1. Advantage Card
U-Experience
Lean LaunchPad Final Presentation – Team 11
Calvin Chen
Mark Grundman
Ria Kapila
# of Customers Consumers Retailers
Day 1 8 4
Day 2 20 0
Day 3 6 6
Day 4 13 2
Total 47 12
Business Type: Startup ?
2. Business Model Canvas
Cost
Structure
- Membership card (create & distribute)
- Website creation
- Marketing
Revenue
Streams
- Direct Sales
- Subscription Fees
- Point of Sale conversion
Key
Partners
- Retail Shops
- Service
Companies
- 3rd Party Social
Networks
- Clubs
- Charities
Key
Activities
- Selling
- Building Website
- Retail Partnerships
Value
Proposition
- Monetary Savings
(Discounts)
- Additional Services
- More Business
(customers)
- Business marketing
Customer
Relationships
- Onboard local
boutique retailers
- Justify need
- Maintain retail
relationship
- Word of mouth
popularity
Customer
Segments
- Boutique Store
Retailers looking
to expand small
business
- Students
- Immigrants
- Females (age 15 -
45) who like to try
different boutique
services
- Customers
>> New to the city
>> Not loyal to brands
>> Money conscious
Key
Resources
- Network of Retail
Stores
- Savings offered
Channels
- Web sales of
Advantage Card
- Retail sales of
Advantage Card
Day 1 Business Model Canvas
4. Business Model Canvas
Cost
Structure
- Advantage card (create & distribute)
- Website creation
- Marketing & advertising
- Overhead costs
Revenue
Streams
- Direct Sales of Advantage card
- Annual Subscription Fees
- Point of Sale conversion
- Add-on Services (customer consumption data, etc)
Key
Partners
- Retail Shops
- Restaurants
- Service
Companies (beauty
related, Spa)
- 3rd Party Social
Networks
- Clubs (Zagat, Open
Table)
- Charities
Key
Activities
- Marketing via 3rd
Party Social Networks
- Card Sales
- Building Website
- Retail Partnerships
- Consumer Partnership
Value
Proposition
- Monetary Savings
(Discounts)
- Additional Services
- More Business
(customers)
- Perks & Benefits to
customers (set by
retailers)
- New & recurring
customers streams
- Less severe margin
erosion for returning
customers
- Business marketing
- Flexibility of promotions
Customer
Relationships
- Onboard local retailers
(restaurants & beauty)
- Justify need
- Maintain retail
relationships
- Consumer awareness
- Word of mouth
popularity
- Ensure ease of use
- Ensure advantages are
honored
Customer
Segments
- Boutique Store
Retailers
- Health & Beauty Store
Owners & Managers
- Restaurant Owners &
Managers
- Young professionals (18-30)
- Consultants, Bankers, etc
- Students
- Females (age 15 -
45) who like to try
different boutique
services
- Customers
>> New to the city
>> Not loyal to brands
>> Money conscious
Key
Resources
- Network of Retail
Stores
- Personal network of
target consumers
- Savings offered
Channels
- Web sales of
Advantage Card
- Retail sales of
Advantage Card
- Columbia University
- Gourmet Clubs
Day 2 Business Model Canvas
5. Total NYC
Retail Sales =
$78B
Total NYC
Restaurant/Healt
h & Beauty Sales
= $40B
Target=
$5.7M
*Projected target value based on
comparable service in UK using
# of members as a percentage of
total population. Applying that
to NYC total population and per
capita spending yields $5.7M.
*Projections based on NYC and is
not indicative of total market.
Expandable to other cities.
