cfc summary 20121128

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Executive Summary November 30, 2012 Connecting the causes you care about with the places you shop . . .

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Page 1: Cfc summary 20121128

Executive Summary

November 30, 2012

Connecting the causes you care about with the places you shop . . .

Page 2: Cfc summary 20121128

Consumers want to support causes that matter to them via

their day-to-day purchases

. . . of Moms want to “Buy a product in which a portion of sales goes to the

support of the cause or issue”

. . . of Moms are likely to switch brands for a product or company that

supports a cause they care about

. . . of consumers would be willing to travel 11 minutes to go to a specific store

to purchase a product that supports a cause they care about

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 2

92%

93%

70%

Sources: The Cone Cause Evolution Study, 2010; The “Do Well Do Good” Public Opinion Survey on Cause Marketing, 2010

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This trend is clear

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Communities For Cause, Inc. 3

Our platform brings this to a local level

Page 4: Cfc summary 20121128

“Scrip” and “daily deal” models allow consumers to support

causes/schools through their spending – a $15B industry

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 4

Existing models . . . . . . shortcomings . . . We have a better solution Small percentage of sales goes to causes

(4% or less)

Traditional scrip focuses on nat’l retailers who place little value on acquiring local customers

Some do not acquire new customers but only track existing ones – limited value to merchants

Promoting, selling and tracking of cards is a lot of work for causes with little return

The user experience is poor and often results in breakage (10-25% of cards/coupons go unused)

“Daily deal” sites do not create customer loyalty

Focus on new and loyal customers

Higher value to Merchants

We eliminate cards and breakage

A better User Experience

More than 3-4X improvement

Greater return – less effort for Causes

Leverage mobile technology

Additional revenue streams

Page 5: Cfc summary 20121128

“Communities for Cause” connects Causes, their Supporters

and Local Merchants

Participating Merchants are promoted within the cause membership and, in

return, donate a percentage of associated sales

Local Merchant

Cause Supporters

Merchants offer a donation as a percent of each sale

Causes promote local merchants to their members

Supporters shop with local merchants to earn donations

1

2

3

5 Proprietary and Confidential Property of

Communities For Cause, Inc. 12/11/2012

We retain 20% of donations as a processing fee

Page 6: Cfc summary 20121128

How it works

December

11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 6

Find offers by category or location

1 Register your purchase as you shop

2

See your efforts making a difference

4 Confirm donations with a QR code

3

Page 7: Cfc summary 20121128

We made notable progress in a very short time

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 7

Timeline

• Nov. '11: Company formed • Dec. '11: Beta product (iPhone) • Jan. '12: Pilot launch with 1 school • Mar. '12: v1 Product (iPhone and

Android) • Mar-May ’12: Initial rollout across

memberships in Orange County

Causes – Partial List (70+ represented in Orange County Area)

Education • Irvine Public Schools Foundation

(all 32 public schools in Irvine) • The Pegasus School • Huntington Beach Educational Foun. • Kaiser Woodland Schools Foun. • Fountain Valley Educational Foun. US Armed Forces • The Injured Marine Semper Fi Fund

Medical • American Red Cross • Beckstrand Cancer Foundation • Cure Duchenne • Leukemia & Lymphoma Society • Moving Hearts Foundation Youth Development • YMCA Newport Mesa • Big brothers, big sisters

Merchants – Partial List (120+ represented in Orange County Area)

Restaurants • Pascal • Café Jardin • Chili’s • Jersey Mike’s • Wingstop • Roundtable Pizza • Lamppost Pizza • Red Brick Pizza • Subway • Zpizza

For Kids • Mathnasium • Pump it up • 5 Seas for Kids • Music and the Arts for Kids • Studio Fusion Snacks and Treats • 33 Degrees • Juice it Up! • Baskin Robbins

For Moms • Lugano Diamonds • Armando – A Joshua

Christopher Salon • Nails by Kim • 5 Seas Boutique • Verbania Boutique Sports and Recreation • Two Wheels One Planet

Bicycles

Auto • OC Buick, Cadillac, GMC • Pristine Motors Wines and Spirits • Main Street Wine Company • Rolfs Wine Household • Crystal Coast Optometry • College Nannies & Tutors • Critter Clipper • Crown Cleaners

Page 8: Cfc summary 20121128

And usage is accelerating with zero promotion

December 11, 2012 Proprietary and Confidential Property of

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0

100

200

300

400

500

600

700

800

900

1000

Downloads Transactions

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Mobile App Searches

1,000 users . . . 1,000 transactions . . . And 10,000 searches

$215,000 in Merchant Sales in 8 months

Page 9: Cfc summary 20121128

The pilot verified key assumptions

What we learned . . .

