Post on 15-Dec-2014
description
GiftlessWeek 6 (aka: One extraordinarily tough week)
Paul HayesAdam Neumann
Facebook ads from May 5 - May 12
Poor affiliate enabled CTR
CPA (signup) per campaign
Star wars ad - $2.20Generic ad - $29.97
Geek ad - $30+Hackernews YC - Free but not scalable
Signups are NOT customersLTV = $0
Signup CPA - $2.20Average commission per sale 5%
Break even point - $44.00 worth of goods sold IF conversion rate of signups to customers was 100%
Estimated conversion rate - 5% (best case scenario)Break even point - $880 worth of goods sold per
customer
Do the maths
ProsAverage User session is 3 minutes+
Click throughs are approx 5%Interest based ads
Interest based product discovery validated
1 > Viral co-efficient > 0Karma has been acquired by Facebook
ConsMales buy last minute regardless of
remindersPeople only buy a small number of gifts
a yearCPA (far)> LTV
Do we have a business?
Can we get up and to the right?
Gift Discovery
Pivot OptionsCustomer Segment Pivot - Focus on females
From B2C - B2BOnly recommend Affiliate enabled products
Focus on USA
Our Conclusion
We are trying to fit a square peg into a round hole
Simple (Pool money - give a prepaid American Express card)
Viral as a core user case scenariogroup purchasing (more incentive to share)
Giftiki pays a $1 user get user incentiveGift Card Market
Learn from our Competitors
Simple Viral as a core user case scenario
Photo CardGift Card Market
Learn from our Competitors
Learn from our Competitors
Simple (Give free $10 gift cards)Viral as a core user case scenario
group purchasing of Gift CardsGift Card Market
Wrapps X-Factor
Leverages companies pre-existing customer databasePartners pay the user get user incentive
Friend to friend marketing platformLead Generation for Companies
Another study by Sage Pay, revealed that while on average 7% of visitors to an online store make
a purchase, when directed from social media network, the percentage of visitors who will go to
the transaction section goes up to 71%. Social proof is even more important for e-commerce, as
Simon Black, managing director at Sage Pay, says: “The modern shopper often looks for
reassurance from a positive review, a special offer to make it more affordable, inexpensive
delivery options and a quick, easy and secure way to pay.”
Wrapp went ViralGiftiki and Yougift are adding users fast
Simple Viral as a core user case scenario
Group purchasingFacebook Wall Posting & Lots of it
Gift Card Market
Common Themes
Leverages companies pre-existing customer databaseCompanies pay the user get user incentive
Friend to friend marketing platformLead Generation for Companies
Wrapps X-Factor
What core viral feature can we add that:
Hasn’t been done by our competitors (or preferably by anyone)Is social, viral, fun and awesome!
Is an activity people already do offlineGet’s better the more people you invite!
Fills the missing gap of a group purchased Gift Card?
(Offline) Group Card (online) Group Photo eCard
Everybody signs with a messageEverybody signs with a
single photo and a message
The Frankstein Pivot
Photo eCard
- Group Photo eCard
+ Group Purchasing
of Gift Cards
+ X Factor
eReflectHigh CPAHigh LTV
15,000 Buyers20,000 Prospects
VinspiHigh CPAHigh LTV
Getting customers is one of their biggest problems
USA Gift Card Market (billions)
GiftlessFeedback Most Welcome :)
Paul HayesAdam Neumann