PunctConnect
Revolutionizing Loyalty Rewards
Idea Description
PunctConnect is an innovative application that transforms the way you enjoy rewards and loyalty in stores. Instead of having a dedicated app for each store, PunctConnect allows you to centralize all loyalty programs in one place. Collect points, receive exclusive offers, and save time and space on your phone, all with the help of PunctConnect. Connect your accounts from your favorite stores and get ready to enjoy benefits with every purchase!
Team Members
Alexandra Mitulescu
- Role: Backend Developer
- Email: alexandra@punctconnect.com
Bogdan Piele
- Role: Backend Developer
- Email: bogdan@punctconnect.com
Ionel Patrascu
- Role: Product Owner
- Email: ionel@punctconnect.com
Olivia Oprea
- Role: Frontend Developer
- Email: olivia@punctconnect.com
Mihai Preda
- Role: Business Analyst
- Email: mihai@punctconnect.com
Problem Description
In today’s digital age, consumers face the hassle of managing multiple loyalty programs for various stores. Each store has its dedicated app, leading to a cluttered and disorganized experience on their smartphones. This not only consumes precious storage space but also makes it difficult for users to keep track of their rewards effectively.
Solution / Value Proposition
PunctConnect offers a simple and elegant solution. It centralizes all your loyalty programs in one intuitive application, allowing users to manage and track their rewards seamlessly. By doing so, we aim to simplify the way consumers engage with their favorite stores, offering them a more convenient and rewarding shopping experience.
Customer Segments
Our target customer segments include:
- Frequent Shoppers: Individuals who regularly make purchases at various stores.
- Tech-Savvy Consumers: Those who prefer digital solutions for managing their loyalty rewards.
- Busy Professionals: People seeking efficiency in managing loyalty programs.
Competition
Our main competitors in this space are other loyalty program apps, such as Stocard. These apps also aim to streamline loyalty programs, but PunctConnect offers unique features and benefits.
Advantage Over the Competition
PunctConnect stands out due to the following advantages:
- Unified Platform: Unlike competitors, PunctConnect integrates loyalty programs from multiple stores in one place.
- Exclusive Offers: We provide users with special offers and discounts to enhance their shopping experience.
- User-Friendly Design: Our user interface is intuitive and easy to navigate, ensuring a seamless user experience.
Key Metrics
Key metrics we will track include:
- User Engagement: Measuring how often users access the app.
- Loyalty Program Integration: Tracking the number of stores integrated.
- Redemption Rate: How often users redeem rewards.
Cost Structure
Our cost structure includes:
- Development Costs: Expenses related to app development and maintenance.
- Marketing and Promotion: Costs associated with advertising and promotional activities.
- Customer Support: Investments in providing quality customer support.
Revenue Streams
Our primary revenue streams include:
- Subscription Model: Offering premium features and services for a subscription fee.
- Partnerships: Collaborating with stores to generate revenue through promotional offers.
- In-App Advertisements: Providing advertising space within the app for brands to reach our user base.
Connect with PunctConnect
By addressing the project’s key aspects in a clear and visually appealing manner, we aim to convey the essence of PunctConnect and the dedicated team behind it. For further inquiries, feel free to reach out to our team members via email. Thank you for considering PunctConnect as your loyalty rewards solution!
Identifying the problem
We noticed the problem upon a combination of market research, feedback from the customers from various stores, and personal observation. In the initial phase, a series of questionnaires for frequent shoppers highlighted the frustration with managing multiple loyalty applications. By observing the market, we further confirmed that the average smartphone user is increasingly concerned about the number of apps they manage, and clutter is a growing problem.
The increase in the number of apps has caused many people to feel exasperated, which describes the concept of App Fatigue. Moreover, it only takes a week for the average smartphone user to delete an app. At the same time, 30% of app downloads in North America—as measured by Tune’s customers between November 2017 and May 2018—were reinstalls.
Looking into the Romanian market of applications, we found multiple platforms for retailer chains, fast-food stores, and even jewelry shops.
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Moreover, certain platforms, such as Starbucks, only offer a web-like layout, which is not optimized for mobile devices. What is more, it requires the user to log in every time they want to access the platform. While preinstalled solutions, such as Apple Wallet, include multiple cards, it is not possible to see the points balance or redeem rewards.
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How to beat app fatigue
The solution envisioned is PunctConnect, an app designed to consolidate various loyalty programs into one platform. By offering a centralized loyalty program management system, PunctConnect aims to reduce app clutter, save phone storage space, and simplify the user experience.
Customer discovery
The customer discovery plan includes conducting surveys with numerous participants who frequently use loyalty programs. The goal is to understand their habits, preferences, and pain points. The survey will be conducted online, in a Google Form, and the participants will be recruited through social media. dentifying Customer Segments
- Demographics: Target customers who are frequent shoppers, both online and in physical stores, and who use smartphones.
