Merchant sales deck 1 28-12

Keep Your Customers Loyal

Loyalty Rewards Your Best Customers.

Confidential and Proprietary ©2011-2012 Gigway, Inc.

On Average 15% of your customers drive 50% of your

revenue/profits.

By increasing your loyal customer base by just 5%, you can lift your

revenue by 60% - 100%

Loyalty Costs Less

The Golden Rule of Customer Acquisition

Loyalty Drives Profits

On average 15% of customers are loyal to a single retailer

Imagine what the impact would be to your profits if you increase that 15% number.

In the book “The Loyalty Effect,” it is suggested that increasing your loyal customer base by 5% can double your profits.

85%

15%

Loyal Customers

50% 50%

Disloyal Customers

Those consumers generate 50% of company’s profits or more!

So, What’s The Problem?

Acquiring Customers Is Expensive.

Keeping Them Loyal is Difficult.

Local Retailer

Stop The Madness!• Expensive:

• Search Engine Optimization, Pay Per Click, Print, Direct Mail, Email Marketing, and Daily Deals are all expensive and complex with mixed results.

• Difficult and Time Consuming:• Paper punchcards (no data or

re-marketing capability to the consumer)

• In-store hardware (install and maintain)

• POS systems (train/maintain)• Pushing rebates on consumer

credit cards (high friction with consumers)

• QR Code Scans (high fraud)

Welcome To…

Customer Loyalty Made Easy.

Four Simple Steps

1) Shop 2) Verify 3) Collect 4) Cash Out

Shop at the places you love.

Take a photo of your receipt to

verify your purchase.

Collect “punches” on

your punchcard.

Cash Out when you’ve earned

enough punches.

The consumer is in and out of the app in less than 10 seconds to get credit for their loyalty.

Punchcard verifies purchases andgathers valuableshopping datasimultaneously.


Punchcard features 0ver 147k merchantsin Southern California starting Dec. 1, 2011


Our Electronic Punchcard makes earning rewards easy & fun!


Full nameGender Public Facebook URLDate of birthInterestsRelationship statusProfile picture

Know Who Your Shoppers Are

Facebook has more than 800 million active usersMore than 350 million active users currently access Facebook through their mobile devices


Twitter loyalty

• Full Name• Gender• Date of birth• Interest Keywords• Relationship Status• Photograph

• Wordpress• Blogger• LiveJournal• Twitter• Any XFN or FOAF

enabled website

• Personal shopping hotspots

• Products they purchased

• Money spent per category

• Level of brand loyalty• Repeat visitor frequency

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.

VentanaThe Window To Your Customers

“What’s measured, improves.”-Peter Drucker, Economist


See Your Customers Like Never Before

Segment Customers On Purchase Behavior

Create Offers in a Snap

Market To Groups Or Individuals

Actionable Transactions

Acquire New Customers Who Are Nearby

“eCRM” Made Easy

Pretty cool…So, how do you get all of that data in there?

Merchant Success Kit

Kickoff Materials:– Send an email to your mailing list inviting them to

the “event” of joining their rewards program.– Tweet offers in Punchcard– Facebook offers in Punchcard

(Front) (Back)

(Front) (Back)

Pricing

NOTE: Pricing is per locationConfidential and Proprietary ©2011-2012 Gigway, Inc.

FEATURE Punchcard Enhanced

PunchcardLite

Virtual Punchcard Yes Yes

Ventana Online Merchant Dashboard

• Summary view of customer engagement Yes No

• Customer grouping and sorting Yes No

• Customer filters & triggers Yes No

• In-app customized offers & notices to customers Yes No

Optional 20% discount for annual pre-pay of fee Yes No

Upgradeable to the Enhanced Plan No Yes

Merchant Support Phone / Email Email

Cost / Location / Month $99 $29

Easy Breakeven

Breakeven Analysis % $ #

Average Order Amount: ----- $20 -----

Cost of Goods Per Order: 60% $12 -----

Gross Margin: 40% $8 -----

Gigway Monthly Platform Fee: ----- $99 -----

# of Sales/Month Needed to Breakeven: ----- ----- 12.5

$ Amount of Sales/Month to Breakeven ----- $250 -----


EASY ROI

ROI Calculator % $ #

Completed Punch Cards per Year: ----- ----- 100

Average Order Amount ----- $20 -----

# of Purchases per Punchcard ----- ----- 10

Gross Revenue Generated from Punchcard ----- $20,000 -----

Cost of Goods Per Order 60% $12 -----

Expense for 100x Gift/Cash Cards (@ $20 ea.) ----- $2,000 -----

Gigway Monthly Platform Fee ----- $99 -----

Gigway Annual Platform Fee ----- $1,200 -----

Gigway Fee + Cost of Punchcard ----- $3,200 -----

ROI (Gross Revenue Less Gigway’s Fees & Punchcard Cost) 625% $16,800 -----


Thank You.Joe Semerdjian130 W. Union St.

Pasadena, CA 91103626.229.7828

http://www.punchcard.com

http://www.punchcard.com/

Punchcard is an Idealab CompanyIdealab was founded in Pasadena, CA in 1996 and is based at 130 West Union Street, Pasadena, California. We are one of Pasadena’s best and most successful companies.

We are of the most successful technology accelerators / Incubators in the USA and has funded, collaborated and launched many companies with a combined value in the billions of dollars. Here is a sample of the companies Idealab has successfully built and launched:

Loyalty Rules

1. Make it easy to engage. And engaged customer is less likely to defect.

2. Create "motion and commotion. Don’t compete on price alone.

3. Segment & target your best customers. Identify new sources of revenue.

4. Focus on your brand. It is, after all, why your customers are there.

5. Customize the benefits. Make them personal – and relevant.

6. Show gratitude. Thank customers for doing business with you.

7. Reward Customers for saying good things. Good word of mouth starts with loyalty.

8. Make it fun. Nobody wants to have to work at being a good customer.

9. Keep in contact. With both existing and past clients on a consistent basis.

10. Give to get. Be proactive to build an affinity relationship with your customers.

Business

Merchant sales deck 1 28-12