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Business Model

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@Patrick Mitchell

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added some comments below

Key Questions

What is the absolute bare minimum I am willing to pay to set up a card-linked loyalty app for my customers?

What is the hook/”aha” moment where a user thinks “wow, we need to pay more for this”. Where does this point come in the journey?

How large an audience do we think we need to create intrinsic value for the merchants on a store by store basis?

At what point in the customer journey does a merchant perceive the most value from with regards to a loyalty solution (i.e. is it new customer acquisition, customer retention and engagement, customer behaviour insights i.e. forecasting etc, upselling other product, driving sales during off-peak hours?)

Freemium: Staggered on # of users

Freemium approach, offering up to 50 loyal customers per location

Staged pricing based on # of connected customers

0-50 - Free

50-250 - £25pm

250-500 - $50pm

+500 - custom

SaaS Option 1: # of users

Staged pricing based on # of connected customers

0-250 - £25pm

250-500 - $50pm

+500 - custom

SaaS Option 2: Fixed based on # of Locations

Fixed fee based on # of locations onboarded

£25-75 per location

Single shop pays 25-50 per month

Small chain (2-5 shops) pays £150-250 per month)

Large chain (5-30 shops) pays £250-£750 per month)

SaaS + Consumption Model: # of Promotions Sent (i.e. Audience reach limit)

Fixed SaaS fee based on # of locations

Variable fee based on the number of marketing notifications/promotions sent out to your audience

Key question here is do we let them share unlimited with their customers and only charge for new customers? Or do we charge for both?

Perhaps a fixed # of people/promotions you are able to send out per month for free (say 1 per customer per week), and you pay to increase?

Perhaps value of this model only comes when you have a significant audience

SaaS + Consumption Model: # of Campaigns Live (i.e. Product Limit)

Fixed SaaS fee based on # of locations

Fixed number of campaigns you can make per month as part of your package (i.e. you can run 5 campaigns per month. For e.g. 2 for 1 coffee on a Tuesday between 12-3pm)

Pay to increase to 10, 20, 30 etc

What is the hook or “aha” moment that makes the person building their campaigns go - fuck it we need to pay for more of his.

Another option here is to offer customer campaigns for free - pay to use the Ai feature that automates it (i.e. “our Ai has analysed your existing data and estimates it can improve your promotion efficiency by 40%, increasing revenue by X%”

optional Add-on for Ai

Alternative Revenue Streams: Additional Product Offerings

Paid for membership - if we could make the case for the Pret model to be effective across other business types, it would be a highly lucrative way to skim a 10% margin on whatever they are able to charge.

Payments - long term revenue opportunity

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