Lockbox – Go To Market
Lock Box – Go To Market
Why Lockbox?
Digital Assets - Protection & Inheritance
Personal ‘Digital Safe Box' Password ManagerAssign BeneficiariesEnables digital Assets transferStore Anything that matters!Backup & Inheritance Guarantee
Lockbox Product PositioningLockBox Offered as OEM (white-label) software
solutionSell as an Auxiliary ProductPair Lockbox with leading Finance/Insurance
providers Leverage Brand and Distribution channel of
Partners
Review RFP from MetLife and our Response
Market Evaluation - MetLife-LockBox Partnership
Partnership Marketing StrategiesCost & Revenue numbers for Next 3
yearsGO / NO-GO Decision on the partnership
Agenda for Today
MetLife-LockBox RFP HighlightsScope
MetLife looking for service providers to empower Digital Asset Management
Goal Make a Difference More Customer Value Added Revenue Generate Sticky Customers
Partnership3 year limited Exclusivity
Functional Expectations Asset Upload Password management Beneficiary assignment. Digital security standard compliance× Legal binding× Mobile access× Auto-sync
MetLife-LockBox RFP Highlights Product Offering
Stand-Alone and Add-on product Marketed under the brand name MetLife Lockbox will have its own microsite under MetLife
Revenue Sharing 30% revenue share to lockbox Branding and marketing cost handled by MetLife Yearly License fee : 500K Additional Support/training fees
Product Pricing Add-On
29.99$ per year for 250GB , unlimited passwords, 10 beneficiaries 49.99$ per year for up to 750GB , unlimited passwords, beneficiaries
Individual Product 69.99$ per year for up to 750GB , unlimited passwords, beneficiaries
SupportSupport & Training to be owned by LockBox
Market Evaluation
LockBox MetLife
• "Awareness” phase of Marketing Funnel
• White box solution • No Brand Marketing required• Acquire market share
• #1 insurance company • Brand Differentiation• Sticky Customers• Increased Revenue
Awareness Very Low
Likeability Unpredictable
Market Share None
Decision Partnership
Awareness High
Likeability High
Market Share High
Decision Extend
MetLife Customer Segment MetLife Loyalty Customers : 0.8 M households MetLife Multiple Insurance holders :2.7 M households
Target Customer Profile Aged 45 and above High Net-worth Individual Policy holders with Maximum value Potential 800K customers
20
20
40
20
Customer Age Pro-file18- 35 35- 4545 - 65 >65
45
25
2010
Customer Income Pro-file
<60K
60 to 100K
100- 250K
250K and above
Hank MarshPersonal48 years old Construction Architect, Family BusinessMarried with KidsNet-worth about 720K Passionate on building design and Interiors
Loyal MetLife customer for 10 years Has Auto/Home/Life insurance Maximum coverage on all his policies Recently Signed up for MetLife Financial planning Prefers High premium - Low deductible policies
BehaviorFear of LossStrong Desire for Disaster Recovery PlanningDesire for Inheritance
Partnership GoTo Market Objectives
Product Awareness
Customer Acquisition
Customer Retention
Partnership Marketing Strategies
Marketing
Channels
Online
Microsite
Social Media
Display Ads
SEM
Email Marketing
Offline
Direct mailing
Catalogs
Advertisements:
AARP Magazines
Display Ads
Drive AwarenessBanner Display Ads Google Ads -
Demographic/Contextual/RemarketingROI :CTR per CPM obtained from Search CPM costs 12$ per 1000 impression (Google)
SEM/SEOSEM
Partner with Google / Bing Generate leads and drive awareness Targeted SEM keywords Revise Strategy based on CTR Rate Smart Bidding : Long Tail keywords Sample SEM Keywords
o Digital Living will, Digital locker o Insure Digital Assets, Digital Inheritanceo Assign Beneficiary ,Preserve digital datao Asset inheritance, LockBoxo Secured Storage, Password manager
Email MarketingDrive Awareness and Generate Leads
Target specific customer segments
Personalized Email : Unique URL and Toll Free number
Mobile e-mail friendly
ROI : Site response view & Click-through Omniture
Retarget based on response
Offline MarketingDirect mail to targeted segments
Full page Magazine Ads by MetLife in AARP
MetLife Catalogues for Lockbox product
Direct CS Sale calls
Marketing Budget BaselineMetLife Home & Auto Customers : 2.7 MillionMetLife Loyalty Customers : 0.8 MillionTotal marketing budget : 7.2 Million USD for 3
yearsBudget for Online spending – 60%Budget for Offline spending – 40%
Q3 2013 Q4 2013 FY 2013 FY 2014 FY 2015 FY 2016
Standalone Sales Revenue $0 $0 $0 $240,000 $456,000 $651,000 Add On Sales Revenue $0 $0 $0 $2,160,000 $4,104,000 $5,854,000 Total Revenue (Margin share) $0 $0 $0 $2,900,000 $5,060,000 $7,005,000 Lockbox License Revenue $0 $0 $0 $500,000 $500,000 $500,000 Hardware and Operations Cost $800,000 $400,000 $1,200,000 $1,200,000 $600,000 $400,000 Development Costs $750,000 $750,000 $1,500,000 $1,800,000 $500,000 $500,000 Brand Marketing Costs $0 $929,000 $929,000 $2,198,000 $2,198,000 $2,198,000 License Fee 0 0 0 $500,000 $500,000 $500,000 Total Cost for LockBox $1,150,000 $2,700,000 $3,000,000 $1,100,000 $900,000
Gross Margin for LockBox(30% revenue Share & License Fee) ($2,200,000) ($1,780,000) $768,000 $1,701,500
LockBox Revenue Projection
Common Revenue from Product SalesCost for LockBox Cost for MetLife
Partnership EvaluationPros Partnering Market Leader – Great Head start Access to a larger Market Segment Total Save on the marketing costs Product awareness to a large customer base Potential open up for new ventures in future
Cons Hardware & Operational cost not shared Customized Developmental costs could be higher MetLife cautiously optimistic on the product Limited Exclusivity with MetLife for 3 years Failure could mean more to LockBox than MetLife
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