• 50% of users logged-on over multiple months (2+ months)

• We drive incremental sales for merchants

(avg. 14 per merchant, highest is 112)

• High retention – haven’t lost a single merchant

• High adoption – 40%+ in some schools

• Broadly relevant to causes and merchants

• Merchant acquisition at <$300 is feasible

• Bounty is an effective vehicle to incent causes in acquiring merchants

($150/merchant)

• No resistance to our 20% processing fee

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 9

Page 10: Cfc summary 20121128

We provide greater and sustainable value to all constituents

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 10

Merchant Acquisition “Compelling”

User Acquisition

“Near zero cost”

Consumer Experience “Frictionless”

• Merchants are acquired once and remain on the platform (i.e., no re-acquisition) • Risk free value proposition (i.e, only make donations when you get a sale) • Loyalty-driven value proposition (i.e., not mercenary bargain shopping))

• Co-marketing with causes for cost effective acquisition • Greater adoption rates (e.g., opt-in, download, transact) • Our platform powers the cause’s program (i.e., we’re in the background)

• No breakage (i.e., unredeemed coupons or gift-cards) • Mobile app to stay “top of mind” (e.g., alerts, notifications, LBS) • Empowes users to support their cause when and where they want (i.e., on the go)

Page 11: Cfc summary 20121128

Our model has notable advantages

December 11, 2012 Proprietary and Confidential Property of

Communities For Cause, Inc. 11

Groupon MOGL CfC

Consumer Proposition

Bargain shopper Mixed – loyalty rewards and cause marketing

Shop for your cause

Merchant Proposition

Entice bargain shoppers to sample

Loyalty – to merchants or the platform?

Incremental sales from loyal customers

User Acquisition

$30 $12 $2-3

Merchant Acquisition

$4000+

“offer by offer”

$2500+

“Feet on the street”

$200-300

Acquire once “Causes as a channel”

Quarterly Rev/Customer

$15 $12-20 $27

Margin

39% 30% 56%

Page 12: Cfc summary 20121128

Financials

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Communities For Cause, Inc. 12

Page 13: Cfc summary 20121128

Seed round

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Page 14: Cfc summary 20121128

Management Team

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Carlos Aguilar Co-Founder CEO

Ernst & Young • Global Mkts Leader • Customer Strategy

The Walt Disney Co. • VP Marketing & Alliances • VP New Media & Technology A. T. Kearney • Technology Strategy

Jennifer Aguilar Dir. of Community

Gary Allhusen Co-Founder Chairman

OC school • board member,

development committee Silver Bridge Associates • CEO, IT Services

Caneum, Inc • COO, IT Services Startup EDS and A. T. Kearney • Principle, IT Strategy.

The Pegasus School • Scrip fundraising chair

Special Olympics • Volunteer manager

Cap Gemini • Mgr Software Devpmt Ernst & Young • Mgr Software Devpmt

Page 15: Cfc summary 20121128

Advisory Board

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Communities For Cause, Inc. 15

Lawrence Aldridge Advisor

Jeff Goffman Advisor

Aaron Sloman Advisor

Kurt Mulville Advisor

• Partner at Orrick

Rob Dang Advisor

Jeff Sakaguchi Advisor

Pat Wilkison Advisor

• Chair. American Red Cross LA • Fmr Accenture Partner • Fmr McKinsey & Co. • Technology Executive

• Marketing Western Digital • Tech investor/advisor

Blackbook, Cirro, Predixion Software, Flowsearch, twtMob, Moberitus, GenieDB, LegacyDirect

• Partner Fortis General Counsel • Tech startup advisor – Zynga,

Yahoo, mFoundry, et. al.

• GM Perficient SW Devpmt • Founder SpeakTECH • Fmr Sr. Technologist Microsoft

• Chief Alliance Officer, UnitedHealth

• Fmr SVP Alliances, Disney • Fmr VP Global Sourcing,

Disney • Fmr Chief Procurement

Officer, ARCO

• CEO Integrated Oncology Network

• Founder Oncure Medical • Founder US Diagnostic • Fmr Chair Amer Cancer

Society

Erik Anderson Advisor

• Pres. – Anderson Financial • Pres - A. Gary Anderson

Family Foundation • Former VP Trading,

Directors Mortgage • Tech investor/advisor

CMC, Parallax, Savant