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.

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. 

Business Model Canvas

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 people that wants to get attractive discounts -Families mothers going to supermarkets. -Old people that wants to benefit from the reward system and adapt to technology Companies using loyalty systems: -Supermarkets
	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

Our initial hypothesis, we wanted to created an application that allowed people to have all their legacy cards on one single application. We wanted to focus especially on supermarkets companies and the usual type of consumers.

We defined 2 types of consumers: Individuals as consumers and companies as consumers.

Profile of companies:

-Supermarkets wanting to add an automatized system, with an online client database registered in the application. The objective of these supermarkets is to increment client satisfaction offering more available offer to their products and incrementing their overall sales. The application would also allow to share some information with other supermarkets.

Profile of individual consumers:

-Young people that wants to get attractive discounts

-Families mothers going to supermarkets ( and Families in general).

-Old people that wants to benefit from the reward system and adapt to technology

Conclusion:   An application focusing day to day transactions in supermarkets, allowing consumers to have all their legacy cards combined in one application and maximizing their discounting options. As supermarkets are very competitive in prices, this could benefit consumers in order to get the best offers but could not be very reliable to supermarkets itselfs, as they always play with really low margin competitivity.

Interview Results Companies

Compani Interview:  Sorli Discau

1.     What is your actual system of rewards?

2.     Does this attract more customers?

3.     Would you like to attract more customers (especially young)?

4.     Would you like to collaborate with other companies?

5.     Have you ever had any problems with your loyalty cards?

6.     Would you like to have a more united community of customers?

7.     What are the basic regulations in terms of privacy of your company?

8.     Would you share your information with other companies?

Interviewee:  Joan Martinez, Manager of Bonanova´s Sorli Discau

1)

Our reward system is based points accumulated by buying our different products; every product gives a certain amount of points.

Every month, we have different special offers, for example this month we have rewarded our clients with gifts for buying an specific week.

The rewards are not only free products but also a returning percentage of your full purchase order.

2)

Yes, more than attracting more customers, it also makes them spend more money in their different purchases. In conclusion, we gain more customers and higher buying consumers.

3)

Yes, we don´t forget that we are selling a lot of products for kids and young people and it is a way to make them future customers. We want to attract them especially on weekends, as they have free time.

4)

It all depends about our benefits, if we can increase our revenues and have a good relation with other entities without compromising our confidential data, we wouldn´t have any problem to cooperate and make business deals.

5)

Time to create new loyalties cards and register people

If our consumers loses their card or there is any problem related,  there is a long process in order to re- establish the information and get again all the costumer information gathered, processed and being ready again (24h or more at least, depending on the case)

6)

We would be very interested, as our social media resources are nearly insignificant and they are not updated, so customer’s doesn´t really have any kind of platform in order to communicate and interact with our company. We would like to have our customer in an special platform in order to share their experience and get to know all the products, offers and consumers.

7)

The manager told us that he couldn´t share this information with us, so we deduced this subject is relevant for the company.

8)

Depending on the agreement and the use of this information, we would accept to share it but always with legal supervision.


Company Interview:  La Caixa

1.     What is your actual system of rewards?

2.     Does this attract more customers?

3.     Would you like to attract more customers (especially young)?

4.     Would you like to collaborate with other companies?

5.     Have you ever had any problems with your loyalty cards/system of rewards?

6.     Would you like to have a more united community of customers?

7.     Would you share your information with other companies?

     1. Nowadays we offer a wide variety of rewards, depending on the activity of the customer, his type of card and his age. We have a variable programme of rewards that is periodically changing, giving for example a Samsung TV if you make us as your principal bank, different coupon discounts if you have Carnet Jove, higher annual percentage revenues for having your money in our bank...

2. Yes, as we have a good reputation and it encourages even more people to trust on us and have their money in our bank, with a plus given with the rewards.

3. We have done different promotions to attract younger customers , the most succesful remains the carnet jove, with all the activities that we offer. Every company objective is to attract younger customers , in order to have a good client base in the future.

4. Actually, we are in a good position as customers relations and revenues are concerned. We already collaborate with a lot of entities, but we are looking forward for starting working with others if this gives us economic benefit.

5.  We have a consistent system of rewards and we nearly never have any problem. Nevertheless, we had to close our program called " Puntos Estrella", which customers were accumulating points and they were able to exchange them for prices, as it was not overall beneficial for our company.

6. This is a problem that concern us, as we try to offer the best services but still we don´t have a clear united community of customers. It is one of our objectives in the future.

     7. If you mean comercial agreements, then it would depend on the terms , but we are always disposed to negociate.

Company Interview:  Hotels Hilton

1.     What is your actual system of rewards?

2.     Does this attract more customers?

3.     Would you like to attract more customers (especially young)?

4.     Would you like to collaborate with other companies?

5.     Have you ever had any problems with your loyalty cards?

6.     Would you like to have a more united community of customers?

7.     What are the basic regulations in terms of privacy of your company?

8.     Would you share your information with other companies? 

          1.  Hilton rewards work out by our booking policies and transactions made directly from our web page, there is up to 5% discounts that our loyal customers can get apart from free wifi. Hilton Honors members, get the best deals we can offer in any of our hotels or co-working hotels.  

            

            2.  yes it attracts more customers but most of our customers are not informed well of how the      system works, in general, most of our customers come back because the enjoyed the      experience in a quality and price comparison.  

           

           3. there is no doubt we want to attract more customers in their young adult stage but we are aware that we don't have the cheapest service and now a days there is a lot of competition with airbnb and hostels for this type of target.  

            4. we are already collaborating with airlines and car rentals to make better deals and climb in  this competitive market as a whole, we are trying to expand collaborations but in a high business standards, as we know that is our potential market and has been for many years.

           5. we do not have loyalty cards, we just have credit cards service fo elite customers.

           6.  we have a united and loyal community that can grow much more and we are interested in   that to happen with our new marketing campaign and technological implementations in  social media etc.

           7.  In addition to the uses and sharing described in the privacy, we may use and share relevant portions of your personal information in order to administer the Hilton Honors Program. This may include sharing your personal information with our business partners in order to credit you with mileage or other benefits earned through your participation in the Hilton Honors Program.

           8.   By enrolling, you also consent to the transfer of your information to countries where our  information processing facilities, business operations and hotels are located, including the United States and other countries where data protection laws may differ from those of your home country.

Company Interview:  El Fornet

1.     What is your actual system of rewards?

2.     Does this attract more customers?

3.     Would you like to attract more customers (especially young)?

4.     Would you like to collaborate with other companies?

5.     Have you ever had any problems with your loyalty cards/system of rewards?

6.     Would you like to have a more united community of customers?

7.     Would you share your information with other companies? 

1. we have a reward system based on a card that we give to our customers and they fill up with stickers from el Fornet, every six stickers its a free sandwich of the day that they can acquire in every Fornet in the city. 
2. It attracts some local customers most of the time that live near the location where we are or that are frequent to it because of work, high school or university. 
3. yes we always want to attract more customers from different ages, we don't want only young people because usually they don't spend much or just come for few products. 
4. we have our managerial policies implemented already but if we get more people and the investment is not high we will be happy to collaborate with other firms for sure. 
5.  not really the system is really simple, but we would like more if it was electronic and there was no need to be changing some customers cards every week. we would like to change our system in the near future. 
6. yes we would like to have a reliable customer society, doesn't matter if local or foreigner, because actually foreigners spend much more money  when they come.  
7. yes we would if this generates more income to our company and data is treated in the correct way.