Customer Membership fees • Free access for basic account (covers 8 loyalty programs) • Premium Upgrade ($0.99/month): Unlimited loyalty programs, Paid by individual consumers ConvirGo - Brown, Fedders, Morrison, Shamsunder

  8. Financial: Key Assumptions • Time Horizon: 5 years • Regression model and real credit card data set used to extrapolate value and number of transactions • Market Share (US only): Less than 4% in 5 years • Discount rate = 60% • Costs included: Portal Hosting and Development, Security, Advertising, Sales, Ongoing Development, Database mgmt • Potential Upside: • Annual growth rate above 50% or Market penetration above 4% • Alternative Revenue streams kick in (not counted): • Ad-Based • Click-through • Redemption Fees (Corporate/Consumer) for Loyalty programs ConvirGo - Brown, Fedders, Morrison, Shamsunder

  9. Financial: Investor Basics • Equity Stake • Initial Investment Required: $0.1 million • Percentage of Company Purchased: 10% • NPV of share of Net Income (5 years): >$1.13 million • ROI (through 2009): 1131% • Assuming terminal value of 5x net income: • Discounted at 60% • 10% stake = $0.8 million • PV of 0.1 million investment in ConvirGo: $1.93 million ConvirGo - Brown, Fedders, Morrison, Shamsunder

  10. Final Say: Next Steps • Next Steps: • Develop and Launch Web-based Portal • Technology platform development completed • Identify strategic corporate partner(s) • Marketing to create “Buzz” • Decision Requested: • 100,000 for 10% stake in ConvirGo ConvirGo - Brown, Fedders, Morrison, Shamsunder

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