Loyalty Rewarded (LR) offers football clubs, charities, telcos and other similar organizations branded proprietary mobile browsers and PC browser extensions that allow their supporters to earn (at no cost to themselves and with no change of behaviour) from their online shopping, searching and general usage of the internet. The business have secured contracts with Everton FC, which has been live for 6 months, and Manchester City FC, which will go live in August 2015.The platform currently works with over 1,000 retailers and the team will be adding over 4,000 more in the coming months.

THE IDEA

PRODUCTS & SERVICES

Once a user has downloaded their favorite football club or charity’s branded browser,they begin to earn rewards.The brand has a direct channel to their supporter and gets much richer information.Loyalty Rewarded has developed a proprietary gamification product that utilises Neo4J’s social graph database to analyze it’s user-base and improve the odds of winning for users with the most ‘reach’ to ensure maximum exposure of prizes.It can then directly calculate the ROI:the value of prize vs. number of sign ups it generated through analysing the social connections of the winner.This allows the company to invest in prizes confident in the number and value of those users it will bring in.

PROBLEM SOLVED

Football clubs find it hard to prove their financial value to their sponsors, but are under increased pressure to do so. The cost of club merchandise is getting prohibitively expensive for fans, creating negative publicity. Clubs are struggling to monetize their large and loyal fan base with a single, coherent solution. Clubs are coming under increased pressure to demonstrate alternative revenue streams in line with the new Financial Fair Play regulations. Clubs’ charitable foundations are having difficulty in raising funds and awareness. Clubs perform poorly at capturing, utilizing and monetizing fans’ data.

REVENUE MODEL

Revenue from the following streams is shared between the fan, the club and LR:
1. Affiliate shopping (typically 5% of purchase amount, LR’s share equates to £1.50 per user per month)
2. Search revenue ($16 per 1000 searches a user makes) Display ($1 per month per mobile user)
3. Data ($1 per month per mobile user)
4. Incentivised actions (such as download a partners app,
$0.40 per month per mobile user)

EXIT STRATEGY

Whilst we cannot give definite timescales, we would aim for an exit opportunity within the next 3-5 years. The particular timing would be decided by our experienced board and will be in the interest of increasing its value to all shareholders.
Possible buyers might include Facebook/Amazon/Alibaba/Experian or a Telco.