- Behaviors: Focus on those who actively participate in loyalty programs and have expressed frustration with the current system.
- Outreach Methods: Utilize social media platforms and messaging apps to reach out to potential customers.
Questions for the Form
- How many loyalty program apps do you use regularly?
- What are your biggest frustrations with the current loyalty program apps?
- How important is storage space on your phone to you?
- What features are most important to you in a loyalty program app?
- How often do you engage with loyalty programs weekly?
- How likely are you to switch to an app that consolidates all your loyalty programs?
Insights
The full results of the survey are provided in the following report.
- All of the participants use at least one loyalty program app. Moreover, more than 6 out of 10 use at least 2 apps.
- People are mostly frustrated that they are not notified about the offers of the stores and that they have to install several apps. Therefore, our focus will be on these two aspects so that the users will not miss any offers.
- Less than 3 out of 10 individuals do not care about the storage space issue on their phone. As a result, while we will take into account the storage space issue, it will not be a priority.
- An overwhelming amount of people would appreciate that a loyalty program app should be easy to use. Moreover, they would like to be in touch with the newest offers of their favorite retailers.
- ~90% of the participants use loyalty platforms at least once a week.
- An overwhelming 90.5 percent of the participants would switch to an app that consolidates all their loyalty programs. Out of these, 52.4 percent would switch immediately.
Customer Validation stage plans
Given the insights obtained from customer discovery, it is reasonable to move to the customer validation stage. Here’s why:
- Product-Market Fit: There is a clear need for the solution PunctConnect offers.
- User Feedback: We now understand what future expectations are given the problems outlined by the users. Therefore, we can focus on tailoring the product to meet these expectations.
- Market Research: We have compared our solution to the competition and their users. As a result, we can now build a viable solution that exceeds the expectations of the users and the competition.
In the future, we want to develop a Minimum Viable Product so that the users can test it. We will gather feedback and the following iterations will ensure that the solution fits the needs of the users. By using metrics such as time spent on the app and how often the users access it, we will be able to measure the engagement of the users. Finally, we are ready to validate the assumptions about user behavior through real-world testing.
Landing page
The customers are greeted with a straight-to-the-point, modernly-designed landing page designed to elevate their interaction with the platform.
Wireframe
This is how we imagine the flow of the platform. Keep in mind that this is just an ideea and the mockup might look slightly different.
SignUp page and dashboard:
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Loyalty programs directory and loyalty page for one store:
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Interviews with Potential Users
| Person | Pros | Cons | Interviewed By |
|---|---|---|---|
| Andrei | - Enjoys the idea of centralizing loyalty programs - Finds the concept time-saving and convenient - Appreciates the potential for exclusive offers |
- Concerns about data security and privacy - Wants assurance that all his favorite stores are included - Worried about potential technical glitches |
Ionel |
| Dan | - Overwhelmed with current loyalty apps, likes centralization concept - Likes the idea of managing rewards in one place - Interested in exclusive offers and discounts |
- Concerns about potential complexity of the app - Wants assurance of easy navigation within the app - Concerned about potential loss of individual store perks |
Bogdan |
| Diana | - Excited about the idea of loyalty programs for tech-related shops - Likes the concept of a unified platform for tech stores - Eager to explore new tech-related loyalty programs |
- Concerns about the app covering a broad range of stores - Wants assurance of a diverse range of exclusive offers - Worried about potential bugs in the app |
Olivia |
| Alex | - Might consider using the app for visibility and simplicity - Interested in a seamless and user-friendly experience - Open to the idea if the app gains popularity |
- Concerns about time investment in setting up the app - Wants assurance of minimal disruptions to his routine - Skeptical about the actual benefits of loyalty programs |
Mihai |
User Persona
Meet Emma, a vibrant 30-year-old marketing manager with a passion for efficiency. Having graduated with honors in Business Administration, Emma thrives in the dynamic world of marketing. She enjoys exploring the latest tech trends and often shops at a mix of local boutiques and online tech stores. With a moderate tech proficiency, Emma values time-saving solutions. Her busy schedule as a marketing professional makes her seek streamlined approaches, and she appreciates exclusive offers.
Demographics:
- Age: 30
- Occupation: Marketing Manager
- Technology Proficiency: Moderate
- Shopping Behavior: Occasional shopper, values time and efficiency
Goals:
- Simplify and centralize loyalty programs
- Save time and space on her phone
- Enjoy exclusive offers and discounts
Pain Points:
- Difficulty managing multiple loyalty apps
- Limited storage space on the phone
- Lack of time for intricate loyalty program setups
Behaviors:
- Prefers apps that are easy to navigate
- Values personalized and exclusive offers
- Open to adopting new digital solutions if they provide clear benefits
User Stories
- As a Frequent Shopper
- Goal: Manage all loyalty programs in one centralized app.