Initial Market Size
7. Business Model Canvas
Cost
Structure
- Advantage card (create & distribute)
- Website creation
- Marketing & advertising
- Overhead costs
Revenue
Streams
- Direct Sales of Advantage card
- Annual Subscription Fees
- Point of Sale conversion
- Add-on Services (customer consumption data, etc)
Key
Partners
- Retail Shops
- Restaurants
- Service
Companies (beauty
related, Spa)
- 3rd Party Social
Networks
- Clubs (Zagat, Open
Table)
- Charities
- -Seamless.com
Key
Activities
- Marketing via 3rd
Party Social Networks
- Card Sales
- Building Website
- Retail Partnerships
- Consumer
Partnership
- App development
Value
Proposition
- Monetary Savings
(Discounts)
- Additional Services
- More Business
(customers)
- Perks & Benefits to
customers (set by
retailers) Big prize
- New & recurring
customers streams
- Less severe margin
erosion for returning
customers
- Business marketing
- Flexibility of
promotions
- Exclusivity
- -Alcoholic Beverages
- Point System (Airline
Loyalty)
- Curation
Customer
Relationships
- Onboard local retailers
(restaurants & beauty)
- Justify need
- Maintain retail
relationships
- Consumer awareness
- Word of mouth
popularity
- Ensure ease of use
- Ensure advantages are
honored
Customer
Segments
- Boutique Store
Retailers
- Health & Beauty Store
Owners & Managers
- Restaurant Owners &
Managers
- Young professionals (18-30)
- Consultants, Bankers, etc
- Students
- Females (age 15 -
45) who like to try
different boutique
services
- Customers
>> New to the city
>> Not loyal to brands
>> Money conscious
- Foodies
- -Budget
- -High Spender
Key
Resources
- Network of Retail
Stores
- Personal network of
target consumers
- Savings offered
Channels
- Web sales of
Advantage Card
- Retail sales of
Advantage Card
- Columbia University
- Gourmet Clubs
-Foodie networks
Day 3 Business Model Canvas
9. Proposed Model – Consumer Study
NYC
Experience
Dining
Customers Restaurants
10. Customer Discovery: Learning
Hypotheses What we were asking What we learned
Small benefits
upon each visit
will drive new
customers and
make them loyal
FALSE
• What would you need to go out of
your way to try a new place?
• What would you need to go back?
• What type of perks would enhance
the experience and make you
loyal?
• How do you envision this
working?
• Would you pay for these benefits?
• People want exclusivity and big
paydays even if it means waiting or
spending more.
• People are more likely to try a new
place based on monetary incentives
but are more willing to return based
on non-monetary experiences.
• Consumers want an airline model
that rewards loyalty.
• Consumers will pay
• Two types of consumers at opposite
sides of spectrum
Budget
conscious and
up front lock-in
fee would drive
behavior
FALSE
• If you were to pay up front for
perpetual annual benefits would
you be more inclined to go back?
• What do you look for in a
restaurant?
• One time deal versus perpetual
deals.
• Prize experience on par with food
• Will pay for that experience
• Want exclusivity at higher end
restaurants
• Willing to try new restaurants if
quality is ensured and special perk
11. Business Model Canvas
Cost
Structure
- Advantage card (create & distribute)
- Website creation
- Marketing & advertising
- Overhead costs
Revenue
Streams
- Direct Sales of Advantage card
- Annual Subscription Fees
- Point of Sale conversion
- Add-on Services (customer consumption data, etc)
Key
Partners
- Retail Shops
- Restaurants
- Service
Companies (beauty
related, Spa)
- 3rd Party Social
Networks
- Clubs (Zagat, Open
Table)
- Charities
- Seamless.com
Key
Activities
- Marketing via 3rd
Party Social Networks
- Card Sales
- Building Website
- Retail Partnerships
- Consumer
Partnership
- App development
Value
Proposition
- Monetary Savings
(Discounts)
- Additional Services
- More Business
(customers)
- Perks & Benefits to
customers (set by
retailers) Big prize
- New & recurring
customers streams
- Less severe margin
erosion for returning
customers
- Business marketing
- Flexibility of promotions
- Exclusivity
- Alcoholic Beverages
- Point System (Airline
Loyalty)
- Curation
Customer
Relationships
- Onboard local retailers
(restaurants & beauty)
- Justify need
- Maintain retail
relationships
- Consumer awareness
- Word of mouth
popularity
- Ensure ease of use
- Ensure advantages are
honored
Customer
Segments
- Boutique Store
Retailers
- Health & Beauty Store
Owners & Managers
- Mid-tier Restaurant Owners
& Managers
- Young professionals (18-30)
- Consultants, Bankers, etc
- Students
- Females (age 15 -
45) who like to try
different boutique
services
- Customers
>> New to the city
>> Not loyal to brands
- Foodies
- Budget
- High Spender
Key
Resources
- Network of Retail
Stores
- Personal network of
target consumers
- Savings offered
Channels
- Web sales of
Advantage Card
- Retail sales of
Advantage Card
- Columbia University
- Gourmet Clubs
- Foodie networks
Day 4 Business Model Canvas
12. Channels, Get Strategy, Revenue
Retailers:
• C: Direct Sales
• G: Interesting value proposition, distance self away from Groupon
• R: Take a transaction cost on rewards spent, no upfront fee
Consumers:
• C: Direct Sales, Dining clubs and organizations
• G: Social Media, network, word of mouth
• R: Direct Sales of card, Subscription fee
13. Proposed Model – Retailer Study
NYC
Experience
Dining
Customers Restaurants
14. Customer Discovery: Learning
Hypotheses What we were asking What we learned
Restaurants
would be willing
to create
offerings to
increase
customer
experience in
exchange for
loyalty
TRUE
• How do they retain customers?
