Change ahead!

Over the past couple of weeks we've made some changes in a new direction - let us tell you how this came about...

Problems our competitors face.

From speaking to three potential competitor start-ups at Web Summit - the biggest obstacle they face in expanding is competition with other deals apps/websites. They have both identified the need SMEs have for data and interestingly they have not had trouble getting businesses on board. The trouble they have is getting customers to use their app. The SMEs customers have deals coming at them from every angle every day and they do not see the value in signing up for more deals.

1. So how to we stand out from the groupon / living social/ / grabOne / dealrush? 

We do not provide discounts we provide gifts.I have researched the consumer affect on discounts and the outcome is that a discount is perceived as being 'low quality' and a bargain or sale does not lead to loyalty to a brand. A gift makes the customer feels appreciated. Gifts are more effective at leading to brand loyalty than discounts.

We should refrain from using words like 'specials' or 'offers' or 'discount' or 'free'. We should emphasise 'loyalty' 'appreciation' and 'gratitude'.

How we set this up from the App perspective?

1. The customer downloads the app to alert them on gifts that they would enjoy in their area. 

2. The customer fills out their details to ensure they receive tailored gifts. i.e date of birth (for Birthday presents) gender, occupation, interests/hobbies.

3. The customer decides if they want daily,weekly, monthly or no communications about free gifts.

4. The customer is notified by GPS when there is a gift in their location.

4. The customer can decide to share the gift with a friend and they can both use it together.

5. The customer needs to fill out a 5 question feedback form in order to have the gift deducted from bill. This is to see if they would like similar gifts in the future

6. We can allow customers to search for gifts based on their mood

The main concept we see working is that it is instantaneous and shareable. The customer is with their friend walking down Grafton street. They get a pop-up on their phone - free scoop of icecream in Ginos with a purchase of speciality coffees. The app user accepts the gift shares it with their friend and they instantaneously enjoy the gift. They both give feedback on experience.

If we alternatively are giving them 20% off icecream and coffee at Ginos they are picking it because it is cheaper than other alternatives. What happens when Ginos is full price the following week? They won't return because they perceive Ginos as being lower quality than alternatives and they don't want to pay full price. The lasting impression with Engage digital is that they get will be the good experience and free gift in Ginos. 

How will this work from our clients perspective?

1. Ginos wants to introduce a new product to appeal to young professionals as their customer base is mostly kids and students. It is coming into the winter and icecream sales are dropping they decide to trial speciality coffee.

2. We send a notification to every young professional in the area. 

3. We provide Ginos with analytical data on; 

• How many people availed of the gift
• What was their demography
• What did these people think
• What time of day did they purchase

4. We will provide Ginos with real solutions based on the data.

5. We help Ginos get a wide base of LOYAL customers by inviting customers who provided positive feeback to join their 'VIP club' where they can avail of a special month gift. 

Pricing plan: 

Ginos can send out a gift with no charge and Customers can avail of the gifts for no charge. If Ginos would like to avail of survey, analytics or VIP club they will be charged a monthly subscription.

How do we test revenue streams? 

1. Full steam ahead with customer interviews 

Simply ask the questions - 

Do the discounts make you feel more loyal towards the brand? Why? Why not?

Do carry loyalty cards for multiple shops that provide you with similar services?

How do you define loyalty?

My findings are if people have a card for one coffee shop they have a card for multiple coffee shops.Therefore LOYALTY CARDS do not = LOYALTY. 

2. SME interviews

Ask our set of questions and they ask how they measure customer feedback?

Finally, we'd like to link some theory from our course into our project 




The book is called 'Customer Loyalty - How to Earn it, How to keep it' by Jill Griffin.

It goes through the 7 key stages of growing a loyal customer.

1. Suspect (Everyone who might be interested)

2. Prospect (someone who knows about and has a need for your product/service)

3. Disqualified prospect

4. First time consumer

5. Repeat consumer

6. Client

7. Advocate

Here is how I was thinking we incorporate this;

• We send a gift to every suspect, this turns them to a prospect 
• We disqualify those not interested and those who gave a bad feedback
• We then track how often the consumer frequents the business. 
• Once they purchase a second time they are a repeat consumer.
• If they purchase once a month they are a client and we then help them become an advocate of the business by allowing them to share special gifts with friends.

Proposed new Value proposition for SMEs customers

Engage Digital provides SMEs customers with gifts tailor made to their specific interests. SMEs customers can share gifts with like-minded friends, SMEs customers provide feedback to the SME to avail of the gift

Our next blog will tell the exciting tale of our financial projections! :)

Stay tuned