From presentation “Online Customer Rewards service PointLoyalty”

Problem

The main problems faced by small and mid-size companies when implementing loyalty programs include:

• High price of software offered by software development companies ($0.5-2 million), or the need to create their own processing systems for bonus programs.
• Lengthy time until the launch of the program. New development takes about 1 year, setting up the current one takes no less than 6 months.
• All existing solutions offer a limited number of bonus schemes, essentially repeating the discount models and not taking into account customer types and history of relations with the customers.

Solution and technology

SaaS service of PointLoyalty Company is a solution of the above problems. SaaS service is a universal system which allows you to establish the rules of the program and, based on these rules, to calculate bonuses for loyalty programs’ clients working for small and medium-sized enterprises.

SaaS solution from PointLoyalty Company is a service fostering the new generation of customer loyalty programs. This software has the following properties:

• Availability – the full featured standard edition of the service is free of charge.
• Usability – it takes 20 minutes to create a new version of the running loyalty program.
• Flexibility – the system is operated by marketing specialist and supports all necessary rules to stimulate customers’ purchasing activity with no IT department involvement.

Competitors

• System integrators doing customization and deployment of ready solutions for loyalty programs (e.g. – Manzana Loyalty) or in the development of custom software (e.g. – Vesdia, Comarch). These integrators hold a high price bracket which is not our priority for the first three years.
• Companies offering simple, pre-defined systems for bonus calculation to loyalty program customers (e.g. – StickyStreet). The functionality of our solution considerably exceeds the functionality of such competitors.
• Software designed for POS systems (standard discount systems, simple bonus programs) is not suitable for e-trade and doesn’t focus on customization.

Business model

The following represent a number of ways for the service monetization:
• Charge for the technical support.
• Subscription fee for full featured system.
• License sales if the system is used in customer’s network.
• System integration with client’s software.
• Consulting.

The main competitive advantages of our Company:
• It takes minimum time to start a project – without administrative delays the running program startup takes a few days.
• Free of charge use for small projects and for any type of projects in the implementation and testing phase.
• Easy integration with external applications – support for online data transfer (REST API, web services) and significant data volumes (data files downloading, transfer via FTP etc.).
• Ready made module for communications with members of loyalty programs (view bonus points, see offers and promotions).
• Scalability – supports cluster computing.