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Startup, loyalty program startup, Drop Technologies Inc., payment method, application, phone, registration process, security, communication, target audience, young targets, finance, growth, company, partners, Sephora, eBay, Referral marketing, customers, social advertising, influencer marketing, social media, influencers
Drop Technologies Inc. is a loyalty program startup that was formed in 2015 and is based in Toronto, Canada. This startup offers a loyalty program to its consumers. The concept is straightforward: Drop users download the application on their phone, create an account, and attach their preferred payment method to the app. When a consumer uses this payment option to make a purchase in one of Drop's partner stores, the customer gets points that may be used to save money on future purchases.
Drop's top objective is to grow a huge user base so that it may become profitable. Drop earns money by capturing a portion of its users' purchases. When users finish the registration procedure and make a purchase, they become profitable or "revenue-generating users." Drop, on the other hand, lacks/fails in this area. In fact, many people abandoned the registration process, primarily owing to security concerns. Drop was unable to generate any income as a result of this situation, which is at the root of the marketing problem.
[...] In fact, it does not show whether users have completed the entire onboarding process, and personalization of the messaging is lacking. It also generates a highly anticipated customer lifetime value of $40.29 for investors and it is only possible to have fully registered users at a high cost (CAC is $13.43). Influencer marketing is a type of social media marketing that involves endorsements and product placement from influencers who claim to have expert-level expertise or social influence in their industry, giving them a specific audience. [...]
[...] They are also very responsive when the proposed solutions correspond to their lifestyle. Adapting the communication to the target appears logical to me. To do so, Drop has an undeniable strength: its many and diverse partners that allow it to reach a specific audience depending on the brand highlighted (Sephora for fashion lifestyles, Lululemon for sports lovers). How was Drop able to grow so quickly within two years of launching? Building a large user base and gaining finance are the two most important goals for firms like Drop. [...]
[...] Second, Drop's success was aided by the company's clear and stated mission statement: "to provide a seamless, "all for one", loyalty program that rewarded particular shopping habits for each individual customer". Indeed, having a clear and focused aim and position statement helped the company to focus its efforts and funds on providing trendy, creative and unique experiences such as food trucks and offering concert tickets. Third, defining a target was critical to Drop's success: it's important to target an appealing and increasing marketing. Millennials represented about a third of the overall Canadian population, and 80 percent of those millennials had already used loyalty programs. [...]
[...] What methods of communication could Drop employ to reach out to its two primary audiences directly and personally? What could Drop do to alter customers' perceptions so that they become revenue-generating customers? As a result, the solution should focus on user engagement as well as the efficiency of communication and advertising campaigns. You must first understand how the audience views the brand in order to assure user engagement and general improvements. Second, by being open to comments and sharing user testimonials, you must establish and maintain a positive relationship with your users. [...]
[...] However, numerous problems were revealed as the intended purpose was questioned and the corporation lacked understanding on how to manage this type of marketing channel. In fact, this marketing channel is time consuming, finding influencers with the correct reach or audience is difficult. Also, it's difficult to tell how many people have been recruited using this strategy and it's unclear whether this channel is resulting in profitable customers for the business. Finally, finding the proper strategy is difficult: numerous strategies were tried, resulting in a loss of time and money. [...]
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