2. WHO WE ARE
Yu-kai Chou (CEO): 6 years entrepreneur experience; Co-Founder/CEO of
Viralogy and FDCareer; Regular Lecturer/Speaker on Geolocation and
Gamification at Stanford, Google, and various VC/Entrepreneur gatherings; BA
from UCLA.
Adam Gervin (BusDev): Entrepreneur with $1 Billion in Exits. Co-Founder of
OneBox.com (sold to OpenWave ), VerdiSoft (sold to Yahoo!), Caustic Graphics
(sold to Imagination), SEVEN Networks (profitable and #2 after RIM). MD from
Stanford and BS from Yale.
Stephen Johnson (Product): 15 years of programming experience. CTO of
Viralogy and FDCareer; Lead Developer at Bunchball, a gaming mechanics
startup ($2M in revenue within 1 year with customers like NBC, P&G, Victoria’s
Secret). BA & BS from UCLA.
Jun Loayza (Marketing): Co-Founder of SocialMediaMarketing.com of SEOP.
Grew to $12M in revenue with customers like LG, Levi’s, and Activision. CMO
of Viralogy and FDCareer. Cofounder of Untemplater (sold to Financial
Samurai). Hired, trained, and managed a 25-person sales team. BA from UCLA.
REWARDME.COM
3. Our story of learning, pivoting, and
achieving product/market fit (and a
$1M contract)
4. In 2010, we conceptualized the
concept of using a smartphone to
replace punch cards
5. Within 3 months, we quickly
launched an iPhone/Android App
that scanned QR Codes
6.
7. We were the earliest in the market
with that model
9. We learned that one person going door-
to-door, we could quickly get 70 stores to
sign-up in Silicon Valley in 2 months
10. In Mountain View, and Palo Alto, it
seemed like we were all over the place
Many tech savvy foodies loved us and
some wrote blogposts about us
11. It seemed so promising that we raised
around $1M from private angels and
TeleNav.
We were early. We could get into stores
quickly with more foot soldiers. Tech
users loved our product. We were excited.
13. Problems
Our product wasn’t creating disruptive, nor
measurable value for the store
Only a small % of store users can/will sign up
Our product could not record purchase
amount WITHOUT affecting operations
Customer Support for these stores were awful
Saturating local markets lead to a dead-end
15. Judgement Call:
1. Ignore these problems and continue our
momentum in getting more stores and
raise more funding (This is what everyone
in the market is doing)
2. Go back to the drawing board and
actually create a product that actually can
be a market winner
16. Both?
Startup Genome Project: #1 reason
startups fail is premature scaling
Changing our model after being in
thousands of stores would be a nightmare
We had to decide NOW
17. New Company Thesis:
❖ The market will be won by those who tackle the
hard problem of selling into chains
❖ Domino Effect: large chains are slow adopters but
fast followers
❖ Large chain traction will trickle down to small
stores nationwide
❖ Large chains have an entirely different set of
requirements (ROI, Data, etc.)
18. We relaunched at the end of 2011 with a
MUCH better product that satisfies chain
store requirements...
20. STEP 1: ACQUIRE
How?
1) Sign up every guest
2) Capture detailed data (and lots of it!)
3) Without interfering with speed and business
operations
REWARDME.COM
21. STEP 1: ACQUIRE
Put iPads into stores to run their
rewards program
Collect real-time purchase data
from any Point of Sale system
Guests join with just a phone number
(Currently acquiring between 20-40% of
ALL daily guests)
REWARDME.COM
24. STEP 2: ANALYZE
Target guests based on usage filters (spend, visit
frequency)
Target guests based on demographic filters (has kids,
income > 100K)
REWARDME.COM
26. STEP 3: ACTION
Auto-Triggered Messages via
1) In-Store Screen
2) Mobile SMS/Push
Based on
1) Purchase Preferences
2) Demographics
3) External Environment
REWARDME.COM
27. RECAP
RewardMe reads receipts from ANY POS And acts in store, on the web, and on your phone
Analyzes, interprets, and prepares the data for consumption
28. Result
Based on 20 Stores for 7 months (120 more signed up)
116,000 27.58%
Check-ins of ALL purchases
(from 66,264 Users) (up to 51%)
64% 33%
Check-ins from Users Opt-in to SMS
Repeat Users Marketing
REWARDME.COM
29. Result
Based on 20 Stores for 7 months (120 more signed up)
RewardMe users 5.7%
buy 20.5% more AOV difference is
provable Lift
Provable 2% 66%
Bottom-Line Revenue Lift
Revenue Lift
on day of
($20K/yr)
SMS Push
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30. 10x Better Solution
Compared to “the best” in the market
Duration Users/
Name Users Locations Redeems
(mo) Location
RewardMe 66,000 6 20 3300 10,111
Belly Card 200,000 12 1500 133 14,000
Five Stars 250,000 15 700 357 NA
REWARDME.COM
31. Business Model
Stores pay for Monthly Service
hardware (and Fee per location
installation) (feature-based)
Mobile Purchase SoLoMo
Commissions Targeting
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34. Series A Funding
• 2012: Raise $5M to scale up business
• 24 months runway
• Spending Plan:
Marketing/Bizdev: $2,000K
Tech/Infrastructure: $1,700K
Account Management: $800K
General/Admin: $500K
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35. Summary
1.Mooyah loves
HUGE Market
RewardMe!
2. Experienced/Successful Team
3.and we know you will too
Product Leadership
4. Success in Enterprise sales
Yu-kai Chou
714.273.7088
Yukai@RewardMe.com