- Benefit: Easily track and redeem rewards, reduce phone clutter.
- As a Busy Professional
- Goal: Quick, easy access to loyalty rewards.
- Benefit: Save time and space on phone.
- As a Senior Citizen
- Goal: Easy-to-navigate app for managing loyalty rewards.
- Benefit: Simplify the loyalty program experience.
- As a Student on a Budget
- Goal: Maximize rewards and discounts in one app.
- Benefit: Manage finances effectively.
- As a Retailer
- Goal: Integrate store’s loyalty program with PunctConnect.
- Benefit: Reach wider audience, provide seamless customer experience.
User Flows
- Account Creation and Setup
- Actions:
- Download PunctConnect.
- Create user account.
- Link existing loyalty programs.
- Outcome: All loyalty programs managed in one place.
- Actions:
- Viewing and Managing Rewards
- Actions:
- Access centralized dashboard.
- Check points and rewards.
- Outcome: Efficient tracking and redemption of rewards.
- Actions:
- Receiving and Utilizing Offers
- Actions:
- Receive and view exclusive offers.
- Redeem offers while shopping.
- Outcome: Enhanced shopping experience with exclusive benefits.
- Actions:
- Feedback and Customization
- Actions:
- Provide user feedback.
- Experience personalized customization.
- Outcome: Tailored app experience based on user preferences.
- Actions:
Lead Generating Campaign
- Forms
- We use FormSpree to subscribe interested future customers to our newsletter. This allows us to have a customizable approach to gathering data in a structured manner, whilst being transparent on what we fetch from users.
Bringing people on our page
We chose to share our page on Instagram because we find Instagram an excellent choice for promoting our discount platform. Its popularity and focus on visuals let us present our discounts attractively and engagingly. By using popular hashtags and collaborating with influencers, we can reach a wide audience that’s keen on finding new deals. Instagram’s user-friendly design makes it easy for people to see and appreciate our discounts, making it a great way to attract new users to our platform.
We also chose to share it on WhatsApp cause we see WhatsApp as a valuable tool for promoting our platform due to its direct and personal communication style. With this, we can send updates and discount offers directly to our audience’s phones, making it more likely they’ll see and engage with them. This platform allows for the creation of groups or broadcast lists, where we can share deals and updates with a large number of people at once, while still maintaining a personal touch. Plus, the widespread use of WhatsApp means we can reach a diverse and extensive audience. This direct and personalized approach can be especially effective for word-of-mouth marketing, as users can easily share our discounts with friends and family.
Market research
Size of the target market
As outlined previously, our market consists of frequent shoppers, tech-savvy consumers and busy professionals. As a result, we would focus on the segment of individuals working in white collar jobs According to EURES (European Employment Services) , there are 3.5 million people working in the services sector in Romania. This will be our initial target market. Should we hit a plateau, we will expand to other segments of the market. For example, [according to Newzoo, there are 10.5 million smartphone users in Romania.
Globally, 50% of the working population is employed in the services sector. This means that there are around 1.6 billion people working in the services sector.
There is scarcity in data regarding the usage of loyalty programs in Romania. However, we will make an approximation based on the installation numbers on Google Play and official press releases for the competition, in the following points.
Competition brief view
We have found 5 main competitors in the global market.
Apple Wallet has 507 million global users. However, it is only available on iOS and Romania is an Android-dominated market, with only about 1 in 4 individuals owning a smartphone running iOS.
Similarly, Google Wallet has over 150 million users worldwide. However, Apple and Google Pay are not dedicated loyalty program apps, but rather digital wallets.
Stocard has over 70 million users in more than 40 countries.
Fidme has over 5 million users worldwide.
VirtualCards has over 700.000 users.
Market share
It is difficult to estimate the number of users of the competition in Romania based on the available statistics. We will assume firstly that the global market share is similar to the Romanian market share. Secondly, we will improve the previous assumption with the observation that that the number of Apple Wallet users should be around 25% of the number of Google Wallet users, based on the market share of iOS in Romania.
Therefore we estimate the state of the loyalty program aggregator market as follows:
- Google Wallet: 56%
- Stocard: 26%
- Apple Wallet: 14%
- Fidme: 1%
- Others: 3%
Estimation on our market share
We have also found a statistic from 2020 of the growth of Stocard in Belgium and Netherlands. It is unfortunately hidden behind a paywall, but we can see a brief summary of the statistic.
We can observe that the number of users has grown from around 500 in 2017 to 1000 in 2018, 2000 in 2019 and 3000 in 2020. We expect our growth to follow a similar trend, with users having a 50%-100% increase year over year, plateauing at around 1 million users in Romania, if the business model is successful.
