Business Canvas 2.0

Key Partners Marketing agencies	Key Activities Creating a consumer community Unify your loyalty cards into your smartphone Offer attractive discounts/promotions to improve customer satisfaction Sharing analytics with companies	Value Proposition Wide variety promotions Commodity Easy to use Attractiveness of promotions/discounts		Customer Relationships Self-service and automatization  relationship. Interaction between users	Customer Segments Clients using loyalty systems: -Young professionals with medium income. -Women with medium- high income. -Families with medium/high financial capacity looking for good offers. -Digital Natives Companies using loyalty systems: - Big companies from the fashion, luxury, sports  and car sector with focus on loyalty systems - Medium companies with focus on loyalty systems Big and medium-sized companies with no loyalty systems wanting to create a wider community of loyal customers.
	Key Resources - Mobile App - Smart devices -Machinery in the        shops - Have the  maintenance service available - Patent			Channels Application Advertising at Companies Consumers Social Media
Cost Structure Technology Costs ( database) Development of the application Design Salaries of employees Security costs			Revenue Streams 1% of percentage of transactions 5% of Special offers Publicity

In our second version of the Business Canvas, we pivoted our first hypothesis that supermarkets would be our main companies consumer of the application. We also rejected the hypothesis of having people from 60 year and above using our application, as it was proven that it was not a potential consumer anymore in the opportunity matrix stated below.

We changed the focus on the type of industry and the consumer in both the individual part and the company side.

After a set of interviews to both of our consumers, we elaborated an specific profile of each one:

Profile of companies:

1. Multinationals with high revenues and a high focus on loyalty programs wanting to add facilities to their customers and improve their satisfaction.
2. Medium Size Companies wanting to improve their impact on customer satisfaction and their database.
3. Medium Size Companies wanting to create a brand new fidelity reward system for their consumers.

Conclusion: The general idea for companies is to improve customer satisfaction by establishing a fast, practical and social new way of paying and therefore incrementing their sales, reputation and client retention thanks to our application.

Profile of individual consumers:

In this case, we elaborated an specific profile of our potential individual consumers thanks to the realization of the opportunity matrix:

We also realized an empathy map with the results of our interviews in order to have a clear idea of what the vision of the individual consumers was about the application:

Conclusion: We set a profile of individual consumer being young native digital, with a preference of young women, as they tend to purchase more than men and in higher added value shops (especially fashion and luxury products). Families are also a potential consumer, as they search for discounts in more general shops (Toys, supermarkets offering high quality like Carrefour, Clothes, Sports,…) that also focus on having their consumers loyals with offers and are familiar with applications. The main concern comes to the privacy domain, as people want to have their transaction details secured and their data in a private status. Nevertheless, this is compensated by a clear need of having loyalty cards organized and accessible in any place and any moment by the consumer, which is possible with the new technologies.

Opportunity Matrix

Empathy Map / Value Proposition Analysis

• How have your user / customer hypotheses changed?

 We have still the same user/ customer hypotheses than the beginning, more focused maybe on the privacy concern , the adaptability and the age, as older people wouldn´t be able to adapt

• Did your Value Proposition change?

Our value proposition is the same: offer the maximum facilities to our consumers to have their loyalty cards in the same app, don´t loose them and make them profit the most of them in every situation while offering the maximum privacy to both individuals users or companies.

Prototyping

Test your paper prototype (or other MVP) with 3 actual potential customers to obtain relevant data
Record a video of each test.
Post to your blog
–The paper prototype
–Video from each test
–Notes from each test
–Analysis of the results from testing – what changes would you make to your solution? How does your business model canvas change?



–The paper prototype

–Video from each test

Link: https://www.youtube.com/watch?v=QBnaiHSCVEY


–Notes from each test

In this video what we wanted to see is if the client thought it was a good idea to add and manage all of his cards in his mobile. We found that it was more difficult for the customer to lose his mobile phone and that he also saved having all the discount coupons on paper. 

