Turn Fans into Customers

Presented by: Brad HeureuxFor:15 Million SMB’s

Businesses are challenged • Have email lists…

• Have Social Community fans on

facebook, Instagram, Pinterest,

Twitter, YouTube…

• Have mailing lists…

• Spend Advertising Dollars

But no tie to purchase data

But don’t know who bought what or

how frequently and don’t have direct

marketing opportunities to fans.

But don’t know which customers are

the most profitable

Cant see the results and don’t have a

1 to 1 marketing tool.

Difficult to effectively manage business and not lose customer to more convenient shopping methods!!!

Punchcard is a mobile shopping app

where consumers earn rewards

everywhere they shop.

Introducing Punchcard

Each receipt from anywhere you shop is your “ticket to win.”

Reward Users: Engaging and Fun Promotions

1) Shop 2) Verify 3) Collect 4) Reward

Shop at the

places you

love.

Take a photo of

your receipt to

verify your

purchase.

Collect

“punches” on

your punchcard.

Each “punch”

enters you into a

drawing to win and

get rewarded!

Consumer Personalization: It’s About You

• The “Home Page” in the app

is centered around the user.

• Shows user’s latest activity /

punches

• Easy button to start the

punch process.

• Shows personalized stats,

and creates incentives to

personalize the app further.

Local Search and Discovery• Works at 15 million locations

• Path to purchase tracked from

search to buy locally across

categories and geos.

• Targeted messages are

strategically placed to drive new

revenue opportunities.

• Points create an incentive to drive

users to sponsored locations.

• User data is tracked for further

personalization and target-ability.

The Retailer’s Custom Punch Card• Retailers create their own business

rules regarding how they want to

incent and reward their customers.

• Retailers can create an incentive for

users to share their business on

Facebook and Twitter or via email to

friends.

• Retailers can promote their special

offers.

• Publishers can sell conquest or

nearby offers against specific

businesses.

• User’s stats are shown below the fold.

Users can recall any

receipt captured by

tapping any previous

punch driving utility

for the consumer so

they don’t have to

look for old receipts.

Great for tax

purposes and for

finding old receipts

Consumer: Immediately rewarded (behavior is re-enforced)

Merchant: Decreased repeat purchase cycle time

Outcome

Punch… Spin… and Win!

Customer Converts and Punches!

HOW PUNCHCARD WORKSFOR MERCHANTS

Top concerns for businesses

Source: emarketer.com

Finally…Social Graph + Purchase Behavior

for Brick and Mortar!

…or Manual Registration

The Value of An Existing Customer

Number of times more costly it is to acquire a

new customer than retain an existing one

Amount customer attrition rates can reach if not engaged over a 5 year

period

Amount of increased profits that come from boosting

customer retention by as little as 5%

Source: Frederick Reichheld, Bain&Company, The Loyalty Effecthttp://www.businessfast4ward.com/small-business-marketing-strategies-customer-retention-vs-customer-acquisition/

See Your Customers Like Never Before

Automated Mass Targeted Offers

Market To Groups

Market to Individuals

Messages get created in

the retailer’s dashboard,

and get pushed to user’s

phones.

Messaging System

It Just Works

• No integration with your POS• No hardware needed• No sales staff training• No upfront costs• No maintenance• Consumers don’t need to connect

credit cards to earn rebates.

NO UPFRONT ANYTHING!!

Spend:• $59 per punch on

Apparel• $34 per punch on

Books• $46 per punch on

Entertainment• $36 per punch on

Health and Beauty• $49 per punch on Pet

Supplies

PunchcardUsers in

Pasadena

Are:• 50.7- men• 49.3- women• 43.6%- married• 26.7% - single• 24.7% - in a

relationship• .7%-

divorced/widowed

• 4.4% - engaged

Be the sensemaker of local spending behavior

Chianti

Cosmetics

Spaghetti

Teeth whiteningMovie

Cheese Bread

Magazine

A Champagne RestaurantCase Study

A Champagne Restaurant

• Knew little about customers

• Few were loyal

Before Punchcard• Desired to upgrade their

clientele

• Low AOV (at $39)

