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.

Demand Creation

Demand Creation:

Our sales funnel for the users done through the app or website will be composed of 7 steps.

Conclusions Interviews

The conclusions of the interviews that we have done to the users and companies during the project are the following ones:

Users

1. Almost all the people have loyalty cards. The ones with more are adults with kids.

2. All the people see a problem in having to carry out too many loyalty cards on their wallets.

3. Old people say it's difficult for them to get used to the new technologies. Some of them try to adapt to these changes and others don't. Young people, adults and families with kids easily adapt to the new technologies.

4. Most of the people don't always use their loyalty cards or coupons because sometimes they don't remember or they don't have time to go to the shop and benefit from the promotion. These profiles are specially adults with kids and old people.

5. A lot of people think that the loyalty systems service could be better by offering more and better discounts and promotions, and allowing more time to benefit from the promotion.


Companies

Systems are based on points, stickers, by buying monthly in most of the shops, some companies give free products or percentages in a way of cash back, some like Caixa in this interview highlight that they give presents if the customer makes them the principal bank where their income is payed monthly. 

 All of them make more customers with loyalty programs promotions and even make higher margins with them, customers acquire one offer and then move to the next, this works like a hook for most firms. 

All of them are interested in new customer of all ages, one customer is a a new income, but only Caixa wants young customers and have a program just for them Jove carnet, design for a younger customer base, that is what they need in the future. But in the case of Hilton hotels young people is not their market because they don't have the money to spend in this service or in groceries or restaurants, until they become fully independent. 

All firms are open to collaboration if higher earning is acquired they will join with the firm needed if the final result is more income.  they want a faster and centralised service for customers, a platform that control all offers, they don't want huge amounts of policies for different promotions because is complicated for both firms and customers, they want a full connection with social media.  
most companies will share information if a joint venture is made and if data is handle with responsibility, except Hilton because of their based policies in USA area, that cant be changed. 

Leaps of Faith Questions

Tapp Dashboard - Leaps of faith

Leaps of Faith Questions		Hypothesis	Metrics	Finding	Insight/Response
1	Will old people be able to use an application to pay?	It's usually difficult for old people to adapt to technological changes	Surveys and interviews	We need to make tutorials for old people / user manual that is easy to understand for older   customers	A small portion would understand and use the application.
2	Can we reach our key customers?	Yes, throught the main business and adds.	Surveys and interviews	Through Social Media, supermarkets,  Adds	More attracted customers.
3	Who are the key customer segments who would benefit the most from our application?	Young people, parents with interest in  promotions.	Surveys and interviews	Active people in supermarket´s Social Media or promotions events	Parents, people between 18-65, families with kids.
4	Do people perceive the need to do some change in the loyalty systems? And with their cards?	People thing the loyalty system  process could be improved	Surveys and interviews	Customers are not motivated by the loyalty system	More attractive rewards, diversity of sectors
5	Is people interested in creating a community based on  shopping interviews	People may want to have feedback and communicate with other buyers	Surveys and interviews	We need to motivate people to use our application and share experiences with customers	People would be more active socially and would let know the different companies promotion.
6	Are companies interested in changing their way of rewarding their clients or introduce it?	Companies may want to improve their reward system and have a bigger/happier client database	Interview with them and explain them the project and the main benefits	Throught client actual satisfaction survey	The company reports a need of improving their rewarding system
7	Would people want to change their way of receiving their rewards?	People may want to have a more direct reward system and be able to check it instantly through our applicaiton	Surveys and interviews	Throught client actual satisfaction survey	The actual system is too simple, gives little alternative to consumers and needs to change
8	Would companies pay for our new system rather than using their old legacy system?	Client is becoming more and more important to companies	Interview with them and explain them the project and the main benefits	We need to incentivate companies to use our application/system	Companies are looking for greater consumer satisfaction and this will be a way of achieving it

Market Analysis

Market

The loyalty cards have been made a hole in the Spanish portfolios and their use grows dramatically. The loyalty cards, launched by large airlines, textile and food chains to ensure the loyalty of their customers, are the real engines of this growth.

According to data from the third wave of the study "Measuring the effectiveness of Loyalty Programs", Kantar TNS, in 2016 loyalty programs contributed to some brands more than 50% of their sales.

According to a study by American Express Spain, 81% of Spanish consumers use loyalty cards, compared to 7% who forget to use them despite having one of them. These consumers usually have an average from three to five cards.

Millennials are the most impulsive, and therefore they are more sensitive to the offers launched by the programs, 64% acknowledge that they exchange points for offers. This trend is also observed in households with an average income volume (67%)

The physical card is still the most used support to accumulate points according to 77% of respondents, although 44% declare that they accumulate points automatically at the time of purchase without the need to present a physical card. The apps of the loyalty programs do not have a great penetration among the Spanish users. 40% confess to not knowing if their program has an app and those who know it exists, half do not use them. Millennials are the ones that most use apps and 26% of them consider them essential in a program of this type.

Loyalty programs customers prefer that the management of it is done through digital channels. One out of every two members of a loyalty program prefers this modality. When registering for a loyalty program, consumers especially value the economic benefit.

61% of loyalty programs consumers admit that they would like the offer of prizes to be wider. Middle-aged users are the most demanding in this regard, while those over 55 are the most comfortable with the existing offer.

Analysis of our main competitors

Direct competitors:

NoKadi Aplication (App that digitalizes loyalty cards)

Strengths:
- Free app that allow you to have all you loyalty cards unified.
- Not just discounts of only one sector
- Easy to use

Weaknesses:
- Mobile data consumption
- Security of your data
- They don't have a wide variety of companies where you can get discounts
- Discounts very similar and not very attractive


Indirect competitors:

- Existing companies that already offer a reward system (Caprabo, Zara, Hilton...)

Strengths:

- Free loyalty cards

- Discounts

Weaknesses:

- You have to carry with you a physical card

- You have to check the advantages on the web

- The promotions are more or less the same during the year. Not a wide variety of offers.
- Additional time at the store
- Excessive spam

● Caprabo

Caprabo is a leading supermarket company in Spain, with supermarkets and hypermarkets in Mainland Spain, the Balearic Islands and the Canary Islands. Caprabo was founded by Pere Carbó, Jaume Prat and Josep Botet, in 1959. It operates an online shopping and delivery service in Spain. Caprabo was acquired by Eroski in 2007.

● Zara

Zara is one of the largest international fashion companies. The company was founded in 1975 by Amancio Ortega and Rosalía Mera. It belongs to Inditex, one of the world’s largest distribution groups.

Strengths and weaknesses of our company

Strengths	Weaknesses
All your loyalty cards on your smartphone	The investment that companies have to do for the infrastructure
Attractive and wide variety of discounts	The market can’t have a lot of supply capacity (apps doing this business)
Maximum privacy for both individual users or companies.	there will be no investment from companies in the system implementation.
Developing market
You can check your points whenever you want on your smartphone
Companies can obtain more relevant data of their customers