Boost Prepaid Visa -#3DDC52.ppt [Read-Only]

Boost Mobile Prepaid Visa Card
! Retailer Revenue Opportunity
1
Why a Boost Mobile Prepaid Visa Card?
• LIFESTYLE BRAND - Boost is a youth lifestyle brand with
aspirations well beyond the wireless space
• BRAND EXTENSION - Boost corporate strategy is to extend the
Boost brand deeper into our customer's everyday life
• CORE CUSTOMER - As Boost offers new products, our core
customer base (youth market) lacks a payment mechanism
• LOGICAL EXTENSION - As a result of the above, natural first
extension is a prepaid Visa card.
• THE PARTNERSHIP - Boost has launched a Prepaid Visa Debit
Card in partnership with Next Estate Communications (NEC)
• THE DISTRIBUTION - Distribution will originate across existing
wireless customer base and subsequently extend into other
channels (e.g. retail)
2
Value Proposition for Boost
“Boost your lifestyle, Boost your status”
1)
Branding - The Boost Prepaid Visa Card expands Boost’s lifestyle
branding. People want to own Boost products and participate in the
Boost culture b/c it defines who they are
2)
Brand Loyalty - The Visa card extends Boost’s family of products that
helps to engage new subscribers as well as builds loyalty among
existing subscribers
3)
Brand Extension - This product is Boost’s first venture to extend our
business beyond the wireless space; it’s a product that customers will
carry on their person at all times, representing a deeper interaction
with the Boost brand in their everyday life
3
Subscriber Value
Boost wants to continue to evolve our relationship with our
subscribers in a meaningful and valuable way.
1)
Credit Challenged - can’t get a “real” credit card but want the
convenience & status of carrying a card
2)
Control & Monitor Spending - only load $x per month
3)
Safer than Carrying Cash - applies locally or for traveling
4)
Gifting
a.
Sending U.S. cash overseas - avoid expense of converting, wiretransferring, etc. (recipient can also spend in U.S. currency)
b.
Use as mechanism to distribute allowance to kids
5)
Internet Purchases – facilitate e-commerce for segment that could
not otherwise participate
6)
Avoid Reducing Credit Score ! can have a second card without
affecting your credit rating
4
Distribution Strategy
CARD ONLINE ! visit boostmobile.com/BoostVisaCard and sign up
online using your existing Boost Mobile phone number. Card is free
($9.95 value) and arrives with zero balance
CARD IN BOX ! collateral in box with unique PIN allowing the user to
acquire card online or through customer care at no charge
CARD ON PEG ! retail product merchandised with
other prepaid products
5
Value to Retailer
1)
Increased Value of Boost Product Without Increased Cost –
sell more handsets and increase loyalty to the product sold in
stores. The card is free of charge in the box, making the overall
Boost offering that much more compelling to the consumer
2)
Point of Differentiation and Viral Component – use of phone
and card increases points of contact with the subscriber and the
subscriber’s social network. Additional points of contact pushes
more potential subscribers to the retail location to get either a)
their own Boost phone and card, or b) a Green Dot branded card.
More cards = more reload revenue.
3)
Reload Revenue – putting the card in the consumer’s hands will
bring them back to retail to add money to the account, generating
Green Dot reload revenue
Note: Reloading Boost and non-Boost NEC cards has
greater revenue potential than on airtime only products
6
Additional Value to Retailer
•
Significant profit – NEC prepaid charge cards are consistently among the most
profitable retail SKUs in the store – typically delivering 60%+ margins.
•
No inventory costs - Cards are shipped and stocked at no cost to retailer.
•
Operational ease – Cards are sold and reloaded through existing system(s) in the
same way as other prepaid products or gift cards. Minimal IT and front end training
required.
•
Competitive advantage – Benefit from the only proven retail debit card program in
the industry. The NEC program is the industry standard and most accepted in the
grocery channel (Safeway, Food Lion, Pathmark among others)
•
Minimal space requirements – Cards are easily stocked on j-hooks, clip strips,
counter displays or prepaid product displays.
•
High Demand / High Need Product – Quality, name brand financial resource with
high perceived value and exceptional customer satisfaction scores.
•
Store traffic / incremental business enhancer – Consumers will come to authorized
retailers for card purchase and return for reloads. As a reload station in the “GREEN
DOT” Financial Network additional revenue will be earned by recharging cards issued
through non-traditional distribution channels or bought at other retail locations. Other
products will be purchased during these visits.
•
Employee Theft Resistant / Shoplift safe.
7
Managing Your Stored Value Portfolio
! Gift Card / Prepaid Debit Card
Gift Card
Prepaid Debit Card
Function:
Gift
Universally recognized financial instrument for daily
expenses / emergencies
For:
Someone else
Personal
Purchase options:
From one retailer
Anywhere Visa is accepted
Channels:
In-store. Some allow
online
In-store / online / over the phone / through catalog /
access to cash through ATM
Customizations:
Typically anonymous
Embossed with cardholder name
Theft/loss protection:
None
Cancel card; re-issue without loss, purchases
tracked
Record/reportage:
None
Online access / toll-free customer service service
Reloadable:
Typically not
Yes
Other functions:
None
•Option to checking accounts and money orders
•Pay daily/monthly bills
•Allowance from parents/living expenses for students
•Money transfer through duplicate card
Cost:
None
MSRP $9.95 plus reload and monthly fees
8
Managing Your Stored Value Portfolio
! Gift Card / Prepaid Debit Card (cont’d)
Gift Card
Prepaid Debit Card
Function:
An internal strategic tool to
gain advanced sales and
develop customer loyalty
A product to be sold that will drive traffic,
encourage revisit and deliver profit
Loyalty:
Direct communication with
customers through special
offers, newsletters, database
marketing, etc.
Only communication through card/ statement
inserts and statement headers
Store Traffic:
To use
To reload
Costs:
Materials (cards, packaging,
etc.)
No hard costs
Equipment
Technology for processing and
maintenance
Employee training
Revenue Streams:
Capture advanced sales
Initial purchase
Breakage from unused funds
Reload (recurring)
9
Contact Information
Saul Milgram
Product Manager
Re-Boost Product & Services Development
[email protected]
949.789.4857
Tony Wootton
Vice President
Wireless & Business Development
[email protected]
626.775.3716
10