RetailX Labs

SAAS based Retail in-transaction advertising platform

Transcript

1. Multiplying Retail! SAAS based Retail in-transaction advertising platform
2. The Team Abhishek Shah – Business Ex-Tyroo, DealsAndYou, Fetise Dipankar Sarkar – Product IIT-Delhi, Full Stack Engineer, Entrepreneur and Book Author Rochit Jain – Operations Ex-Quasar/Ogilvy Neo and ex-Styleos
3. Retail performance marketing is BROKEN! (We know. Our founders have been on both sides of the table)
4. RetailX Labs A SAAS platform to help drive targeted customer acquisitions for retail merchants. On cost per performance mode. We behaviorally target in-transaction smart rewards to customers of partner publishers. Through a proprietary ad serving engine.
5. The Market Problem • Ecommerce in India is booming in last few years with heavily VC funded players reaching $800mn market size in 2013 but all merchants are bleeding in customer acquisition • Performance Marketing accounts for less than $10mn of the overall $100mn ecommerce advertising industry mostly driven by Coupon sites who are harmful to the merchant’s business eating their organic customers(http://bit.ly/165Rr9v) • Merchants today are struggling with heavy price wars and low traffic conversion (average 1%) and every vertical is heavily cluttered with dozens of undifferentiated competitors
6. Our Insight • Is that, if there is an alternate channel for retail merchants to acquire continuous flow of targeted relevant transacting customers without negative brand dilution they would be willing to shift marketing budgets from current primary channels like google adwords or facebook PPC which are not performance driven • Is that, if there is a plug and play platform for publisher merchants to integrate value add offers for their customers which helps them increase conversions and differentiate from competition – they would be willing to distribute non competiting merchant exclusive offers to their customers post successful transaction. A good example of such concept (http://www.goibibo.com/offers/5000/)
7. Our Business Proposition • Is to approach retail merchants to offer exclusive offers to RetailX Platform to be distributed through partner publisher network on a cost per offer redemption basis – based on targeting parameters defined by the advertising merchant leading to high conversion rates at merchant end • Is to approach partner publisher merchants to use RetailX API to promote personalized value add offers at their point of sale to incentivize their visitors and monetise their customers (in-transaction rewards platform) • RetailX puts together a fully self serve SAAS platform to aggregate all merchant offers, categories it by audience demographics, category of merchant, location, quality of offer etc – and builds a proprietary ad serving engine to auto match relevant offers with relevant partner publisher merchant audiences.
8. Example of the Model
9. Retail Merchant Benefit
10. Partner Publisher Benefit
11. Approach retailers and publishers to upload their special offers and inventory on RetailX SAAS Platform through a two way API Publishers promotes the merchant offers powered by RetailX to their customers in form of incentives/promotions Post relevant action publisher unlocks the specific offers selected by the customer and delivers details to the customer email id Customers visits the merchant to make a transaction and apply the offer code to avail the special offer How the business process will work
12. Under the Hood • Illustrative example of how RetailX Platform will fix the Retail Customer Acquisition Problem! Descriptions Google/FB RetailX Platform Mode PPC Cost per coupon Average Costs Rs 10 per click Rs 10 per redemption Average conversions Less than 1% More than 10% Average Cost per Acquisition More than Rs 1000 Less than Rs 100 Average Ticket Size Rs 1000 – Rs 1500 Rs 1500 – Rs 2000 Spends to Revenue Ratio Less than 1:1 More than 1:10 Repeat Users % Less than 5% More than 10%
13. The Market Size and Potential There is a big gap in retail performance marketing domain in India! 80% of ecommerce advertising spend goes to Google Adwords & Facebook PPC Ecommerce in India is worth $800mn in 2013 There are 100+ VC funded ecommerce merchants in India Over 1000+ National Retail merchants in India Affiliate Marketing is broken and lacks scale
14. Competition Mapping Company Nature Primary Audience Revenue Stream Freecharge Consumer Portal College students Prepaid recharges and coupon distribution Tyroo/Vcomm/OMG /DGM/etc Affiliate Ad Network Indian long tail publishers mainly coupon sites 20-30% commission on publisher revenue Google/Facebook Contextual ad networks Global products Cost per click • Asofnow we will be unique as no player globally has taken a platform approach to such in-transaction rewards network. • We will win because we will go after a fully self serve platform approach and take the product global specifically to South East Asia
15. Go to Market Plan Signup 10 big national retail and ecomm merchants (ex MacD, CCD, Flipkart, SnapDeal etc) Singup 3 big branded publishers (viz goibibo, bookmyshow etc) Sign agreements and start core product development Launch pilot with the 10 merchants and 3 publishers and fine tune the product/commercials Launch and scale merchant and publisher side to kick in economies of scale Raise Series A funding and replicate the platform to SEA with local sales teams Iterate and repeat success with USA/Europe markets
16. •Merchants today are increasing moving to performance driven marketing hence demand side is exploding but the supply side chokes beyond a certain scale and the CPA goes up significantly We Deliver Performance Advertising on a Scale! •We offer a hassle free, plug and play self serve solution to publishers to monetise their customers, increase their conversions and build differentiation from competition with our in-transaction rewards platform We offer Monetisation! •We develop a proprietary ad serving engine which behaviorally targets smart rewards to those customers that are most likely to opt for them thus creating win-win for both the merchants and publishers We optimise! Core Strategy – why will this work?
17. What’s the Financial Model? Build long term equity Earn quickly after launch Invest upfront In creating the platform and merchant/publisher ecosystem From merchant on cost per offer redemption model Via IP of the B2B self serve platform Via consumer facing destination portal in future From corporate through white label deals (example CITI rewards) Via long term lock is and enterprise platform
18. What are we looking for? • $100k seed investment on convertible note at 20% discount to Series A (covers cost to launch pilot and cover India market over next 12 months with basic capex) • Introductions to large national retail merchants with whom we could get started immediately.
19. $100k over 12months to be used for: Cost for pilot and India market coverage Cost per month in Rs Costs for 12 months in Rs Notes Salary of 3 member core team 1,00,000 12,00,000 CEO, COO, CTO Office Rent 20,000 2,40,000 Office rent for 10 seater office in Mumbai suburbs General Office Overheads 10,000 1,20,000 Infra overheads Technology Costs 1,00,000 12,00,000 Costs of 1 Developer, 1 Designer, Hosting, Bandwidth, etc Sales Teams – 2 Sales Manager each for Publisher and Merchants Development respectively) 1,00,000 12,00,000 Averaged at 25k per person per month Travelling and Accommodation 10,000 1,20,000 Local and International traveling, etc. Marketing and Advtg 25,000 3,00,000 Test marketing, PR costs, etc. TOTALS 3,65,000 43,80,000 Remaining fund as a cash buffer
20. Our Threats/Deaths/Weaknesses • Competitors like Freecharge extending into platform/network play for in-transaction rewards model • Extremely competitive retail industry facing regulatory blocks in raising external funds for continued growth • Alternate marketing mediums like TV, Print for mass branding and reach for merchants not focussed on performance
21. Outcome of the Business From an IPO if we create a massively hit retail performance marketing network As a network acquisition by companies who will want our platform and team Acquirers could include Google, Yahoo etc An acquisition from Companies like Groupon for our successful portfolio of Merchants and Publisher Ecosystems Acquisition from media agencies such as WPP, OMD who want to offer platform as a service to clients globally Exit via M&A or IPO
22. Thank you for your attention! abhishek17111@gmail.com Mobile - 09004877738