A Champagne Restaurant

• Identified their highest

value customers

• Messaged when in

proximity and reached

others that looked like

them

• Increased AOV 60%

• Increased the best

and most profitable

customer base

After Punchcard

Community MarketCase Study

Community Market

• Knew little about customers

• Frequency was low

• Tight geographic footprint

Before Punchcard• Difficult to sell new product

• Low AOV (at $13)

Community Market

• Identified thousands of

customers

• Tripled frequency

• Doubled AOV (at $32)

• Enjoying a robust digital

loyalty program

• Now approaching brands to

place ads in their mobile

Punchcard experience

instead of FSI

After Punchcard

Retail Bakery and CafeCase Study

Benchmark data by category and geo

CategoriesNumber of

Punches

Punches

($)

Percentage of

PunchesMerchants

Average

Punch Value

($)

% Merchants

Apparel 13,968 $832,498 11.6% 1,827 59.6 10.0%

Automotive 10,385 $400,087 8.6% 1,466 38.5 8.0%

Books & Media 540 $18,518 0.4% 101 34.3 0.6%

Cafes 16,225 $205,658 13.4% 2,441 12.7 13.3%

Entertainment & Nightlife 4,921 $226,415 4.1% 683 46.0 3.7%

Food & Drink 37,156 $1,101,740 30.7% 7,000 29.7 38.2%

Games & Electronics 3,033 $237,578 2.5% 498 78.3 2.7%

Gifts 1,151 $53,702 1.0% 236 46.7 1.3%

Groceries 18,970 $628,419 15.7% 1,684 33.1 9.2%

Health & Beauty 6,318 $227,204 5.2% 1,078 36.0 5.9%

Laundry Services 3,798 $237,703 3.1% 492 62.6 2.7%

Liquor & Wine 708 $23,142 0.6% 102 32.7 0.6%

Office Supplies 1,950 $120,096 1.6% 356 61.6 1.9%

Pet Supplies 903 $44,136 0.7% 159 48.9 0.9%

Sports & Recreation 882 $180,832 0.7% 198 205.0 1.1%

Grand Total 120,908 $4,537,728 100.0% 18,321 37.5 100.0%

Average order at cafes in Pasadena = $12.68

Average order at Lovebirds Café = $8.00

Executing strategy

BEFORE: • No marketing• Benchmark of $8 avg

order

AFTER: • Enabled ad campaign in

newspaper• Filtered highest spenders

and messaged to return• Lifted average order to

$11 in just 4 weeks!

Use Case: Big Box Retailers

Target:• 6,688 transactions• AOV $44.96• Total captured: $300,809

Costco:• 2,742 transactions• AOV $92.78• Total captured: $254,404

Walmart:• 2,192 transactions• AOV $49.50• Total captured: $108,496

• Average order: $10.31

• 22% are group orders

• 82% consumers do not purchase in competitors

• Consumers drive average of 5.13 miles from home

address

• Average order: $8.43

• 19% are group orders

• 22% consumers do not purchase in competitors

• Consumers drive average of 3.36 miles from home

address

• Average order: $9.85

• 15% are group orders

• 32% consumers do not purchase in competitors

• Consumers drive average of 2.57 miles from home

address

Use Case – Coffee Shops in Southern California

Use Case – Tune Ups in Southern CaliforniaA major auto retailer asked us to find data about other customers who were purchasing tune ups at their competitor stores. Below is unique data that only Punchcard can capture.

Consumer Data: Where KFC Shoppers Eat

Rank Store % of Purchases Avg Order

1. McDonald’s 11% $10.42

2. KFC 4% $15.82

3. Taco Bell 3% $9.65

4. In and Out Burger 2% $11.93

5. Panda Express 2% $14.19

6. Chipotle Mexican Grill 2% $12.59

7. Jack in the Box 2% $9.49

8. Chick-Fil-A 2% $10.78

9. Burger King 1% $9.74

10. Del Taco 1% $9.05

Universal Average Order for KFC Shoppers - $11.37

Easy to Engage Consumers

Downloads of Punchcard can be driven thru mobile

campaigns with sponsored rewards

Community Integration

Our Industry Awards and Press

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Runner Up Winner

Selected in Startup

Spotlight Series

Industry Press

Industry Recognition

Hand picked to be

In the Startup Garage

Launch v1 Prototype

Launch v2Full Release

Launch v3Spin n Win

Thank You!

Brad HeureuxBMG –Punchcard

215-789-6256 brad@bradfordmediagroup.com