• What type of perks would you be
willing to offer recurring
customers?
• What is the breakdown of your
customers segment?
• Three types of restaurants
- High Traffic
- Proximity
- Destination
• Restaurants already have offerings
for their loyal customers
• Higher end restaurants aren’t as
willing to offer monetary incentives
for new customers
Restaurants
would be willing
to use external
sites as a
channel to
advertise and
bring in new
customers
Depends
• Have you ever offered discounts,
or daily deals through external
sites?
• How do you feel about the idea of
using discounts?
• When would you tend to offer
these incentives (seasonal/by day
or hours)?
• How do you currently market or
advertise?
• All restaurants at some point have
tried some sort of discounts
• The majority of proximity, higher
end restaurants were no longer
offering or willing to offer discounts
• High traffic, mid-priced restaurants
continue to offer promotions for
specific times throughout the year
• Typically advertise through word of
mouth or external sites
16. Business Model Canvas
Cost
Structure
- Advantage card (create & distribute)
- Website creation
- Marketing & advertising
- Overhead costs
- Membership card costs
- Experience Reservation costs
Revenue
Streams
- Point of Sale conversion
- Direct Sales of Advantage card
- Annual Subscription Fees
- Add-on Services (customer consumption data, etc)
- Service mark-up
Key
Partners
- Retail Shops
- Service Companies
(beauty related Spa)
- 3rd Party Social
Networks
- Clubs (Zagat, Open
Table)
- Charities
- Seamless.com
- Restaurants
- Museums
- Day Trips
- Tourist
Attractions
Key
Activities
- Marketing via
Social Networks
- Card Sales
- Building Website
- Retail & Consumer
Partnerships
- App development
- Club Membership
Sales
Value
Proposition
- Monetary Savings/Discount
- Additional Services
- More Business (customers)
- Perks/Benefits to customers
(set by retailers) Big prize
- New & recurring customers
- Less severe margin erosion
for returning customers
- Alcoholic Beverages
- Business marketing
- Point System (Airline
Loyalty)
- Flexibility of promotions
- Exclusivity
- Curation
- Special Experience @ Value
for consumers
- New Revenue source for
partners
Customer
Relationships
- Onboard local retailers
(restaurants & beauty)
- Justify need
- Word of mouth
popularity
- Maintain retail
relationships
- Consumer awareness
- Ensure ease of use
- Ensure advantages are
honored
Customer
Segments
- Boutique Store
Retailers
- Health & Beauty Store
- Owners & Managers
- Females (age 15 - 45) who like
to try different boutique
services
- High Spender
- Mid-tier Restaurant Owners
& Managers
- Customers: New to the city,
Not loyal to brands, Foodies
Budget
Targeted Retailers:
- Owners/managers
- Business Development
Managers
- VP of Sales
Consumers:
- Young professionals (18-30),
Consultants, Bankers
- Students
- Singles (daters)
- Corporate Relationship
Managers
Key
Resources
- Savings offered
- Network of Retail
Stores
- Personal network of
target consumers &
partners
- Software
- Direct Sales
Channels
- Web sales of
Advantage Card
- Retail sales of
Advantage Card
- Gourmet Clubs
- Foodie networks
- Columbia University
- Tourist Guides
- Magazines
- Social Networks
Day 5 Business Model Canvas
17. Hypothesis What we were asking What we learned
Partners:
Partners would be willing to offer
exclusive services for guaranteed
revenue
Partners would be willing to
allow us 30 day leeway to cancel
if can’t hit quota
TBD
• Would you like to partner up
for additional revenue source?
• Would you allow us to buy
services in bulk for a %
discount?
• Would you be able to handle a
30 day notice for any bulk
reservations through our
club?
• Willing to partner if business
is guaranteed
• Need larger sample size to
evaluate in near future
Consumers:
Consumers would prefer
exclusive experiences and would
be willing to pay for uniqueness
TRUE
• Would you be willing to be
part of a club that gives you
special experiences in NYC?
• Would you prefer food
experience or other intangible
experience?
• How often would you take
advantage of this club for the
special offers?
• Consumers are willing to pay
for experiences
• Most of them would prefer
both food and other
intangible experiences
• Most of the consumers would
be willing to take advantage
of club membership more
than twice a month
Customer Discovery - Learning
18. Next Steps…
• Customer Re-discovery
• Further study Competition in market space
• Re-evaluate Market Size & positioning
• Test & iterate Hypothesis
• Go out & interview potential consumers & partners
• Identify roadblocks & potential solutions
• Update Business Model Canvas
• Rinse and Repeat