As a suggestion from the client, we commented that it would be a good idea to add several ClubDia cards within the same application so that a person, for example a parent, could use their child's card from their mobile, taking advantage of the fact that the latter had more discounts than with his own

–Analysis of the results from testing – what changes would you make to your solution? How does your business model canvas change?

We should try to offer the service as an advantage for the stores since most do not yet incorporate the reader for applications, in the second place we could try to offer only the customer number to avoid waiting for the physical card (it would save time and cost for commerce), in terms of the transfer of data would be practically the same (telephone and email) and could both use the own server of the trade or our own with minimal risk since it would implement a system to prevent data theft and several solutions to verify the identity of the client in case there is a problem.

Regarding our BMC, we believe that we should focus on customer relations (information, rectification of errors, advantages) and have a courteous treatment always with all customers and on the other hand also with the shops since they will be the ones also make the customers' shopping experience good or not.

- Analysis of the Prototype testing done to Daniela Taylor, young adult sharing a flat with other two young adults)

The results we have seen are:
1. Effectively solves the problem of carrying so many discount coupons on paper or looking up for them in the email, same thing for the cards, we don't have to carry all of them together or plan a future purchase in the day to carry the card.
2. Avoid losing the loyalty card and getting a new one this in terms of environmental impact.
3. Having the discounts and the products available in the same place, so you do not have to waste your time looking for the store if you are not near, just use your promotions and loyalty points and buy directly online.
4. Easy to use and fast/effective.

Positive ratings:

- know how many loyalty points I have at any time.
- Have the coupons and offers on the mobile
- Easy access to the account and add cards

Negative evaluations:
- There are not that many companies with loyalty cards in Spain.
- companies will not invest any money in the implementation.

Miss:
- the actual balance of the account in points because some cashback offers expire and companies want consumers to forget the exchange.
- some of the offers are not clear.

conclusion

Implement new features such as those described in the app like maybe cashback offers to appear first even though companies prefer they expire, a wider range of products and services, stores and even restaurants, so there will be no need to use anything else than your app, reliable system of rewards for successive purchases and be able to add more cards of the same store for example a credit card and a loyalty card in a single account.

MVP

Plan your MVP

• Choose one or more assumptions you want to test. These should test your main leaps of faith!
• Identify a clear, specific objective and prepare a script for 2 or 3 scenarios that you’d like to test.
• Be imaginative
• Represent the product benefits
• Try to reproduce a “realistic” interaction

1. The Beta Mode for entrepreneurial Pivot.

Our project is the answer to improve a service of integration of loyalty cards in a single app with visual section on offers and easy access to the information corresponding to the card stored in question.

The problem of our business is in the first place the time. We need a lot of time to organize all the offers and cards of all the commerces, therefore the initial pivot phase will be:

1. Focus on a small sector (without discarding our initial model).
2. Not to offer so much information to our target.
3. Implement it little by little with new options.

2. Identify & undestand the business needs. MVP plan

- Project for a long term

- We do this project for solve the problem to have a lot of cards for discounts from differents commerces

- Easy to use, simple, cheap and for all people.

3. Map out the user journey

User	Actor	Story Ending
Andrea (27)	-Find high valuable offers on expensive products. - Medium /High Salary - Active buyer both weekly and in the week-end	- Buy “all that she likes” - Buy fashion and expensive products, showing a real importance on the brand. - Has not enough time to buy all that she wants and has too much loyalty cards
Enrique(24)	- Searching for offers in the fashion and luxury sector -Medium salary as he is initiating to be an entrepreneur. - Buying once a week and not familiar with the sector	- Thanks to our applications, he finds references and great discounts on products that match his needs with a discount. - Helps him to organize his loyalty cards as he is not used to use them. - Practical for him, as he is all day checking his smartphone.
El Fornet	-Try to attract more customers with rewards on the loyalty system. -Offer a wider range of information and facilities to customers.	- Higher satisfactions -Mouth-to-mouth effect on customers - More customers discovering el Fornet. - More present in Internet and Social media, which allows to “exist” in this digital era.

