CauseCard

Cause Marketing & Customer Loyalty Program Overview

Market Size Assumption: $3B Annually 1.5M retail businesses total in US. At a price point of $200 per month we’re looking at an annual market size of approximately $3.5B

Q: How many face to face interviews you did with customers A: 23 (Feedback to follow) Q: Do customers have the problem that you think they do? A: Yes Q: Are they interested in your solution? A: Very Q: Are they willing to pay you for it? A: Yes, as evidenced by the large number of businesses who are already use discounting and daily deals sites as a marketing/advertising strategy. Our solution provides a similar result (more new customers) without the high costs of discounting or “partnering” with daily deal type sites.

Q: Explain what you learned from customers interactions A: That a solution like this is lacking in the market place and SMBs are looking for a solution like this. Q: Have you modified the idea as a result of this feedback? A: No Q: Do you think this opportunity is worth pursuing for the OEP A: Definitely

“We are just learning about the new enhancements with fundraising, email marketing, text messaging and target marketing to our database and look forward to learning more. We were spending over $500.00 per month on all kinds of ads, gimmicks, newspaper, coupons, and other forms of advertising without near the results offered by CauseCard. “ “We can increase spending in the bar, the lounge, open play, just about anywhere we wish with a little creativity. The program is ready to do just about anything we wish and we can track the results and keep offering incentives to our customers who love all the promotions.” “I have been looking to find a simple, effective way to offer my customers rewards for spending money and visiting my center more often. I also wanted a program to build my database without the need to fill out paper forms as other programs I had tried previously.” “As a big proponent of fundraising, I was hopeful of finding a solution that would incorporate the rewards program with a fundraising solution in order to offer a percentage of money spent at the center back to certain non-profit associations.”

“The fact that the system is web-based allows me to see what is going on at the shop with my employees when I’m catching up on paperwork back at the office. There is a certain accountability that comes with the thought that someone IS watching over the shop when I’m not there.” “It is the strongest marketing tool that we have seen in some time” “It gave us the opportunity to increase sales and frequency of the people who support us the most” “It’s the easiest way of collecting names for our database I have ever seen in 30 years.” “it's a fundamental function we need to market to a changing customer base.” “I am looking forward using this program outside in our community for fundraising opportunities.” “The most intelligent new customer acquisition strategy I’ve ever seen.”

“Please sign me up for the fundraising program so I can start getting more names and emails. “ “It’s still the exact same price really but it’s a totally different perception. ” “Customers upgrade their purchases and spend more money then they would have originally solely because of the cash back rewards. Your program is awesome.” “I really like that this doesn’t devalue my brand.” “This program allows businesses to partner together to help those in need. I have been working with a lot with non-profit organizations, schools, churches etc. They are excited to find a program which provides them with complete transparency and accountability with down to the penny accuracy!” “Our business is being seen as a business that cares. Give and you shall receive!”

We’ve launched an online survey targeting business owners to gather feedback and validate our business model. The questions have been designed to ascertain why business owners donate to local causes, why they don’t, barriers they face to doing so, etc. The survey is ongoing. Here are some preliminary results: 50% of respondents say that their businesses support local causes

50% of these supporters cite a desire to “give back to the community” as their number one reason for doing so

75% of respondents do not currently have a loyalty program

50% of those without a loyalty program ranked “lack of time” as a primary reason

50% of those without a loyalty program considered loyalty programs as “too complicated” as a primary reason

100% of the respondents who currently have a loyalty program view it as yielding a positive ROI

So far, no respondents have used a daily deals site. Reasons cited include:

“too complicated”

“no financial benefit”

“devalues my business”

We’ve also held meetings with local business owners to gather feedback.

100% of respondents said that their businesses currently supports local causes

75% of these supporters cited a desire to “give back to the community” as their number one reason for doing so

75% of merchants we met with do not currently have a loyalty program

25% of those without a loyalty program ranked “lack of time” as a primary reason

75% of those without a loyalty program considered loyalty programs as “too complicated” as a primary reason

Of the respondents who currently have a loyalty program 100% felt it was overly complicated and not beneficial

None of the businesses we’ve met with have used a daily deals site. Reasons cited include:

“no financial benefit”

“devalues my business”