Considering our competitive landscape and market dynamics in Romania, here’s our revised market share and value estimation for the first five years post-launch:
Year 1: We’ll aim for a 5-10% market share, focusing on the dominant Android user base in Romania and differentiating ourselves from competitors like VirtualCards. Years 2-5: We anticipate a yearly growth of 10% in market share. By Year 2, we aim to capture 15%, increasing to 20% in Year 3, 25-30% in Year 4, and 30-40% by Year 5.
Total Market Value
We are working with an estimated total market value of $2 million for the Romanian loyalty program market.
Our Market Share Value Projection:
- Year 1: Aiming for a 5-10% market share, our value in the market would range from $100,000 (5% of $2 million) to $200,000 (10% of $2 million).
- Year 2: With a projected growth to 15% market share, our value would be approximately $300,000 (15% of $2 million).
- Year 3: Increasing our market share to 20%, we anticipate a value of around $400,000 (20% of $2 million).
- Year 4: Targeting a 25-30% market share, our projected value would be between $500,000 (25% of $2 million) and $600,000 (30% of $2 million).
- Year 5: Aiming for a 30-40% market share, we could expect our value to be in the range of $600,000 (30% of $2 million) to $800,000 (40% of $2 million).
We have planned an aggressive growth strategy to increase our market share, which reflects our confidence in PunctConnect’s unique value proposition. Our primary focus is to take advantage of the predominantly Android market in Romania. Based on our strategic plans, we estimate that we will effectively compete with and differentiate from existing players, especially in areas where iOS-focused solutions like Apple Wallet have less reach.
However, please note that these figures are projections based on our current understanding of the market and our competitive strategy. Several factors, including market response, operational efficiencies, and external economic conditions, will impact the actual performance. Regular monitoring and strategic adjustments will be crucial to achieving these targets.
Conclusion Regarding Profitability
Considering the ambitious market share growth projections and the estimated market value of the Romanian loyalty program market, PunctConnect is positioned for a promising financial trajectory. Our approach, focusing on the dominant Android user base and differentiating from competitors, positions us well to capture a significant portion of the market.
With our market share targets ranging from 5% to 40% over the first five years and the total market value estimated at $2 million, we anticipate a steady increase in revenue. This growth is expected to be progressive, reflecting both our expanding market presence and the maturation of our offerings.
It is important to note that these projections are based on current market conditions and our strategic plans. We must remain adaptable and responsive to market changes, customer feedback, and competitive dynamics to ensure long-term success and profitability.
Working with feedback. MVP
We took into account what we learned from users and we discussed with two major stores in Romania: Lidl, which already has a loyalty app, and Supermarket Cocoș. By using these two valuable sources of reference, we managed to construct an MVP.
MVP features and insights from user-based feedback
We initially thought of having an app with a stack-like layout to show offers, or cards, as Google Wallet does for their credit cards.
This approach works if we want the user to see a specific platform first, perhaps because it is also one of the advertiser supporters of the app. The following pieces of feedback show the reasoning for scrapping this idea.
6 out of 10 are frustrated by the lack of notifications about the offers of the stores
It is difficult to see how intrusive notifications are for users. For some people, it can even trigger anxiety. For now, we opted to inform the users of offers via the home page instead of notifications. This is, in our view, a compromise between informing customers and not bothering them too much with messages.
6 out of 10 use at least 2 loyalty apps
This is why we opted to have a singular QR code. It eliminates the hassle of steps of browsing loyalty cards and choosing the platform.
8 out of 10 consider of at least somewhat importance storage concerns
We opted to use a web-based platform instead of a classic app. All you need is a shortcut. And this functionality is supported for all of the major platform (Android, iOS, Windows, Linux). We also created PunctConnect to have a responsive design, regardless of the size of the screen.
MVP features and insights from store-based feedback
Supermarket La Cocoș
The discussion with Supermarket La Cocoș was favorable. We tried to look for their weak points, and we indeed found that the lack of an advanced digital platform’s effects are felt.
Upon showing them an initial version of the MVP, they said they are open to collaboration, provided we can somehow prove the growth of customers via a more advanced plan, that we can support the shop personnel, and that we can protect the users’ data.
After these findings, we updated our MVP to include a Privacy Policy Page through which users consent for us to use their data (email, phone) responsibly and share them with data analysis software (like Google Analytics).
Lidl
After an email-based discussion with Lidl, we realized our option is not feasible for large, established stores. They would already have a popular loyalty app for which they devote their effort and costs. In particular, the Lidl representatives considered, and rightfully so, that the costs of migration and training the devs would outweigh the benefits.
Conclusions
We concluded that our platform would only be a good idea for smaller shops, or stores without a digital platform. However, it is not practical to approach bigger names, due to their already-established digital identity.