4. Map of leaps of faith & test

5. Product benefits

• Add your clients cards
• Scan the card: QR or bar codes.
• Store your cards in the cloud.
• Choose cards from a list.
• Don´t forget more cards.
• Location to determine the nearest comerce.
• Choose your card and receive offers.
• Store your cards in your mail for backup.
• Touch ID function
• More national cards

6. Test Interaction

We have chosen a scenario with the youngest person (25), in order to anticipate the demand of the youngest segment.

(When she goes to pay at the car register)

Andrea: How much is it?

Teller: Is 10 euros, do you have our fidelization card ?

Andrea: Not this time, Im in a hurry. I dont have

Teller: Do you know that you can use your phone  trough tapp app to acumulate points for future rewards ?, you can do it at home dont worry.

Andrea: and how is this ?

Teller: You can only use your email for register and next time when you come, you only need your phone and cash.

Andrea: And the spam ads or privacy ?

Teller: There is no spam, only you will receive the offers inside the app. Always there are offers during the week. And the privacy, there arent more personal data, only your email, and your email is under regulated in our server and in your mail provider.

Andrea: So can I do at home?

Teller: Yes, when you want, and think about it, its worth it.

Andrea: Thanks, bye

Revenues and Costs

Market Insight:


From el Periodico ( 2/11/2017) - "Barcelona, con un 78%,  Barcelona es donde los encuestados reconocen ser menos olvidadizos y sólo el 2% declara que se suele olvidar de utilizarlas."  ( Importance of loyalty cards in Barcelona).


Total population : 1,609 millones

Target :  1,255 millones de personas

Year 1: 5% Barcelona population uses our app
Year 2: 15% Barcelona population uses our app
Year 3:   30%  Barcelona population uses our app
Year 4: 40% Barcelona population uses our app
Year 5: 60% Barcelona population uses our app

The Customer

Personas:

Our personas will be divided in 2 groups.

Customers:

- Big Companies using loyalty systems

- Medium-sized companies using loyalty systems

- Big and medium companies not using loyalty systems, but willing to have a wider community of loyal customers.


Users:

- Families using loyalty cards. 

- Young people using loyalty cards.

Personas (customers):

Zara:

- Multinational big company with high revenues

- Great fidelization of consumers by differents offers through the loyalty cards.

- Wants to innovate their system and achieve new offers to customers in order to increase sales.



Cottet:

- Medium-sized company with medium revenues.

- Graduated sunglasses, sunglasses, contact lenses and hearing aids.

- They offer loyalty cards in order to get discounts.



El Fornet:

- Medium-sized company with medium revenues

- No loyalty programs. Fidelization of consumers by comming a lot of years to the same store, personal treatement, great relationship with the customer ( not only comercial).


- Need of attracting new customers and developping their client database, as their client database is each time going down and they need offers due to high competition.



Personas (users):

- Stephen :

Lives in Barcelona

Age: 40 years old

Salary: 20 000 /year

Married with 2 kids

Shops in the weekend, alone or with family.  Buys clothes, food, and basic things for himself. 
Travels quite often and likes to be part of memberships.

Has different discount and legacy cards.

Uses quite often smartphone


- Andrea :

Lives in Barcelona

Age: 27

Young professional

Salary: 16.000/ year

Single

Buys both during the week and in the week end. Buys fashion clothes, food and goes to different social events.

Uses discounts and legacy cards, as she confesses to us that she is a "fashion addicted" and can´t resist sales and Apple products.

Always uses smartphone






-Enrique:  

Lives in Barcelona

Age: 24

Entrepreneur from Technova recently graduated in Lasalle Barcelona

Salary:  12.000 /year

Single

Wants to buy in fahsion shops in order to show elegance level as an entrepreneur.

Does not have time to remember all legacy cards and discounts.

Very familiar with applications and innovations, as he is a digital native.